Despite the setbacks of recent investments in US-based companies (read: WeWork, Uber, and a few others in their portfolio); in Latin America, Softbank doesn’t seem to be curbing investments anytime soon. Through the Latin America Fund, the Japanese firm has a brand new target in the region: the Mexican fintech AlphaCredit. Focused on consumer loans and financial solutions for both SMEs and consumers in Mexico and Colombia, the startup has raised an equity investment round of $125 million from Softbank as announced this Sunday, 26, in a press release.
“We want to thank SoftBank’s Latin America Fund and the other investors participating in this round for placing their trust in us and our innovative business model. Cutting edge technology and strong financial backing have allowed us to grow exponentially while promoting the economic development of a greater number of people that have limited access to credit,” stated Augusto Álvarez, AlphaCredit co-founder and co-CEO.
With 8 years of operation and aiming at a market still underserved by financial solutions and with a wide underbanked population, AlphaCredit seeks, backed by the new raising, to expand its business and secure a place as one of the leading fintechs in Latin America, a sector that has been seeing a surge of new players arise and thrive in the region.
“AlphaCredit provides fast, cheap credit lines to individuals and small companies via a programmed deduction system, which have low default rates thus allowing for low interest rates. Their approach is superior to everyone who belongs to their ecosystems and why we are so excited to back these awesome entrepreneurs who are changing the landscape in Mexico and Colombia,” said Paulo Passoni, Managing Investment Partner at SoftBank Group International, in the press release.