Mexican private lender CXC secured a $32.6 million Series A financing round, the company said.
The round was led by Kaszek, with participation from Quona, Mercado Libre Fund, Daedalus, Saison Capital and Actyus. With this investment, they seek to expand their operations to the rest of Latin America and the United States.
The company plans to close 2024 with around US $11 billion of assets under management.
It has also secured contracts with local branches of companies such as regional e-commerce giant Mercado Libre, Bancolombia, Peruvian financial holding company Credicorp and Brazilian investment bank BTG Pactual.
Over the last year, this investment model registered a total of US $3.27 billion across the region, according to Pitchbook. A figure that reflects the growing interest in the industry.
“With the $32.6 million we are prepared to accelerate our expansion in Latin America and the United States,” Eduardo Etchegaray, co-CEO of CXC, told Contxto.
The executive says the investment will allow them to, “significantly expand our technology infrastructure, optimize our processes and further enhance our value proposition for fintechs and non-bank financial institutions in the region.”
Fintech market
The latest report in the Fintech in Latin America and the Caribbean series shoes the industry grew more than 340% in the number of fintech startups created in the last six years, going from 703 companies in 18 countries in 2017, to 3,069 in 26 countries in 2023.
In such a competitive market, it is key to have strategies that allow differentiation from the competition.
In this regard, María Teresa González, founding partner of CXC said, “Our main difference will lie in advanced technology, optimized processes and market experience. We have exclusive solutions for each market.”
In addition, she adds that instead of seeing other companies as a barrier, what is sought is to generate strategies that allow them to develop more innovative solutions, she also recommends taking advantage of the opportunity to establish valuable alliances.
“Instead of seeing it as a barrier, we see competition as an opportunity to highlight our strengths even more. It is important to establish strategic alliances with key players in the industry and continue to customize our solutions to offer differential value,” she said.
The company already operates in Colombia, Peru, Chile, Costa Rica and Panama, in addition to Mexico. In the latter market it manages around US$ 9 billion in assets and US$ 1.5 billion in Colombia.
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