Latin America’s trailblazing international trade platform, Finkargo, has just concluded a significant $20m Series A financing round.
The investment was spearheaded by QED Investors, accompanied by new investor Nazca and continued support from previous backers Quona, Flybridge, Maya, and ONEVC.
Finkargo stands out for its dedication to empowering small and medium-sized businesses (SMBs) with a comprehensive suite of services including global sourcing, trade services, and embedded financing options. The platform is designed to untangle the complexities of international trade, offering a one-stop-shop for importers, freight forwarders, suppliers, and tech innovators to operate within the global market.
The fresh capital injection is earmarked for bolstering Finkargo’s growth in Mexico, broadening its capabilities beyond trade financing to an all-encompassing array of trade services. This expansion includes supplier sourcing, product verification, cargo insurance, foreign exchange, and invaluable international trade data intelligence.
In the landscape of global trade finance, valued at an immense $5.2 trillion, a staggering financing gap of $1.7 trillion still exists. Finkargo aims to address this by democratizing access to capital for SMBs in Colombia and Mexico, who frequently find themselves at odds with the long payment-to-shipment cycles when importing from Asia.
“Finkargo is bridging the gap by leveraging data and technology to offer an essential import financing product for SMBs. This capital will allow Finkargo to continue scaling and expanding to Mexico, a huge market that will keep growing on the tailwinds of nearshoring,” QED Investors Principal Camila Key Saruhashi highlighted.
Finkargo’s impact over the past two years has been profound, enabling over 250 customers to engage in international trade and supporting more than 2,000 import operations, representing a remarkable $200m. The company has been instrumental in forging robust trade linkages, connecting importers in Colombia and Mexico with an extensive network of 430 suppliers across 40 countries.
“They’re flipping the classic vertical SaaS playbook by starting with a compelling, ‘must have’ fintech offering – credit for import/export SMBs – and layering in valuable workflow and supply chain management software,” Flybridge General Partner Jeff Bussgang remarked. “We couldn’t be more excited about their progress and potential.”
Previously, Finkargo had secured an undisclosed amount in its seed funding, setting the stage for this current series of investment, which marks a pivotal milestone in their journey to reshape the international trade landscape for SMBs.
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