Editor's note: This story has been corrected to clarify that Majority will U.S. headquarters in both Houston and Miami.
Majority, a financial tech firm that provides mobile banking services to immigrants, will expand in Houston and open in Miami after raising $27 million from investors.
The Swedish financial company's $27 million Series A financing round was led by Valar Ventures, a New York venture capital firm co-founded by billionaire Peter Thiel. The capital injection comes just six months after the startup raised $19 million in seed financing, bringing the company’s total funding to $46 million.
The new funds will be used to open a new U.S. headquarters in Miami and increase hiring in the U.S. and Sweden, founder and CEO Magnus Larsson said. He added that Majority is also moving its commercial headquarters to Miami from Stockholm.
Founded in 2019, Majority opened its first meet-up space in Houston in February 2020. The company will have U.S. headquarters in both Houston and Miami. Houston will continue to have a meet-up space for migrants and be the center for risk operations and customer service, and Larson said the digital bank expects to scale the Houston team. In Miami, the company plans to have between five and 10 employees.
The company is also rolling out its banking services to migrants across the U.S. who do not have Social Security numbers, which can limit access to financial services such as debit cards and low-fee money transfers.
In the absence of a social security number, many banks may ask for a green card, visa, individual taxpayer identification number or U.S. government-issued ID to register or open an account. Majority only requires a government-issued ID from any country and proof of a U.S. address for users to access banking and money transfer services.
“A bank account is the starting point to so many other things for someone moving to a new country, and American bureaucratic delays and backup shouldn't prevent people from being able to establish themselves here,” Larsson said.
Majority users receive bundled mobile banking, remittances and international calling services for $5 a month — far less than what they would usually pay for all three services. Majority primarily serves the Nigerian and Cuban communities in Texas and Florida.
The company reports that its service saves its Cuban members an average of $21 and Nigerian members $10 each month. On top of its platform, the startup has local advisers available to onboard and support new members in their native languages, and it hosts local meetups to help members build a sense of community.
The U.S. is home to an estimated 11 million undocumented immigrant workers and millions of other workers who travel to the country for temporary or seasonal work. And according to the International Labour Organization, there were 169 million migrant workers worldwide in 2021.
That represents a sizable number of people who are not being served by traditional mobile banking products.
“Requiring only a government ID and proof of U.S. residence to register for a banking membership is the latest innovation underscoring how Majority understands the unique needs of this community and works to create the tools to serve them," Valar Ventures founding partner James Fitzgerald said.
This story has been clarified to indicate that Majority will U.S. headquarters in both Houston and Miami.
