Mexican fintech Kapital raised $40 million in a Sequence B funding this month, along with $125 million in debt financing, because the SME-focused financial institution seeks to develop its attain elsewhere in Mexico and Latin America.
Tribe Capital, a enterprise capital fund primarily based in California, led the funding spherical. Different taking part buyers included Cervin Ventures, Tru Arrow, MS&AD Ventures, and Alumni Ventures. Whereas the corporate has not disclosed its valuation put up the funding spherical, it has raised over $370 million in debt and fairness, as reported on Crunchbase.
Co-founded in 2020 by Rene Saul and Fernando Sandoval, Kapital offers small companies in Mexico, Colombia, and Peru with monetary dashboards and real-time administration of operations and money circulation. That is just like what an ERP does for bigger firms.
The fintech additionally underwrites loans to those enterprises leveraging synthetic intelligence expertise and affords merchandise equivalent to bank cards.
Fintech Kapital purchased a financial institution this 12 months
The corporate carried out a $23 million Sequence A spherical earlier within the 12 months. It used the funds to assist its enlargement efforts and develop its platform. In September, it acquired Banco Autofin Mexico, a strategic transfer because it seeks to boost its companies within the nation. The merger between conventional banks and fintech corporations is an ongoing pattern, its CEO, Rene Saul, mentioned again then.
With the current fairness funding, Kapital plans to spend money on its expertise platform. Additionally to pursue a extra aggressive regional enlargement past Mexico. The corporate at the moment serves over 80,000 prospects within the area.
Kapital goals to handle the financing hole for small companies. It highlighted that in Mexico, solely 10.5% of small companies have entry to the entire financial institution credit score accessible for corporations.
Latin America enlargement
“Our current funding spherical will propel us ahead as we embark on an thrilling enlargement throughout Latin America,” mentioned Saul. The chief emphasised that Kapital’s introduction of recent AI-driven merchandise is a core worth proposition as the corporate expands into neighboring markets.
Proceeds from its debt funding, in flip, will translate into loans to SME purchasers in its current markets, its CEO mentioned. Lending merchandise play a vital position in Kapital’s choices, usually serving as an entry level for patrons to discover the corporate’s vary of merchandise.
“Kapital is punching method above its weight,” mentioned Arjun Sethi, Chairman and CIO at Tribe Capital in a press launch. “So many monetary platforms elevate billions earlier than attaining this degree of success: They’ve not solely achieved venture-scale progress in a fraction of the time, however they’ve additionally carried out so profitably.”
