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Nexu is a Mexican fintech who specialize in providing loans for the purchase or rental of vehicles. It has closed a US$50 million Series A round of debt and equity financing.
The Mexican company was part of the winter 2020 batch at Y Combinator. It is backed by Altos Ventures, Wollef Ventures, Architect Capital, Clocktower Technology Ventures, CAPEM (Grupo Capital Empresarial), Gilgamesh Ventures and FJ Labs, to name a few.
Nexu’s Market Opportunity
Founded by Fernando Gómez and Abdon Nacif in 2018, Nexu is a financial solution to provide auto loans faster and with less paperwork than at a traditional dealership.
Gómez, co-director of the fintech company, told the media that only about 30% of people who ask for such a loan at car dealerships actually receive it.
This has given Nexu the opportunity to double the percentage of people approved to receive a loan. The increase has been due to the simple process that it offers customers: go to a Nexu representative at a dealership or register on the app for pre-approval, a step that takes 5 minutes; upload some documents that are requested; telephone validation (takes 1 to 2 hours); contract signing after the initial investment (1 day); receipt of the car (1 to 3 days).
Gómez noted that this fast approval not only benefits users, but also the dealerships. This is because they increase their sales.
Nexu will use this new capital to continue its expansion in Mexico, to offer more products on its platform and to perform more accurate and automated risk assessments.
The Mexican company has 120 employees, and monthly recurring revenues of US$1 million. In addition, Nexu is present in around 70 dealerships in the country, and has granted around 2 thousand loans.
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