Fairplay, the Mexican revenue-based financing platform, recently raised a Series A for US$35 million, of which US$15 million are equity and US$20 million in debt.
The equity financing was led by Dila Capital and Kayyak Ventures and the debt by Architect Capital. SpeedInvest and Elevar Equity also participated in the round. In addition, Fairplay is backed by QED Investors, Nazca, and investors such as Carlos García Otatti, CEO of Kavak; Ricardo Weder, CEO of Jüsto; and Carlos Salinas, CEO of ZeBrands.
With the new financing, the Mexican company raises US$40.1 million in funding, according to Crunchbase.
Where Will Fairplay’s New Round Go?
The startup, founded in 2019 by Manolo Atala and Andrew Devlyn, focuses on e-commerce brands selling on marketplaces in Latin America. Its work focuses on injecting growth capital to ventures that belong to these areas, especially for their marketing campaigns, inventory costs and logistics.
The market in which Fairplay invests had a 22.5% growth in 2021 in Mexico, according to the Mexican Association of Online Sales (AMVO, for its acronym in Spanish).
“Companies in the new digital economy work differently. That’s why we specialize in understanding these companies and the behavior of their sales and customer acquisition trends over time… our way of assessing risks is completely different, more meritocratic and data-driven,” Manolo Atala, CEO of the company, mentioned in a statement.
Fariplay also created an analytics platform for entrepreneurs to manage their e-commerce businesses more efficiently. This is thanks to the consolidation of data and a better understanding of their main metrics.
The new funding will be used to increase their workforce, which currently consists of 38 people and is expected to double in the coming months.
Currently, Fairplay works with companies that sell from US$15,000 a month to those with revenues of US$10 million a month. Atala told Techcrunch that the average investment Fairplay makes is around US$85,000.
The company has followed e-commerce growth trends, as during the third quarter of 2021 it grew 250% in originations over the previous quarter, and 200% in revenue.
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