Tribal Raises $40M in Crypto-TradFi Debt Round to Power Payments, Financing for LatAm SMBs

Sara El-khalili
Published:
June 29, 2022
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Tribal Raises $40M in Crypto-TradFi Debt Round to Power Payments, Financing for LatAm SMBs

SAN FRANCISCO, January 6, 2022 —Tribal, a B2B payment and financing platform for emerging markets, raised a new debt round of $40 million.


The debt round is financed by Partners for Growth (PFG) and Stellar Development Foundation (SDF) to help Tribal expand its financing and payment services for small and medium-sized businesses (SMBs) to new countries in Latin America. 


“This is one of the first hybrid debt rounds combining both fiat and stablecoins. It’s a sign of crypto crossing over into mainstream use and adoption,” said Amr Shady, CEO of Tribal.


The debt round closes at a moment of major development and momentum for Tribal, which has experienced more than 50x growth in LatAm since early 2021, serving customers in Mexico, Chile, Peru, Colombia, and Brazil. 


“This round will help Tribal fund receivables from our growing customer base in Mexico, Brazil, Chile, Colombia, and Peru. The team at PFG has been great to work with and we’re excited to expand our partnership. We’re also thrilled to work closely with our equity investor, SDF, and to use Stellar USDC to fund the growth of SMBs in emerging markets,” said Duane Good, COO of Tribal.


Armineh Baghoomian, co-head of FinTech investments for PFG noted, “The rapid adoption and impressive scale of the Tribal platform speak to the solutions Tribal is building to solve significant unmet needs for SMBs across emerging markets globally. This strong performance is a credit to the innovative products that the world-class team at Tribal is delivering. We look forward to continuing to support Tribal as they expand.”  


The San Francisco-based company closed a combined Series A and debt round of $34.3 million last April. As part of that investment, Tribal received $3 million from SDF to facilitate the development of blockchain products and to support integration onto the Stellar network. 



“Integrating USDC into the Tribal ecosystem will provide SMBs with cheaper, easier, and faster access to capital,” said Mohamed Elkasstawi, chief strategy officer of Tribal who is spearheading the company’s blockchain strategy. 


Stellar USDC allows for near-zero transaction costs and the finalization of transactions in approximately five seconds, making it ideal for cross-border payments and remittances. SDF’s debt investment in Tribal leverages on-chain assets, following a recent movement of $150 million worth of USDC on-chain by SDF. 


According to Denelle Dixon, CEO and Executive Director of SDF, “World Bank data shows SMBs in emerging markets create 7 out of 10 jobs, yet the lack of access to financing is regularly cited as a major barrier to SMB growth. Tribal’s rapid expansion is another indicator of how much SMBs in emerging market economies want and need additional financial services options. We’re excited to help support Tribal as they serve even more small business owners, improve financial inclusion, and drive economic growth across Latin America and beyond.”


Sixty-two million SMBs are transacting globally every year, with the LatAm region representing a $175 billion market opportunity, led by Mexico—Tribal’s biggest market.


Tribal beta launched in December 2019 offering corporate cards and a spend management platform for startups and SMBs in emerging markets. With the increased demand for more efficient online B2B banking experiences, especially at the onset of the pandemic, Tribal expanded its payments and financing products to include Tribal Pay, helping its customers settle non-card purchases and benefit from extended payment terms.


With expertise honed at leading tech companies and financial institutions, Tribal’s founding team of serial entrepreneurs, data scientists, and FinTech execs have built and scaled startups in both emerging markets and the U.S. To spearhead its growth as it scales across markets, the company attracted a global management team of former leaders from HSBC, Visa, Experian, Mercado Libre, American Express, Nubank, Marqeta, and Didi Pay, among other leading startups and top financial institutions.


About Tribal 

Tribal is a financing and payments company built for emerging-market SMBs looking for a better way to pay and finance business expenses and increase their financial efficiency. The US-based startup provides modern payment methods like multi-currency physical and ​virtual business Visa cards​, local and international wires, short-term financing, and a powerful ​spend management platform​ to track and control expenses—all in one seamless interface. Founded by serial entrepreneurs, data scientists, and financial execs, Tribal is on a mission to empower emerging-market SMBs to grow and compete in a global economy. Tribal is backed by QED Investors, BECO Capital, Global Ventures, Stellar Development Foundation, Endure Capital, 500 Startups, Endeavor Catalyst, and OTG Ventures. The company is also part of the Visa FinTech Fast Track program among an elite group of companies. Learn more at www.tribal.credit 


About Partners for Growth

Partners for Growth (PFG) is a global specialty lending firm focused on providing innovative debt capital solutions for emerging growth companies. Established as Partners for Growth in 2004, the firm’s investment strategy dates to the mid-1980s when the co-founding partners managed the venture lending practice of technology investment bank Hambrecht & Quist, purchased by JPMorgan Chase in 1999. Leveraging decades of experience dedicated to this market, PFG has structured tailored debt facilities to support growth and expansion, working capital, fintech warehouse, and acquisition financing needs for over 200 portfolio companies globally since inception. PFG launched its Latin America Growth Fund in 2020 with SVB Financial Group, the parent company of Silicon Valley Bank, and IDB Invest.  For more information, visit www.pfgrowth.com

About Stellar


Stellar is a decentralized, fast, scalable, and uniquely sustainable network for financial products and services. It is both a cross-currency transaction system and a platform for digital asset issuance, designed to connect the world’s financial infrastructure. Financial institutions worldwide issue assets and settle payments on the Stellar network, which has grown to over 6 million accounts. 

 

About Stellar Development Foundation


The Stellar Development Foundation (SDF) is a non-profit organization that supports the development and growth of Stellar, an open-source network that connects the world’s financial infrastructure. Founded in 2014, the Foundation helps maintain Stellar’s codebase, supports the technical and business communities building on the network, and serves as a voice to regulators and institutions. The Foundation seeks to create equitable access to the global financial system, using the Stellar network to unlock the world’s economic potential through blockchain technology. Learn more at www.stellar.org.


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Tribal, SDF, and PFG  executives are available for interviews. Please reach out to the following contacts for more information.  


Tribal 

Sara El-Khalili

Communications Director

sara@tribal.credit


Partners for Growth

John Riordan

Head of Marketing

john@pfgrowth.com


Stellar Development Foundation

Lauren Thorbjornsen

Head of Communications

media@stellar.org