Digitt, a pioneering FinTech based in Mexico, has just secured a substantial $50m debt facility with New York’s CoVenture Management.
This strategic partnership aims to overhaul the way prime borrowers are treated in the credit card landscape.
CoVenture Management, a prominent private credit and alternative asset manager, is the sole investor in this significant financial boost. This investment marks CoVenture’s first direct foray into the Latin American market, signaling a robust confidence in Digitt’s mission and operations.
Digitt is not just another FinTech; it’s a lifeline for creditworthy individuals burdened by exorbitant credit card interest rates, which often range from 60% to 150% in Mexico. By focusing on prime borrowers who are typically overlooked despite their ability to pay, Digitt provides refinancing solutions that promise more affordable, flexible, and predictable terms.
The new funds are earmarked for a multifaceted expansion strategy. Digitt plans to broaden its existing debt refinancing product range, enhance its offerings, and deepen its engagement with a rapidly growing customer base. This strategic capital injection is expected to triple Digitt’s portfolio within the next year, enabling over 15,000 individuals to escape the clutches of predatory debt conditions.
The company’s co-founder, David García, shared his enthusiasm about the partnership: “Partnering with CoVenture marks a key milestone in our journey. We have built a strong foundation at Digitt that resulted in receiving 9 different offers from top players in the space, but given CoVenture’s reputation, experience, flexibility and ability to scale, we’re thrilled about working with them.”
Previously, Digitt had raised $4.8m in equity financing from a variety of venture capital firms including Clocktower Technology Ventures, FJ Labs, Gilgamesh Ventures, Yes VC, Angel Ventures Mexico, and New Stack Ventures, alongside notable angel investors like former SoFi President, Saturnino Fanlo.
Lei Tie, Managing Director at CoVenture, commented on the investment: “We are excited to be entering the Latin American market with Digitt and supporting David and his team’s continued growth on a product that already has an established track record and is actively solving an issue in Mexico’s consumer finance ecosystem.”
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