Mexico-based KonfÃo, an online lending platform for small businesses, has closed its Series D round on $100m.
The round was led by SoftBank Group’s Latin America fund, while other commitments were supplied by Vostok Emerging Finance, QED and Kaszek Ventures.
Vostok supplied an additional $12.5m in the round by converting its outstanding loan note and supplying an additional $2.5m capital injection. With this latest support, Vostok has invested a total of $27.5m into the FinTech company.
The potential size of Mexico’s SME loan market is expected to be more than $100bn; however, currently it only sits at around $45bn, according to research from McKinsey Global Institute.
Konfio combines data analytics and AI to help underserved small businesses in Mexico and Latin America access working capital. Through its digital platform, a company can get loans ranging from $10,000 to $15m.
Mexican companies which have taken out loans with Konfio have increased sales by an average of 28%, it claims.
KonfÃo director of corporate strategy and investor relations Gregorio Tomassi said, “This investment will enhance our working capital offering and add a suite of new products, including other lending solutions and business tools, all for the benefit of SMBs in Mexico.”
Since the company was founded in 2014, it has raised a total of $400m in debt and equity.
FinTech investment in Mexico has rocketed this year. In just the first three quarters of 2019, a total of $491.9m has been invested into the country’s sector, already over four-times more than the whole of that deployed in 2018.
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