Citi debuts first LatAm fintech investment with stake in Peruvian FX platform Rextie
US investment bank Citi has made a “strategic investment” in the Peruvian foreign exchange (FX) platform Rextie, marking its first investment in Latin America’s fintech scene.
Mateu Batle, the fintech’s CEO and co-founder, confirmed that the investment is to be applied to support its growth and expansion, which includes attracting more SMBs to the platform.
This ambition will be further reinforced by the planned integration of Citi’s FX technology, including CitiFX Pulse and Instant Payments, into its FX services, which in turn is expected to increase automation while enabling the 12,000 businesses and 170,000 individuals that currently use its platform to benefit from real-time payments, greater liquidity and more competitive rates.
Based in Lima, Rextie has closed more than $4.5 billion in forex transactions since it was founded in 2016, and is forecast to increase this figure to $7 billion by the end of next year. In addition to its currency exchange capabilities, the fintech also offers factoring solutions and pay-in and pay-out payment processing for businesses.
“Rextie’s founders have created a high growth business, with proven product-market fit and strong foundation of repeat clients,” comments Aldo Alvarez, lead for LatAm strategic investments at Citi.
The investment was made by Citi’s institutional strategic investments (ISI) arm, and exact terms of the deal have not been disclosed.