Mexican fintech Konfío, which offers loans to small and medium-sized companies, is now valued at $1.3 billion after announcing a $110 million Series E equity round.
The round was led by Tarsadia Capital and QED Investors and was accompanied by shareholders Softbank, VEF, Kaszek Ventures, IFC, and Lightrock, Konfío said in a statement.
Konfío will expand its product offering
Konfío will use this latest investment to expand its product offering and improve its positioning in Mexico. It wants to become the only integrated platform for payment solutions, financial services, and productivity software for SMEs.
To date, the Mexican fintech includes a working capital loan product, a corporate credit card, a business-to-business (B2B) payment platform, and a business-to-consumer (B2C) payment solution.
The latter is part of Konfío’s portfolio, thanks to its acquisition of Sr. Pago last August. This was the company’s third purchase, after acquiring Astro in 2019 and Gestionix at the end of 2020.
The fintech announced that it has granted loans to more than 35,000 companies since it began operations in Mexico in 2014. The technology used by Konfío is based on approval, monitoring, and collection models with artificial intelligence, which it has been perfecting.
David Arana, CEO and founder of the company said that its risk and collection models allowed them to successfully weather the peak of the pandemic.
“They now support a healthy 10% and 40% month-over-month growth in Konfío’s working capital loan portfolio and the number of users of our novel corporate card,” said the CEO.