Citi (NYSE: C), which claims to be a global leader in foreign exchange (FX) markets, has made a strategic investment in Rextie, Peru’s fintech for FX services.
The investment makes Rextie Latin America’s first FX fintech “to receive an investment from one of the largest banks in the world.” Citi’s FX technology will also be “integrated into Rextie’s currency exchange services.”
Through CitiFX Pulse and Instant Payments, Rextie’s clients will “experience a service that stands out for its automation, real-time payments, greater liquidity, and highly competitive rates.”
The milestone deal demonstrates “how fintechs and banks can collaborate to reinvent and innovate financial services in the region.”
David Gonzalez, Regional Head of Corporate Sales and Solutions for Latin America at Citi, said:
“This is a landmark transaction for Citi in Peru, our collaboration with Rextie shows the value-added opportunities that we can provide to fintechs. We are excited to deliver the power of our global FX network and tech solutions.”
By the end of 2024, Rextie expects to “surpass $7.0 billion dollars exchanged in the platform since the start of its operations in Peru.”
Mateu Batle, CEO and co-founder of Rextie, said:
“Going forward, Rextie will focus its efforts on attracting more small and medium-sized business, including customers involved in import and export activities. Also, we will accelerate our growth supported by our experience, the knowledge and specialized technologies that will be empowered by Citi. We thank this prestigious financial institution for trusting our business model and supporting our vision, consolidating the brand in the Peruvian market, Canada, and other countries in the region.”
The investment was made “by Citi’s Institutional Strategic Investments (ISI) arm, which invests in innovative fintech companies globally that are strategically aligned to Citi’s institutional businesses.”
Aldo Alvarez, Lead for LatAm Strategic Investments at Citi, said:
“Rextie’s founders have created a high growth business, with proven product-market fit and strong foundation of repeat clients. We are excited to invest in a company that’s participating in a very dynamic market in Peru.”
As noted in the update, Citi claims it is “a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States.”
Citi does business in nearly 160 countries and jurisdictions, “providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.”