Valiu
Currency exchange and global payments reimagined.
Startup Snapshot
Startup name: Valiu
Industry: Fintech
Business Model: B2B Cross-Border Payments
Founders: José Schinocca, Patricio Lynch & Mateo Tarabal
HQ Location: Mexico City, Mexico
Operations: Mexico
Team Size: 13
Founded: 2021
Stage: Pre-seed
Investors: Banco Base
Website: https://www.valiu.com/
What does Valiu do?
Valiu is a payment platform that helps Mexican businesses like yours easily manage international payments. The platform handles pay-ins and pay-outs, connecting you to 20 international banks. Valiu's self-manageable platform lets you buy, sell, and transfer currencies in real-time. Currently, Valiu supports 8 currencies and 13 crosses, allowing you to send and receive money anywhere in the world.
What’s your backstory?
José and Pato's journey began a decade ago when they bonded over Pato's pig farm idea, despite its legal hurdles. Although the farm project fell through, their enduring friendship prompted collaborative brainstorming. This led to the creation of "Escapando.com," a travel platform, after successful stints in NXTP Labs and 500 Startups, securing vital investments.
Eight years of operating Escapando.com revealed growth challenges. José returned to Argentina after facing setbacks, halting recruitment and forgoing salaries to support the team. Argentina's 2014 default strained fundraising, resulting in the loss of two co-founders.
Fortune smiled when José discovered an ad for Grupo Financiero Galicia's "Tarjeta Naranja" on YouTube, visited their website, and realized their tourism offering was lacking in the very early stages. Recognizing the untapped potential, he negotiated an agreement in 2017. Escapando transitioned from getaways to the acclaimed "viajes.naranja.com", an Online Travel Agency fueled by a $2M investment and a user base exceeding 5 million.
After the acquisition, José founded Valiu in collaboration with Grupo Financiero Base, while Pato started a co-living business called Nido Rooms. However, due to the pandemic challenges, Pato had to shut down Nido Rooms and José took this opportunity to invite him to join him at Valiu and a year later, Pato invited Mateo, whom he had collaborated with at Polymath ventures, to join Valiu's founding team.
How did you come up with the idea?
The inspiration for FX on Demand came from Banco Base's realization of the need to keep up with the rapidly digitizing world and develop new initiatives to stay ahead. They drew inspiration from companies like Ebury and Kantox and launched their own FX management initiatives customized for Mexico and Latin America.
How did you acquire your first customers?
Banco Base has operated with more than 20,000 companies in its history, and others have ceased operations either because they left the market or had different needs than the bank's model could satisfy. As their main investor, they shared a list of clients who had stopped using Base and why they no longer did business with them. Many of them required self-service FX services, just like what Valiu offered, and they began onboarding these clients.
When did you realize you had achieved PMF?
Valiu is on the verge of achieving PMF, as indicated by its churn rate of less than 1%, recurring customers who use the platform every month, and an increase in both transaction volume and the value of operations. However, one hindrance is that a bank account with Base is currently required to start operating, which creates friction. Fortunately, by the end of 2023, virtual wallets will be available, reducing friction and onboarding time from days to minutes. A typical company or SME has one main bank and two others, and as they gain confidence, they see an increase in operations.
What's your motivation?
The motivation behind the founding team stems from the potential impact they can have on businesses in Mexico and Latin America. By providing access to a service that was previously only available to a select few, they can make a significant difference. They strongly believe that they have the opportunity to revolutionize an industry that has remained unchanged in Latin America for over two decades. There is immense potential to create value, which drives them in their work.
What's next for Valiu?
José, Pato and Mateo believe that Valiu's journey is ongoing, and they hope it continues indefinitely. Their goal is to build a company that constantly evolves and creates value for its customers. In the short term, over the next five years, they see Valiu as an established business with sustainable growth. It will continue to develop innovative solutions and improve existing ones, based on a deep understanding of its customers' needs. They envision a company that is ready to expand regionally, with a dedicated and highly qualified team that is up for the challenge.
Tips for other founders:
Find good partners and dedicate much of your time to building a great team.
Never underestimate the value of a conversation with a customer. You should become obsessed with getting to know them.
Try to have as much fun as you can. Your team and your customers will thank you for it.
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