The popular stock trading app Webull has acquired the Mexican investment platform Flink, marking its entry into the Mexican market.
Financial terms of the deal were not disclosed.
Despite its Chinese roots, Webull is based in the United States and competes with Robinhood as a low-commission online trading platform that also offers cash management. It recently relocated its global headquarters from New York to St. Petersburg, Florida.
Established in 2017, Mexico City-based Flink has secured $70 million in funding, including a $57 million Series B announced in August 2021. Investors include Accel, Lightspeed Venture Partners, ALLVP, Clocktower, and Mantis Venture Capital (founded by The Chainsmokers). The startup enables Mexican consumers to invest in fractional shares of U.S.-listed companies without commissions.
As part of the acquisition, Webull is also acquiring the Mexican brokerage Vifaru Casa de Bolsa, which Flink had agreed to purchase in May 2022.
When Flink last raised funds, CEO and co-founder Sergio Jiménez Amozurrutia told TechCrunch that it seemed unfair that only a tiny fraction of the population in a country of over 120 million had the ability to invest in the capital markets.
Flink introduced its app in 2018 with a wallet service, a digital and physical global debit card backed by Mastercard. In 2020, it started offering the ability to buy and sell fractional shares of NYSE-listed stocks from 30 pesos without commissions. As of August 2021, it had 1.6 million users, but its current user count is unknown.
In a written statement, Ruben Guerrero, Webull’s head of Latin America, described the Mexican market as having “a young and vibrant population with a strong and untapped demand for technology-based wealth-building solutions.”
He added: “We believe the early success of Flink is proof of this demand, and that Webull’s approach of using technology to provide low-cost access to global markets for investors in all economies is a perfect fit for Mexico. We anticipate building on Flink’s success by offering its customers a wider range of investment products, user-friendly technology, and world-class support.”
Flink’s customers will retain access to trading U.S. stocks via the Flink platform. In the coming months, Webull plans to integrate its own technology into the platform and launch local Mexican investment and cash management products.
The Webull trading platform was launched in the United States in 2018 through a subsidiary of Webull that is an SEC-registered broker-dealer and FINRA member. It now has over 8 million opened accounts globally. With the addition of Mexico, Webull now operates in nine markets, including the U.S., Hong Kong, Singapore, Indonesia, Australia, South Africa, Japan, and the U.K.
Interested in more fintech news in your inbox? Sign up for The Interchange here.