Suma Wealth, a 3-year-old fintech company that combines culturally relevant content and experiences with financial tools to help Latinos build wealth, raised $2.2 million in new funding.
Leading the round was Radicle Impact, which was joined by Vamos Ventures, OVO fund, and the American Heart Association Impact fund. They joined previous backers Ulu Ventures, Female Founders Fund, and Chingona Ventures. The new round brings Suma’s total funding to $5.5 million.
Suma plans to use the new funding to hire in engineering, product, and sales. It also plans to invest in AI and other technology and data and analytics.
Suma’s proposition is that young Latinos have huge purchasing power and often are responsible for managing their families’ finances. At the same time, there’s a need for financial literacy. More than 9% of Hispanic households in the US were unbanked, meaning no one in the household had a checking or savings account, compared to 2.1% of white households, according to a 2021 FDIC survey.
“Our goal is to extend our reach beyond this achievement and continue our mission of closing the wealth gap within our Latino community,” said Beatriz Acevedo, CEO and cofounder of Suma.
Suma’s approach includes a lot of colorful, food-themed video and gaming content that’s useful (and funny). One video instructs viewers to “Pay your bills on time (just like you eat your mamá’s homemade empanadas while they’re hot),” for example.
“To stand out from the general market with our demo, we need to make sure we connect with them at an emotional level,” Acevedo said. “This is particularly important since for generations they’ve felt distrust in financial institutions.”
Suma also works with big banks like JPMorgan Chase and Wells Fargo to reach Latino customers and offers education programs for individuals and small-business owners.
Acevedo was a radio and television host who cofounded the Latino-focused media brand Mitú in 2012. It sold in 2020. She got the idea for Suma during the pandemic when she saw its disproportionate impact on Latinos, Acevedo told TechCrunch.
Along with closing the seed round, Suma announced that it had passed 1 million users on its platforms and acquired Intellecto, a platform designed to personalize users’ learning experiences.
Check out the pitch deck that Suma used to raise its most recent funding.
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