Majority, challenger bank for immigrants, raises an additional $37.5 million

Majority, a challenger bank for immigrants to the U.S., is raising more money and expanding its footprint. 

The Miami company announced a $37.5 million Series B funding raise on Wednesday, encompassing $30 million in equity from Valar Ventures and Heartland Capital, and $7.5 million in debt financing from a U.S.-based commercial bank. This brings the challenger bank's total funding to $83.5 million, following a $27 million Series A in December 2021 and $19 million in seed funding six months prior. 

"Our mission, as a company of immigrants for immigrants, has always been to provide migrant communities with the resources they need," Magnus Larsson, founder and CEO of Majority, said in a press release. "This funding will help us refine our services and better support these underserved communities."

Majority is one of several neobanks aimed at immigrants to the U.S. Its model combines a subscription-based digital banking app with a debit card, international money transfer, discounted international calling and more for $5.99 per month, with community building in the form of meetup spaces where customers can seek advice from people who speak their language — for instance, a space for Central African immigrants in Houston. The company opened three new locations in Florida and one new location in Houston since its Series A raise.

Customers do not need a Social Security number to apply for an account; instead, Majority accepts an international government-issued identification and some proof of U.S. residence. The company says that its revenue has increased five times over the past year. Banking services are provided by the $650 million-asset Axiom Bank in Maitland, Florida, or the $1.4 billion-asset Sutton Bank in Attica, Ohio.