Stori Targets IPO Within Two Years After Reaching Sustainable Profitability

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Stori Eyes IPO in Late 2026 Following Profitability Milestone

Mexican fintech reports net income for the first half of 2025, driven by growth in underbanked consumer services

Stori, a Mexico-based fintech focused on serving underbanked consumers, is aiming to be ready for an initial public offering within 24 months, according to Chief Executive Officer Bin Chen. The target follows the company’s achievement of sustainable profitability earlier this year.

The company recorded net income of 21.4 million pesos ($1.1 million) through the end of June, aided in part by credits from advance tax payments. Annualized revenue reached $300 million, up 80% compared with the previous year.

Focus on Underserved Segments

Founded in 2018, Stori offers payment cards, personal loans, and high-interest deposit accounts. It reports having 3.7 million users in Mexico, with a 99% approval rate for its credit card. The company’s strategy targets middle- and low-income consumers in a market where only about one-third of adults have formal credit and cash remains the dominant payment method.

Serving this segment brings inherent challenges. As of June, 23% of loans were delinquent, though Chen stated that this rate is better than the market average for the same customer base. Stori’s risk-adjusted return on assets stands at 10% on an annualized basis.

Path to Operational Profitability

Excluding tax-related credits, the company posted an operating loss of 272 million pesos in the first half of the year, narrowing its deficit by about 1 billion pesos compared to a year earlier. Chen said operating profits are expected later in 2025.

The company has reduced its cost to serve customers by more than 35% over the past year, citing the use of cloud computing and artificial intelligence in underwriting, customer service, and marketing.

Competitive and Regulatory Context

Mexico’s fintech market has become increasingly competitive, with companies such as Nubank and MercadoLibre also pursuing underbanked customers. Data from advisory firm Miranda Partners shows Nubank and Klar reporting delinquent loan ratios of 20.8% and 26.8%, respectively, as of June. Stori, meanwhile, holds what Miranda identifies as the healthiest loan-to-deposit ratio among the three.

Gilberto Garcia, head of intelligence at Miranda Partners, noted that many fintechs in Mexico have struggled to achieve sustainable profitability due to higher-than-expected credit risk and persistent operating costs.

IPO Prospects in a Slow Market

An IPO from Stori would represent a rare public listing for a Latin American venture-backed startup. The last significant offering in the region was Nubank’s debut in 2021, according to CB Insights.

Stori has raised $280 million in Series C funding between 2021 and 2024, with investors including Notable Capital, BAI Capital, GGV Capital, General Catalyst, and Tresalia Capital. The company last disclosed a valuation of $1.2 billion in 2021 and is not currently seeking new funding.

While operations in Colombia began in 2024, Chen said the primary focus remains on expanding in Mexico. He added that the company may at times prioritize growth over short-term profitability, but without allowing any prolonged losses.