SoftBank invests in GBM to accelerate democratisation of investments in Mexico

Investment platform in the Mexican stock market Grupo Bursátil Mexicano (GBM) secured up to $150m investment from SoftBank.

The investment will be made via the SoftBank Latin America Fund into a subsidiary of GBM. The transaction will value the company’s operating holding at more than $1bn.

The 35-year-old investment platform plans to use the new proceeds to fuel growth in all business lines as well as foray into new verticals.

GBM operates as an investment platform and brokerage firm in Mexico. The company serves institutions, individuals and external advisors. The company caters to “most of the largest investment managers worldwide,” as well as companies such as Netflix, Google and BlackRock. Specifically, it services 40% of the largest public corporations in Mexico and a large base of ultra-high net worth individuals.

With more than MX$800bn ($40.46bn) in assets under custody, GBM went from having 38,000 investment accounts in January 2020 to more than 650,000 by year’s end. In the first quarter of 2021, that number had grown to over 1 million — representing more than 30x growth from the beginning of 2020.

GBM co-CEO Pedro de Garay Montero said: “GBM’s mission is to transform Mexico into a country of investors. For over 35 years, we have been a leading player in the investment industry and today, thanks to our technology, we are now able to expand our services to everyone through our GBM+ platform.

“Additionally, GBM will keep investing in having the best product offering for our institutional and corporate clients. As well as building the best external advisor base in the country.

“SoftBank is investing in companies that are transforming the world, and GBM is no exception. We are delighted to partner with them as we accelerate our mission of helping Mexicans achieve financial freedom.”

Echoing a similar sentiment, SoftBank Group International CEO and SoftBank Group COO Marcelo Claure said: “As we look to make long-term investments in companies that will drive growth and innovation in the region, SoftBank is proud to partner with GBM, the leading investment platform transforming Mexico’s wealth management sector, in its mission to make investing accessible to all Mexicans.”

It’s worth noting that following this cash injection, GMB becomes the third Mexican company unicorn, after Bitso, a cryptocurrency platform, and Kavak, an online car dealership startup to receive investment from SoftBank.

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