Uala Buys ABC Capital for Ongoing Expansion

Ualá, an Argentine financial services firm, has reached an agreement to buy ABC Capital, a Mexican bank, which will allow it to boost expansion and growth plans in Mexico, Reuters reported.

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

Ualá said there’s likely to be a glut of investments, maybe as much as $150 million, in Mexico in the next 18 months, according to the report.

Ualá, originally debuted in October 2017, offers a Mastercard-branded prepaid card and app. It allows for numerous financial services, such as sending and receiving money, online shopping, ATM withdrawals and more, according to the report.

In August, Ualá closed a funding round for $350 million at a valuation of $2.45 billion.

Read more: Argentine FinTech Ualá Attains $2.45B Valuation After Investment Round

The round came at a time when investors were putting a lot of money into Latin America, with the economy shifting to digital payments.

Ualá debuted operations in Mexico in September 2020. It has issued around 1,000 cards per day and has issued over 2.5 million cards in Argentina since 2017 when it launched.

The company also announced plans to buy Wilobank, Argentina’s first digital bank, a move that would help the company reach more unbanked customers in a region where nearly half the population has no access to financial services.