Coba Secures a $2.2M Seed Round to Simplify Cross-border Financial Services in LatAm
Companies are increasingly finding their next hire nearshore as it not only provides a desirable balance between value and proximity but gains them access to a much larger talent pool. And while this trend has opened a new world of opportunities for the remote workers that are hired, it presents a new set of challenges for how they manage their finances in two currencies and across two countries.
Coba is bringing the next evolution in cross-border financial services - by fully streamlining how remote workers in LatAm receive, save and spend their money. Coba gives customers a US deposit account to receive their USD payments as well linked Mexican financial features that allow them to spend locally in pesos.
After completing the YCombinator Summer 2023 Batch, Coba has successfully closed its $2.2 million seed round. In addition to lead investors Alaya Capital and Switch VC, Coba has solidified its position in the fintech landscape with additional investors, including the founding family behind one of the leading B2B forex banks in Mexico, Banco BASE, as well as Topaz, the largest Mexican investor in NuBank.
Alaya Capital’s managing partner, Claudio Barahona, noted that “Coba is reshaping remote work dynamics. By offering a seamless dollar account in the U.S. and enabling users to cover their daily expenses in Mexico through the Coba card and their built-in bank payments, they're revolutionizing cross-border payments for remote workers. Embracing innovation, Coba is redefining how we manage finances in the global workspace”
Current State and Future Outlook
No other fintech has been able to provide a solution that efficiently bridges the cross-border needs of Latin American remote workers that earn in USD. By partnering with leading financial institutions on both sides of the border, Coba is able to provide a robust ecosystem of services: a US account to deposit USD earnings paired with both USD and local Peso spending Cards. Users can also access local bank transfers - all with no hidden fees and ultra competitive FX rates.
Thanks to Coba, a remote worker in a market, like Mexico, can buy a gallon of milk in pesos, pay a local bill and have those funds instantly and seamlessly draw from their USD account in the US.
Coba aims to grow its community to 5,000 exclusive members, initiate B2B partnerships, and expand their portfolio value-added financial services: insurance, tax, payroll advances and investments.
Founders with Financial and Product Backgrounds
The vision for Coba was born somewhere along the 400 mile stretch of highway I-35 between Austin, Texas and Monterrey, Mexico. Co-founds Joseph Saliba and Eduardo Lopez were discussing the challenges that foreign nationals like Eduardo have faced in accessing US banking. With limited options, those banks that did offer US accounts fell short on offering access and features outside of the US. These frustrations were confirmed in conversations with remote workers across the region.
Joseph and Eduardo teamed up with long-time colleagues Carlos Medellín and Abraham Kuri to bring the Coba vision to life.
About the future opportunities for Coba, Joseph notes, "We believe in the potential of talent across LatAm, and the Nearshoring boom is confirming that US companies share that belief. Global platforms like Deel are doing a fantastic job at solving the HR challenges across borders, but financial infrastructure has not evolved as quickly. Coba is that next step." Eduardo, for his part, recalls his parents and grandparents having to physically cross the border to open bank accounts in Texas resonates, “thanks to Coba and the rapidly evolving fintech frontier - this won’t be necessary for my son and his generation”.
The financial stack for the modern remote worker
Whether you’re a seasoned remote worker or just starting out, we want to make sure your experience is one to remember. Everyone deserves to get the most out of their professional careers by maximizing their wealth - remote workers included!
Start out by accessing to a US account to receive USD payments, without even having to leave home. You’ll get your very own card, enjoy easy ATM withdrawals in your local currency, and experience instant, international transfers, without hidden bank fees, for your peace of mind.
Get early access on the next link.
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