- Mexican Credijusto, fintech focused on SMEs, acquired the local bank Banco Finterra, in what it claims to be the first acquisition of a bank by a fintech company in the country;
- The combined businesses have lent over $2 billion to underserved SMEs;
- Credijusto, founded in 2015, has raised more than $400 million in equity and debt from global investors including Goldman Sachs, Credit Suisse, and Kaszek, among others.
Mexico city-based small business lender Credijusto has announced it acquired the local bank Banco Finterra. According to Credijusto, this is the first acquisition of a bank by a fintech company in the country.
“Our acquisition of Banco Finterra creates the first truly digital banking platform for Mexican SMEs,” said Allan Apoj, co-CEO of Credijusto. “This acquisition marks a major milestone in Mexico and the region, and we are proud to be revolutionizing the future of banking in Latin America.”
Credijusto’s next step follows a global trend of fintech firms acquiring regulated banks to enable more diversified product offerings. Earlier this year, global payments fintech EBANX has acquired a 30% stake in Banco Topázio, in order to enhance its offer of international payment services to merchants selling in Brazil.
Banco Finterra specializes in financing solutions for small businesses and the agriculture sector. The combined businesses have lent over $2 billion to underserved SMEs, while Credijusto, founded in 2015, has raised more than $400 million in equity and debt from global investors including Goldman Sachs, Credit Suisse, and Kaszek, among others.
Mexico has about 6 million small medium enterprises, which generate over 50% of the country’s GDP and employ over 70 percent of the active workforce.
“By combining our proprietary software and data science expertise with Finterra’s banking capabilities, we are building a next generation financial services business,” said David Poritz, co-CEO at the fintech.
According to Reuters, the deal for under $50 million was closed last week following a year and a half in the works. The combined assets of the two firms are worth around $300 million.
“Our acquisition will also enable a digital cross-border experience to the thousands of businesses engaged in commerce between the U.S. and Mexico, an opportunity that we see as a major driver of growth for Credijusto,” added Poritz.