Mexico's Clip Raises $100 Million from Morgan Stanley Tactical Value to Scale POS Platform

Clip, a Mexican point-of-sale and commerce enablement platform for small and medium-sized businesses, announced on 18 June 2024 that it had secured a $100 million investment from Morgan Stanley Tactical Value and an unnamed US West Coast mutual fund manager.

Morgan Stanley Tactical Value is Morgan Stanley's investment platform focused on opportunistic credit and equity situations.

EXISTING INVESTORS AND VALUATION

Clip's existing investors include SoftBank Latin America Fund and Viking Global Investors, which led its $250 million Series D in 2021.

Founder and CEO Adolfo Babatz said the funds would go into product development and expanding Clip's offerings. Reports said the round kept Clip's valuation at about $2 billion, unchanged from its 2021 Series D.

SERVING SMALL BUSINESSES ACROSS MEXICO

Clip's core product is a mobile card reader and accompanying software that allows small and medium-sized enterprises to accept electronic payments through smartphones and tablets. The platform has expanded over time to include value-added services such as analytics, payment links, and working capital products.

A large share of the workforce is employed in the informal or semi-formal economy, and Banco de México's CoDi and DiMo instant-payment rails have created digital infrastructure that fintechs such as Clip can build on top of.

The company said the capital would be used to expand its operations and headcount in Mexico, enhance its payment solutions and help cash-only merchants move to digital payments.