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Vexi, a digital bank whose main product is credit cards, announced US$8 million in funding. Cinthia Merlos, co-founder and COO of Vexi, told Contxto that this is a Series A led by Magma Partners, with which they already have a total of US$32 million in funding.
The fintech company founded in Mexico in 2018 by Rojo Blasquez, Gabriela Estrada, Cinthia Merlos, Salvador Michel, and Carlos Franco will use the capital to increase its client base, incorporate talent into the team, as well as to improve its technology and risk algorithms.
Merlos said that the road to funding had been complicated: “Maybe we have gone through the same as other startups. [However], we’ve had a hard time because none of us came from the ecosystem but from the [traditional] corporate sector.
After almost four years of operations, Vexi is confident in the two credit cards it offers, one basic and the other with American Express benefits, since today they have 2.5 million applications and have had a 4X growth in the last 24 months, said Cinthia Merlos.
Vexi grants credit to under-banked people
The co-founder also mentioned that for 80% of their users, Vexi cards had been their first credit product to which they have access.
She added that their success had been achieved by having a card with a very large network with zero rates, a cashback program, lowering the interest rate —depending on the consumer’s behavior— and increasing the credit line.
However, she says that within Vexi’s mission is to take care of its users so that they do not over-indebt. They are working on this with data from their scoring, with which they evaluate the clients’ capacity and willingness to pay, as well as through a guide and accompaniment of the startup to the people.
For 2023, they plan to continue improving their technology and the use of data, as well as to start evaluating the product and the market. As for expansion plans, she said that for the moment, they will seek to continue strengthening their products and their presence in Mexico.
Main image: Adobe Stock
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