Mexican fintech startup Aplazo, specializing in Buy Now, Pay Later (BNPL) services, recently secured a $45 million Series B investment led by QED Investors.

The four-year-old company offers payment solutions to a largely underbanked population in Mexico, providing both offline and online merchants with fractional payment options without requiring a credit card.

Aplazo CEO Angel Peña highlights the company’s use of AI to efficiently manage credit risks, contributing to a significant decrease in delinquency rates even as business tripled.

Currently, Aplazo collaborates with nearly 10,000 merchants and reports a major portion of its transactions from in-store sales, underscoring the limited reach of e-commerce in the region. The BNPL model has proven successful in boosting store sales and customer loyalty.

Looking ahead, Aplazo aims to become the preferred payment method in Mexico, leveraging its market position to enhance service offerings for both merchants and consumers. Despite rapid growth, the company maintains a cautious approach, achieving near cash-flow breakeven recently with a steady workforce.

This strategic growth and robust unit economics attracted new investors like Volpe Capital and support from existing backers such as Oak HC/FT and Kaszek, bringing Aplazo’s total funding to $175 million since inception.