TraderPal, Costa Rican Fintech, Expands to Chile

Published 6 months ago

TraderPal, a Costa Rican fintech company founded in 2022, is expanding its operations to Chile. Founded by Nicaraguan entrepreneur Lester Pereira alongside his compatriots Vidal Gutierrez, Maximo Mongalo, and Jose Roman, the platform was created to provide an accessible international investment account for users with smaller budgets.

TraderPal: The Vision

Through its mobile application, TraderPal allows users to start investing from as little as $1 and open an investment account in the United States, without charging any transaction fees. The company’s business model focuses on providing financial inclusion for Latinos. Pereira, the CEO, highlights that TraderPal identified a need and potential to educate and provide quick, secure, low-cost access through a mobile solution.

Chile as a New Market

TraderPal, currently present in the United States, Costa Rica, Panama, and Puerto Rico, views Chile as an interesting market for business due to its high rate of banked individuals, good education, and stock market culture. Pereira notes that the growth of new markets and features will bring more benefits to their users.

The company’s development strategy targets young users who have recently graduated from university and have become “economically active”. Pereira believes TraderPal can help prepare them to develop a savings mindset and invest in the medium and long term. The company aims to reach 10,000 Chilean users in its first half-year.

Expansion and Future Projects

Beyond Chile, TraderPal anticipates forging three partnerships with financial companies that will incorporate TraderPal into their solutions. The company is also working with a broker in Panama to offer fixed income investment funds across the region with rates between 9% and 10%. Additionally, TraderPal is in the process of launching its own credit card in Panama, with plans to expand to Guatemala, Colombia, and Mexico.

So far, the fintech has raised around $10 million, which has been invested in marketing and technological infrastructure. The company aims to secure a Series A funding round of between $10 million to $15 million, some of which will be used to establish their own Digital Bank in Brazil (Nosso Bank). In their two-year projections, they expect to attract more than 300,000 customers and surpass one million in three years.

The Use of Funds

Pereira states that the funds will be allocated to 40% marketing strategy across Latin America, 30% for expanding the technological team and sales force, and the remaining amount to add new artificial intelligence features to the platform.