Narayan AmmachchiMexican financial technology startup Konfío, which lends loan to small and medium-sized enterprises (SMEs), has raised US$250 million in secured credit facility from Goldman Sachs and Victory Park Capital.
The proceeds of the deal will be used to provide more SMEs with unsecured working capital, the startup stated.
Founded by David Arana, Konfio lends small businesses with loans up to $20,000, working through an online process and a propriety algorithm that measures creditworthiness. The startup says most of its customers are those who are creditworthy but historically underserved by traditional banking.
It has disbursed loans to as many as 1 million clients since its founding, according to local media reports.
Borrowing credits from formal banks is a challenge for small businesses in Mexico, as they are required to provide collateral or guarantees against their borrowing. According to Konfio’s own survey, only 3 out of 10 micro businesses manage to borrow loans from banks.
“These credit facilities will allow us to continue serving the robust demand we see for our product… and it will help us continue fulfilling our mission of fuelling the growth of small & mid-sized businesses in Mexico,” said David Arana, CEO, and founder of Konfío.
The fintech firm has recently teamed up with Facebook as part of a program designed to help SMEs refresh their business models and accelerate growth.
Known as ‘Aula Morada’, the program is aimed at supporting 8000 businesses by training their executives in managerial skills.
“Konfío is changing the way Mexican companies access to credit, bringing to market an agile and innovative process based on powerful proprietary technology,” said Ram Sundaram, who heads Goldman’s structured-finance, investment, and lending business globally.
Other investors in Konfio include IFC, QED Investors, Kaszek Ventures, Vostok Emerging Finance, Accion Frontier Inclusion Fund, Accion Venture Lab, and Jaguar Ventures.
Add comment