Latin American fintech startup AlphaCredit, which lends loans at ultra-low interest rates, has raised US$125 million from a group of investors led by Japanese fund Softbank.
The fintech claims to have loaned more than $1 billion in Mexico and Colombian provinces, where communities have little or no access to formal banking services.
“Cutting edge technology and strong financial backing have allowed us to grow exponentially while promoting the economic development of a greater number of people that have limited access to credit,” says Augusto Álvarez, Cofounder of AlphaCredit.
The fintech lends loans at lower interest rates and has fewer non-paying accounts (NPA), according to Softbank. This is “why we are so excited to back these awesome entrepreneurs who are changing the landscape in Mexico and Colombia,” says Paulo Passoni, Managing Investment Partner at SoftBank Group International.
AlphaCredit is just one among many Mexican startups to raise funds from international venture capital funds. Konfio, Klar, and Credijusto also raised millions of dollars, saying they would expand operations throughout the region.
Venture funding in Mexico more than doubled in 2019 to $567.6 million, according to Crunchbase News.
“Specifically, that was 104.4 percent more than the $260.4 million invested in 131 rounds in 2018, and a huge jump from the $117.6 million raised across 142 rounds in 2017,” the news portal reported.