Marketplace Lending companies completed nearly two-thirds of FinTech investment in Mexico since 2015

Mexican FinTech companies raised over $821.5m across 82 transactions, with Marketplace Lending, Payments & Remittances, and WealthTech companies capturing 97.9% of the country’s total funding between 2015 and 2019.

Mexican Marketplace Lending companies received the lion’s share of FinTech investment, accounting for 63.5% of total funding in the country during the period. Mexico’s finance sector has left a large amount of businesses underfinanced. The country’s banking system is dominated by a few major banks such as HSBC, Banco de Mexico, Citi, Santander, etc., which control most of the market. Moody’s reports stated that around 90% of companies in Mexico are SMEs and only account for approximately 9% of overall bank loans. As a result, Marketplace Lending companies are filling the large gap left by the major banks, which explains the subsectors success in attracting most of the country’s FinTech capital.

In one if the biggest deals in the sector, Konfio, a Mexican lending platform, raised $250m in debt financing led by Goldman Sachs and Park Capital in September 2019. The company will use the funding to grow its lending business by providing more loans to Mexican SMEs.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2020 FinTech Global

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