"Victory Park has been a great partner for us in every sense of the word. They are collaborative, creative and eager to help us find solutions. I would gladly recommend them to any company looking for a strategic capital provider to help grow their business."
– Al Goldstein, CEO
Avant Credit Corporation
Mexico City, June 18, 2018. Konfío, the leading online lending platform for small and medium businesses (SME) in Mexico, announces its $25 million Series C funding round, along with $60 million in debt, totaling $85 million in combined equity and debt capital. Vostok Emerging Finance (Vostok EF), led the Series C investment round and is joined by existing investors, including QED Investors, Kaszek Ventures, Quona Capital, the World Bank’s International Finance Corporation (IFC), and Jaguar Ventures.
Mexico is Latam’s second largest market opportunity with a population of 127 million (no 10 global) and c. 7 million SMEs. Konfío is a digital-first unsecured lending platform, with a mission to support the growth of Mexico’s vast underserved small business community. Within the broader Mexican SME credit space, Konfío focuses on the top end credit of the small business segment which is viewed as a $45 billion opportunity. With its online and digital first approach, Konfío leverages technology and big data analytics, complementing traditional financial analysis and streamlines the loan application process, providing convenience and affordability to customers who are creditworthy but historically underserved by traditional banking.
“We are excited to announce our latest portfolio investment and our first in Mexico. Konfío is an asset we have tracked for 2 years now and it represents a truly unique opportunity and a stand-out asset in Mexican SME credit space. We love scale opportunities, with clear traction and strong management teams and Konfío very much fits our investment mantra. We look forward to working with David Arana and his team on the journey ahead”, commented David Nangle, Managing Director of Vostok EF.
Victory Park Capital Advisors, LLC (Victory Park), a leading investment firm focused on providing private debt and opportunistic equity solutions worldwide, along with IFC, provided two separate credit facilities, which will fund Konfío’s future loan growth.
“IFC is pleased to support Konfío with debt capital in addition to our equity investment as the company continues to enhance its technology platform to meet the needs of SMEs across Mexico,” said Kai Schmitz who leads IFC’s FinTech Investments in Latin America. “We believe Konfío is well positioned to continue providing credit alternatives to an underserved customer base and are excited to help the business grow,” added Gordon Watson, Partner at Victory Park.
The additional equity and debt capital will allow Konfío to maintain its growth rate, and also improve their product offering that will help boost the development of the SME sector in the country.
“We’re delighted to partner with such prominent equity and debt investors to continue our mission of empowering SMEs through access to credit. Having shown strong traction in the last twelve months, we are looking forward to continue investing in building a world class company, improving our technology stack and scaling beyond unsecured business term loans, with the launch of new products for underbanked SMEs in the region”, said David Arana, Founder & CEO at Konfío.
Konfío is the leading online lending platform for small businesses in Mexico that uses data for rapid credit assessment, allowing owners to focus on what’s important – growing their business. Their mission is to boost the regional economy with working capital loans for promising small businesses.
Vostok Emerging Finance is an investment company with the goal of investing in early stage modern financial services companies across emerging and frontier markets. VEF trades in Sweden on Nasdaq First North under the ticker VEMF SDB. Vostok Emerging Finance’s Certified Adviser on Nasdaq First North is Pareto Securities AB. For more information please visit www.vostokemergingfinance.com.
Victory Park is a privately-held, SEC-registered, alternative investment firm. As an internationally recognized financial services investor, Victory Park finances both emerging and established businesses seeking liquidity and/or capital structure reforms with the goal of accelerating value creation. The firm’s offerings leverage broad special situations and credit structuring expertise, differentiated deal origination, creative financing capabilities and a deep network of industry relationships. Victory Park was founded in 2007 and is headquartered in Chicago with additional offices in New York and Los Angeles. For more information please visit www.victoryparkcapital.com.
IFC, a member of the World Bank Group, is the leading international development institution dedicated exclusively to the private sector in developing countries. IFC is also a leader in mobilizing third-party resources to fund its projects. Their willingness to work in difficult environments and their leadership to attract private funding allow them to increase their influence and generate a development impact far beyond of what their direct resources allow. For more information please visit www.ifc.org.
QED Investors is a boutique venture capital firm that actively supports high-growth businesses that use information to compete and win. Support is tailored to the specific needs of each portfolio company typically providing a combination of both capital and capability. QED's Founding Partners bring 60+ years of hands-on operational expertise building financial services enterprises, having come from Capital One, and currently invest broadly in the financial services ecosystem as well as in disruptive data-driven customer acquisition businesses. For more information please visit www.qedinvestors.com.
Kaszek Ventures is the leading Latin American venture capital firm investing in high-impact tech entrepreneurs. Founded by Nicolas Szekasy, MercadoLibre's former CFO, and Hernan Kazah, MercadoLibre's co-founder, the firm actively supports portfolio companies through value-added strategic guidance and operational support, supplying first-hand expertise and insights in strategy, operational execution, team-building, growth, technology, product, networking and more. For more information please visit www.kaszek.com.
Quona Capital is the first global fintech fund for the underserved, investing in innovative financial technology and services companies that promote financial inclusion for the three billion people around the world who are underserved by financial services. Quona Capital is an early growth-stage venture firm focused on financial technology for underserved consumers and businesses in emerging markets. The fund is sponsored by Accion, a global leader in inclusive finance with a rich history of double-bottom line investing, where its impact investments create positive economic and social returns. For further information please visit www.quona.com.
Jaguar Ventures is a venture capital fund focused on early stage Internet ventures in Latin America. Co-founded by Eric Perez-Grovas and Cristobal Perdomo, two well-known and highly regarded Internet entrepreneurs, with previous experience in important Internet companies such as MercadoLibre, Navent and Groupalia. Jaguar invests in innovative companies with the potential to transform their industries and is the only fund in Mexico and the region exclusively focused on Internet ventures. For more information please visit www.jaguarvc.com.