Mexican fintech Clara has borrowed USD$90 million from US fund Accial Capital, as venture capital inflows into Latin America have been running low since the collapse of the Silicon Valley Bank.
This is the second time Clara has taken out a loan to expand operations. The fintech borrowed USD$150 million in mid-2022 from Goldman Sachs.
Clara’s frequent search for funding underscores the venture capital crisis in Latin America. The first signs of the dry spell started last year, when the US Federal Reserve began pushing interest rates up to quench inflation.
Clara needs cash to consolidate and streamline operations in Colombia, where its business is rapidly expanding thanks to more credit card purchases from corporate houses.
The company, whose expense management solutions are gaining massive traction, plans to widen its footprints in Brazil as well, where its customer base is expected to double in the next few months.
Mexico City-based Clara became a unicorn in 2021 when its valuation crossed the $1 billion mark after raising US$70 million in funding from a group of investors led by Cotoy.
Over the past two years, it has reiterated its desire to expand operations throughout Spanish-speaking Latin America, especially Chile, Peru, Argentina and Panama.
Clara sells credit cards issued by MasterCard. However, its success in Latin America appears to come from its technology platform, which companies use to manage business expenses.