- Mexico-based fintech company Credijusto announced it raised $42 million in Series B funding led by Point72 Ventures and Goldman Sachs PSI
Credijusto — a Mexico-based fintech company that offers asset-backed loans and equipment leases to small and medium-sized enterprises (SMEs) — announced it raised $42 million in Series B funding led by Point72 Ventures and Goldman Sachs PSI.
This is the first company based in Mexico that Point72 Ventures and Goldman Sachs PSI invested in. Thomvest Ventures, Wolfson Group, Third Lake Capital and Argo Ventures also participated. And existing investors Kaszek Ventures, QED Investors, Broadhaven Capital Partners, John J. Mack, and Supernode Ventures also joined the round.
This funding round comes less than 5 months after Credijusto closed a credit facility of up to $100 million with Goldman Sachs. And this equity raise provides a further boost to the company in its mission to expand credit access for SMEs throughout Mexico. The funding round will be used to support the company’s product acceleration and to launch new products such as digital advisory services and a credit card for SMEs. Based out of Mexico City, Credijusto employs 200 people.
“Credijusto’s tech-enabled approach to meeting the financial needs of Mexico’s underserved SME segment has huge potential. This is a very large market opportunity in which, after four years of rapid growth, the company has significant competitive advantages,” said Point72 Ventures partner Pete Casella.
According to official data, SMEs are 99% of businesses and account for 74% of total employment in Mexico. But these companies receive only 15% of total outstanding credit and banks reject over 80% of all loan applications from SMEs. Plus SMEs face a long and challenging process when seeking financing from traditional lenders by having to wait up to 6 months to receive funding and paying interest rates on average 5 times higher than those of their US counterparts.
Credijusto is addressing these market inefficiencies of the Mexican banking system by using a combination of cutting-edge software design, innovative applications of data science, and advanced decision-making and product structuring processes.
Using these technologies, the company provides affordable products for SMEs with faster delivery and superior customer experience. Credijusto typically issues loans between $20,000 and $500,000.
And in its four years of operation, Credijusto has established itself as a household name in Mexican fintech having successfully launched multiple financial products and originated over $90 million in term loans and leases.
“We have been impressed with the growth in the Mexican fintech space, and this investment reflects our belief in Credijusto’s ability to become the market leader in Mexico. We look forward to working with the company to help it achieve its ambitious goals,” added Thomvest Ventures managing director Don Butler.
“This financing round is a validation of Credijusto’s rapid growth … and will further support our aim of building a world-class tech company that empowers (companies) through access to credit,” said Credijusto co-Chief Executive Allan Apoj Pascal via Reuters.
Trending on Pulse 2.0
- Microsoft Sets Up An Innovation Hub In Noida, India
- Starbucks: Brady Brewer To Oversee Digital Experiences And Brand Management As New CMO
- Marie Myers Has Joined The KLA Board Of Directors
- Why Arista Networks Is Buying Big Switch Networks
- Wiliot Receives Backing From Vintage, Verizon, Maersk, PepsiCo, And NTT DOCOMO