Payments startup Felix Pago raises $200M for AI and financial-services push

Felix Pago has secured $200 million in new funding as the remittance startup looks to expand its digital financial services beyond remittances, Bloomberg reported Tuesday.

The Series B financing includes $87 million of equity led by Andreessen Horowitz and $113 million in debt through a credit line from General Catalyst’s Customer Value Fund. QED Investors, Castle Island Ventures and Switch Ventures returned for the round, joined by Contour Venture Partners and Endeavor Catalyst.

Félix Pago has built a WhatsApp-based remittance service that allows users to send money from the US to family and friends across Latin America without downloading another app. Senders provide transfer details through chat and can pay by card or cash, while recipients receive the funds in local currency through a bank account or cash pickup.

Felix Pago says it has processed more than $8 billion in transactions. More than 6 million people have used the platform across the Americas, where the company operates in 11 countries including Mexico, El Salvador, Colombia and Ecuador.

The startup plans to use the fresh capital to move into financial products. Its roadmap includes lending and savings products, along with further investment in AI, engineering and financial infrastructure. The company also recently introduced mobile top-ups, allowing US-based customers to pay for phone plans for relatives in their home countries.

Artificial intelligence is expected to play a larger role in the platform. Felix Pago is developing an AI-powered financial assistant intended to help customers make everyday financial decisions. Its conversational interface is also designed to replicate some of the familiarity of speaking with a person when conducting financial transactions.

The expansion comes as digital remittances gain momentum in the US amid changing immigration demographics and policy conditions. Felix Pago is competing with established providers Western Union and MoneyGram as well as digital firms such as Remitly and Wise and crypto exchange Bitso for a Latin American remittance market exceeding $160 billion annually.

Felix Pago plans to expand into additional Latin American markets, including Brazil and Venezuela.