Digital bank Plata said annualized recurring revenue has reached $1 billion, a milestone that underscores the rapid expansion of its financial-services business in Mexico.

Plata reached a major milestone with its latest funding round led by Bicycle Capital, achieving a US$5 billion valuation. The transaction highlights strong investor confidence in Plata’s scalable, data-driven credit model and rapid customer growth, reinforcing its trajectory toward becoming a leading digital bank.

Plata received authorization from Mexican regulators to operate as a fully licensed bank, marking a pivotal transition from fintech to a regulated financial institution. This approval enables the company to expand its product offering and strengthen its funding base.

Mexico-based Plata raised $250 million through a new equity funding round valuing the company at $3.1 billion, as the fintech seeks to expand its business and transition into a full-fledged bank.