Flourish, a startup that aims to help banks engage and retain customers, raises $1.5M – TechCrunch

It’s not unusual lately to listen to of U.S.-based buyers backing Latin American startups.

But it surely’s not every single day that we hear of Latin American VCs investing in U.S.-based startups.

Berkeley-based fintech Flourish has raised $1.5 million in a funding spherical led by Brazilian enterprise capital agency Canary. Based by Pedro Moura and Jessica Eting, the startup presents an “engagement and monetary wellness” resolution for banks, fintechs and credit score unions with the objective of serving to them have interaction and retain purchasers.

Additionally collaborating within the spherical have been Xochi Ventures, First Test Ventures, Magma Capital and GV Angels in addition to strategic angels together with Rodrigo Xavier (former Financial institution of America CEO in Brazil), Beth Stelluto (previously of Schwab),  Gustavo Lasala (president and CEO of The Individuals Fund) and Brian Requarth (Founding father of Viva Actual). 

With purchasers within the U.S., Bolivia and Brazil, Flourish has developed an answer that options three important modules: 

  • A rewards engine designed to incentivize customers to avoid wasting or make investments cash
  • An clever and automatic micro-savings characteristic the place customers can create personalised guidelines (corresponding to transferring $15 right into a wet day fund each time their favourite sports activities workforce wins)
  • A monetary information module, the place private monetary transactions and spending patterns are changed into a query and reply recreation. 

Within the U.S., Flourish started by testing end-user mechanics with organizations corresponding to CommonWealth and OpportunityFund. In 2019, it launched a B2C model of the Flourish app (called the Flourish Financial savings App)  as a pilot for its banking platform, which may combine with banks by means of a SDK or an API.  It is usually now licensing its engagement know-how to banks, retailers and fintechs throughout the Americas. Flourish has piloted or licensed its resolution to US-based credit score unions, Sicoob (Brazil’s largest credit score union) and BancoSol in Bolivia. 

The startup makes cash by means of a partnership mannequin that focuses on consumer activation and engagement. 

Each immigrants, Moura and Eting met whereas within the MBA program on the Haas College of Enterprise at UC Berkeley. Moura emigrated to the U.S. from Brazil as a teen whereas Eting is the daughter of a Filiponio father and mom of Mexican descent.

The pair bonded on their joint mission of constructing a enterprise that empowered folks to create constructive cash habits and perceive their funds.

At the moment, the 11- individual workforce works out of the U.S., Mexico and Brazil. It plans to make use of its new capital to extend its variety of clients in LatAm, do extra hiring and develop new functionalities for the Flourish platform. 

Specifically, it plans to subsequent concentrate on the Brazilian market, and can scale in a number of choose nations within the Americas. 

“There are three issues that make Latin America, and extra particularly Brazil, engaging to us at this second,” Moura mentioned. “At the moment, the B2B monetary know-how market remains to be in its nascency. This mixed with open banking regulation and the necessity for extra accountable merchandise supplies Flourish a novel alternative in Brazil.”