AI-Powered Fintech Aplazo Secures $45 Million in Funding

Mexican fintech Aplazo secured US$45 million in a Series B funding round led by QED Investors.

The fresh capital will fuel Aplazo’s mission to formally integrate millions of unbanked Mexicans into the financial system.

Aplazo’s success hinges on its innovative use of artificial intelligence (AI). The company has reported a threefold increase in its user base since AI was integrated to its platform.

Founded in 2020, Aplazo specifically targets the underbanked population in Mexico by offering both online and offline merchants a “buy now, pay later” option that bypasses the need for debit or credit cards.

Unlike its US counterparts, Aplazo doesn’t rely on traditional credit history for approvals. This is crucial because over 40% of Aplazo’s users lack bank accounts altogether.

This barrier to entry for international players positions Aplazo to become a dominant force in Mexico’s burgeoning “buy now, pay later” market.

AI seems to be a game-changer for Aplazo. The company claims that within the last year, its business has tripled in size while delinquency rates have been cut in half.

Currently, Aplazo boasts partnerships with over 10,000 merchants, with a focus on smaller store owners who are often overlooked by traditional financial institutions.

This new funding round brings Aplazo’s total investment to US$175 million, with backing from prominent investors like Volpe Capital, Kaszek, and Oak HC/FT.