LatAm Fintech ARQ Finance Raises $70M
ARQ Finance, formerly DolarApp, just raised $70 million from heavyweights Sequoia and Founders Fund. The startup, founded by ex-Revolut employees, offers stablecoin-based multi-currency accounts and international transfers, and already boasts over 2 million users and $10 billion in annualized volume.
The founding team consists of CEO Fernando Terrés, CPO Zach Garman, and COO Álvaro Correa, all of whom held senior roles at Revolut, where they led products related to remittances and premium services. This background in a major European neobank provided direct experience in building global financial products. Prior to this new round, the company, then DolarApp, raised a $5 million seed round in September 2022, with participation from Y Combinator and the Latin American venture fund Kaszek. That initial funding helped establish its presence in Mexico before expanding to Argentina, Colombia, and Brazil. The rebranding from DolarApp to ARQ signals a strategic expansion beyond its initial focus on cross-border payments. The company is using the new capital to build a broader financial platform aimed at mass-affluent individuals, incorporating investment services, credit products, and everyday spending accounts. Sequoia Capital's investment is notable given its history in the region, having famously backed the Brazilian neobank Nubank, which yielded an 83x return for the firm. Founders Fund, co-founded by Peter Thiel, is also an investor in Nubank and brings a portfolio that includes SpaceX, Palantir, and Stripe. The Latin American fintech market is projected to grow from $15.23 billion in 2025 to over $54 billion by 2034, driven by high mobile phone adoption and a large underbanked population. Blockchain and stablecoins are considered a key emerging trend for reshaping financial services, especially for remittances. With the new funding, ARQ plans to hire for teams in New York, Buenos Aires, São Paulo, Krakow, Mexico City, Bogotá, and London. The company's expanded product suite will include access to stocks and ETFs, earnings accounts with up to 4.5% annual returns, and a "Prestige Credit Card" to compete with incumbent banks.
