Mexican Nelo, a fintech founded by former Uber execs, raised a $3 million Seed round led by Homebrew, with participation from Susa Ventures, Crossbeam, Rogue Capital, and Unpopular Ventures, as first reported TechCrunch. The fintech is targeting Mexicans to use Nelo’s microloans and finance their purchases online, without the need of a credit card, the trendy model ‘buy now, pay later’.
Nelo presents itself as “a Buy Now Pay Later for Latam, starting in Mexico”. Such business model has made the Melbourne-based firm Afterpay grow (with its 10 million customers in the US, UK, and Australia) amid the e-commerce boom caused by the COVID-19 pandemic. Affirm, PayPal and the Swedish Klarna are also gaining new global markets with this kind of solution. In Mexico, Kueski, Alchemy and Addi are also fighting to capture these market share betting on the recurrence of its customers and partnerships with merchants.