Mexican fintech Konfio upsized its excellent borrowing line with US companies Goldman Sachs and Gramercy to a mixed $227 million to extend SME lending within the area.
The fintech, which helps small companies entry loans, introduced it had prolonged the financing by two extra years and elevated its dimension to 4.1 billion Mexican pesos, or $227 million. The quantity is up 13.8% from a earlier dedication of three.6 billion pesos, or nearly $200 million.
“We’re more than happy to announce this credit score line extension, because it reveals the continued confidence within the Mexican SME phase and Konfío’s lending enterprise,” stated David Arana, CEO of Konfio, in a press release. “(It) helps us proceed with our mission to advertise development and productiveness amongst SMEs in Mexico.”
The startup will apply the brand new capabilities to extend lending, at the same time as the chance of a US recession looms in North America. The fintech stated the extra funds would end in 10 thousand new loans, sometimes starting from $8,000 to $165,000.
SME lending is without doubt one of the key merchandise inside Konfio’s ecosystem for small companies. It additionally contains enterprise bank cards and point-of-sale units.
Lack of financing has lengthy been a difficulty for Latin American smaller-sized corporations. The fintech claims it leverages information know-how to expedite mortgage purposes and lends to prospects “traditionally uncared for” by conventional banks.
VC funds backing Konfio
A number of enterprise capital traders again Konfio. These embody QED, Kaszek Ventures, and SoftBank Innovation Fund.
For the US funding financial institution, the fintech isn’t the primary of its form in its Latin American portfolio. Final yr, Goldman permitted a $140 million line to Xepelin, one other fintech lender in Mexico. Additionally, in 2022, it supplied $150 million to Clara.
Konfio stated it could mix the Goldman credit score line with a second facility from Gramercy.
“The mix of the Gramercy credit score line with the Goldman Sachs prolonged credit score line permits us to extra effectively deploy Konfío’s capital in favor of SMEs,” Jeffrey Sadowsky, Konfío’s Vice President of Treasury and Capital Markets, stated. “We sit up for persevering with to construct on the favorable expertise of getting these two establishments working in sync to assist our mission.”
Mexico total has turn into a hotbed of fintech exercise. Based on the Inter-American Improvement Financial institution, it’s the second-largest ecosystem within the area. It had 512 monetary know-how corporations as of 2021.
