Spanish banking major BBVA has said that it is planning to invest as much as $150m in fintech venture fund Propel Venture Partners (PVP).
This new capital brings total commitment from BBVA towards PVP to over $400m, following its earlier investment in 2016.
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The initial $50m will be released in coming few weeks followed by funds in 2022 and 2023, which will be open to outside investors.
PVP will be investing the fresh fund in next generation start-ups, which focus on rebuilding financial services.
Americas will remain as its main geographic focus along with flexibility to invest globally, the bank said.
BBVA executive chairman Carlos Torres Vila says “Propel gives BBVA a privileged window into the fintech ecosystem. The excellent performance of the funds is coupled with lessons and experiences BBVA, and the entrepreneurs have shared, helping to accelerate our overall transformation.”
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By GlobalDataBBVA invests in early-stage start-ups and maintains a close relationship with global fintech ecosystem through various programmes and collaborations.
It has strategic partnerships with several tech companies including Coinbase, DocuSign, Hippo, Guideline, and Neon.
Till now, the finetch venture fund has invested in over 40 companies across countries like the US, Mexico and Brazil.
“The initial fund has already shown clear signs of success with two billion-dollar exits and several companies with valuations exceeding $500 million. According to CB Insights, the fintech sector has grown from $22 billion in 2016 to $40 billion in 2020. In 2020, the pandemic year, Propel’s portfolio companies raised over $1 billion in new financing,” the bank said in a statement.
