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Comun, a digital bank dedicated to serving immigrants in the United States, has successfully raised $21.5 million in its Series A funding round. This recent funding comes just months after a $4.5 million raise and highlights the startup’s rapid growth and increasing valuation. The Series A funding round was spearheaded by Redpoint Ventures, with additional contributions from ANIMO Ventures, Costanoa Ventures, FJ Labs, RTP Global, and South Park Commons.
Established in late 2021 by Andres Santos and Abiel Gutierrez, Comun seeks to tackle financial exclusion among Latino immigrants by offering accessible and inclusive digital banking solutions. The startup has seen remarkable traction, with monthly revenue increasing by 50 times in the first half of 2024. This growth, despite initially low revenue levels, reflects remarkable adoption and expansion in user base and revenue per user since the beginning of the year.
Comun distinguishes itself from traditional banks by offering services tailored to the needs of immigrants. The digital bank provides native Spanish-speaking customer support, accepts 100 different types of IDs from Latin America, and allows account applications without a U.S. Social Security card or proof of address. This approach is designed to remove friction points and improve accessibility for a community that often feels underserved by traditional banking institutions.
The startup’s recent innovations include a popular remittance product, which sees an average of 3.1 transactions per customer per month. Comun is on track to handle over $1 billion in annual payment volume. The decision to transition from a Banking-as-a-Service (BaaS) model to owning its infrastructure has contributed to its rapid scaling, especially after issues faced by fintechs relying on BaaS providers like Synapse.
Comun’s revenue model includes interchange fees, remittance fees, and interest on deposits. The company is also focusing on diversifying its revenue streams beyond interchange fees, with significant growth in remittances. The new funding will support the expansion of Comun’s locations and the development of new products, including a forthcoming credit product.
Redpoint Ventures’ principal, Meera Clark, praised Comun’s impressive metrics and organic demand, highlighting the startup’s technical rigor and the strength of its team, which includes veterans from Brex and Nubank. Comun plans to leverage its new capital to further its mission and enhance its offerings for immigrant communities.