Three years after its acquisition, Konfío, one of Mexico’s most prominent fintech firms, announced it would cease the operations of Gestionix, a company specializing in Enterprise Resource Planning (ERP) software it acquired in December 2020. The decision aligns with the company’s goal to focus its resources on bolstering its financial services offerings for small and medium-sized enterprises (SMEs) in Mexico.
In an official statement, Konfío emphasized its intent to ‘maintain our focus on offering the best financial and payment solutions for the country’s SMEs.’ The company also pledged to ensure a smooth transition for the current users of Gestionix, which will shut down its operations on October 30th of this year.
This is not the first time Konfío has ventured into acquisitions to strengthen its market position. Before Gestionix, the company acquired Astro in December 2019 and, more recently, Sr.Pago in August 2021. These acquisitions are part of a broader strategy to consolidate its presence in the Mexican fintech ecosystem.
In the wake of Gestionix’s closure, Contalink emerged as a viable alternative for independent accountants, accounting firms, and SMEs. Contalink positions itself as a significant player in the country’s changing fintech landscape with a focus on automation and accuracy in accounting processes.
According to a Q2 report by CB Insights on the state of fintech, companies in Latin America and the Caribbean raised USD $500 million, representing a 150% increase compared to the previous quarter. Konfío, valued at USD $1.3 billion as of September 2021 and has raised $706 million in debt, remains one of the largest fintech firms in the region, particularly in Mexico, a market only surpassed by Brazil in fintech growth.
Founded in 2013 by David Arana and Francisco Padilla, Konfío has benefited from investments from firms such as Tarsadia Capital, QED Investors, Softbank, among others, and focuses on providing quick online loans to SMEs using advanced technology, alternative data sources, artificial intelligence, and data science. The startup is one of the most recent unicorns in Latin America, contributing to the growing number of high-value companies in the region, now totaling 36, according to a report by Endeavor and Glisco Partners.”