Coba Revolutionizes Financial Services for Remote Workers

Published 13 days ago

Companies are increasingly finding their next employees close to the country, providing a desirable balance between value and proximity, while accessing a larger talent pool. This trend offers new opportunities for remote workers but also poses challenges in managing finances in two currencies and countries. Coba is bringing the next evolution in cross-border financial services to address these issues.

Coba’s Offering

Coba provides remote workers in Latin America with a US deposit account to receive payments in USD, along with linked Mexican financial features allowing them to spend locally in pesos. This innovation streamlines the way remote workers receive, save, and spend their money, making cross-border transactions more efficient.

Investment and Support

After completing the YCombinator Summer 2023 batch, Coba successfully closed its initial $2.2 million funding round. Key investors include Alaya Capital and Switch VC, solidifying Coba’s position in the fintech landscape. Additional investors include the founding family behind Banco BASE, a leading B2B forex bank in Mexico, and Topaz, the largest Mexican investor in NuBank.

Claudio Barahona, Managing Partner at Alaya Capital, remarked that Coba is reshaping remote work dynamics. By offering a seamless US dollar account and enabling users to cover their daily expenses in Mexico via integrated banking payments, Coba is revolutionizing cross-border payments for remote workers.

Current Status and Future Outlook

No other fintech has been able to efficiently cater to the cross-border needs of Latin American remote workers earning in dollars. By partnering with leading financial institutions on both sides of the border, Coba can provide a robust service ecosystem: a US account for depositing earnings in USD combined with spending cards in USD and local pesos. Users also have access to local bank transfers, all without hidden charges and with ultra-competitive exchange rates.

Coba aims to grow its community to 5,000 exclusive members, initiate B2B partnerships, and expand its value-added financial services portfolio: insurance, taxes, payroll advances, and investments.

Experienced Founders

Coba’s vision originated somewhere along the 400-mile stretch of I-35 between Austin, Texas, and Monterrey, Mexico. Co-founders Joseph Saliba and Eduardo López were discussing the challenges foreigners like Eduardo faced in accessing US banking. Limited options and difficulties in accessing services outside the US were confirmed in talks with remote workers across the region.

Joseph and Eduardo partnered with long-time colleagues Carlos Medellín and Abraham Kuri to bring Coba’s vision to life. Regarding future opportunities for Coba, Joseph stated, “We believe in the potential of talent across Latin America, and the rise of Nearshoring confirms that US companies share this belief. While global platforms like Deel are doing a fantastic job addressing HR challenges across borders, the financial infrastructure has not evolved as quickly. Coba is the next step.” Eduardo noted that his parents and grandparents had to physically cross the border to open bank accounts in Texas, “thanks to Coba and the rapid evolution of fintech, this won’t be necessary for my child and his generation”.