Aplazo, a Mexico-based BNPL (Buy Now, Pay Later) FinTech platform, recently announced the closure of an impressive $70m in equity funding.
This includes a significant $45m from its Series B round. The funding round was led by QED Investors, with contributions from new investor Volpe Capital and existing backers such as Oak HC/FT, Kaszek, and Picus Capital. Since its inception in late 2020, Aplazo has amassed over $100m in equity financing and an additional $75m in committed debt funding.
The additional capital comes as Aplazo experiences a tripling in revenue, driven by expanding its market share across both online and offline merchants and achieving near breakeven in recent financial performances. The funds will be utilized to further refine Aplazo’s top-tier product offerings for both consumers and merchants, and to accelerate product innovation, including the integration of AI to enhance consumer and merchant insights and improve risk assessment.
Aplazo aims to redefine the payment landscape in Mexico with its fair, simple, and transparent financial solutions. According to CEO and co-founder Angel Peña, the company is focused on distancing its services from traditional credit products that often lead consumers into debt traps. This latest investment will help propel Aplazo’s mission to become the preferred payment method in Mexico.
Positioned as the category leader in the BNPL space, Aplazo has made significant inroads into Mexico’s predominantly offline retail market, which constitutes about 93% of the total retail sales. The company reports that in-store transactions make up more than half of its business, significantly enhancing customer retention and loyalty. Aplazo is noted for being a primary or sole credit source for many of its users, with 70% not having any other registered credit products. This approach has allowed Aplazo to maintain low credit loss rates and establish a sustainable business model that benefits both consumers and merchants.
Additionally, Aplazo has distinguished itself from other BNPL providers by offering a single-use virtual card, allowing consumers to make installment purchases across a vast network of merchants, both online and offline.
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