Ualá strikes deal to buy Mexico’s ABC Capital

Argentina-headquartered financial technology firm Ualá announced on Wednesday that it has finalized an agreement for the acquisition of Mexican lender ABC Capital. This is a step closer to the fintech firm’s plan to expand its operations in the North American country.

The deal is now subject to passing the necessary regulatory approvals from the government. The Argentine unicorn is looking to raise another US$150 million in Mexico over the next 18 months.

The firm also says it plans to speed up the launch of new business verticals to reinforce its financial ecosystem.

“Our commitment to financial inclusion in Mexico is absolute. We come to revolutionize the market with more technology, access, and transparency,” Pierpaolo Barbieri, founder, and CEO of Ualá, said in the statement.

“Once we obtain the corresponding authorizations, the incorporation of ABC Capital to our group will allow us to offer better financial services to all Mexicans. This great step will accelerate our investment and growth in this beautiful country,” he added.

Ualá in August finalized a US$350 million financing round led by China’s Tencent Holdings Ltd and SoftBank Group Corp.’s Latin America-focused fund, crossing a valuation of about US$2.45 billion.

Launched in October 2017, Uala offers a Mastercard branded prepaid card and a mobile application through which its users can access various financial services such as money transfers, online shopping, withdrawing cash at ATMs,, and requesting loans.