Mexican startup Clip, which in 2021 reached a valuation of US$2 billion during an investment round by SoftBank and Viking Global Investors, announced in a press release that it received a US$50 million credit facility from Morgan Stanley, J.P Morgan, and HSBC.
According to the deal, the credit facility is revolving (i.e., it is renewed as it is repaid), unsecured (backed only by Clip’s creditworthiness), and will be extended for three years.
Clip announced that it will use the financing to expand its efforts to meet businesses’ demand for innovative payment solutions and improve financial access for Mexican businesses and consumers.
Its CEO, Adolfo Babatz, who co-founded the fintech in 2012 after leaving his job at PayPal, said that this credit line represented a milestone for Clip by delivering additional support to its already solid balance sheet and liquidity position. “It is important for Clip and our story to receive the support of banks of this caliber, validating our mission of expanding financial inclusion in Mexico.”, Babatz said. A piece of data supports what the CEO said: 75% of the merchants using Clip today previously operated solely with cash.
In May, Clip launched a series of variations of its payment product. In August, through the fintech Swap, which it acquired in 2020, it obtained authorization to operate as an IFPE (Institución de Fondos de Pago Electrónico) in Mexico, a license granted by the Mexican National Banking and Securities Commission.
Main image: Clip.
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