Camino Financial, a startup leveraging data to offer small business loans, has closed its Series A round on $8m.
The funding was led by Mexican financial services company Crédito Real.
Alongside the Series A, $3m in notes from DILA Capital, 10x Capital Management and other investors will convert into capital.
With the fresh funds, the FinTech hopes to deepen its AI-driven business intelligence capabilities.
Camino is a data-driven platform helping US-based Latinx businesses access affordable credit. AI technology aggregates data to help businesses receive instant quotes for loans up to $400,000. The mobile app enables businesses to manage their loans whenever.
Last year, Camino Financial and Crédito Real launched a joint credit facility targeting US Latinx businesses. This facility has distributed more than $30m in loans and has seen its monthly loan originations grow by 419% year-over-year.
Camino Financial claims the credit facility is on track to surpass all other debt funds focused on Latinx businesses within the next 12 months.
Camino Financial CEO Sean Salas said, “Data is power, we are excited to be using our platform to build the largest pool of application and performance data on underbanked U.S. Latinx businesses.
“Armed with this information, we can build machine-learning models to help make credit and other financial solutions more accessible to this ‘New Mainstream Economy.’ Ultimately, we see a future where Latinx businesses expect finance companies to have omnichannel capabilities, so we’ve designed our technology for simple integration into corporate distribution partners with entrenched networks in the Latinx market.”
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