Finkargo, a Colombian startup looking to close the trade finance gap in Latin America, has raised $75m in structured credit.
According to Finkargo, SMEs face a 50% rejection from financial institutions when applying for trade finance credit. This results in a $1.7trn trade finance gap.
The company aims to bridge the 350$bn trade finance gap in Latin America by leveraging alternative risk analysis and deep logistics expertise to unlock SMEs growth and competitiveness in international markets.
SMEs cannot benefit from global trade due to capital constraints, as 90% of international trade relies on financing.
According to a report from LatamList, the investment was made by Community Investment Management (CIM), an impact investment fund that provides financing to ventures that seek to contribute to the financial inclusion of entrepreneurs and citizens in emerging markets.
Finkargo created a platform for financing foreign trade operations in Latin America, enabling small and medium-sized companies to grow their operations using logistical and technological support.
Santiago Molina, CEO of Finkargo, said, “If the SMBs we finance manage to accelerate their growth and profitability, our objective will be fulfilled. We will then be able to continue setting investment goals that are not only larger, but also more inclusive for those companies that still cannot access the international market due to lack of capital.”
Alejandro Arenas, investment principal of CIM, added, “We are excited to support Finkargo’s responsible placement of capital to continue transforming financial inclusion and promoting the growth of SMBs in the region. Finkargo’s mission is aligned with our vision of supporting technology enabled financial solutions that generate real and scalable impact in underserved sectors.”
Earlier this year, Online payment solution AstroPay teamed up with cryptocurrency exchange Huobi Global to provide fiat to crypto payment services in Latin America.
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