Konfío, the Mexican fintech of financial services focused on small and medium-sized businesses, announced the raising of a US$125 million Series E round. The investment was led by Lightrock, a global impact fund focused on growth equity, and followed by investors such as Softbank, Kaszek, QED Investors, VEF and IFC.
The newly raised capital will be used to expand Konfio‘s product portfolio in the credit, business management and payment processing segments. The fintech also plans to make acquisitions of technology companies that can be integrated into its platform to add value to the current ecosystem of services.
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Founded in 2013 and voted one of the 20 best-financed fintechs in the CB Insights annual ranking, Konfío targets small and medium-sized businesses at an early stage that need financial and/or operational support – according to Mexico‘s Business Competitiveness Development Center, 75% of new companies declare bankruptcy between 2 and 5 years due to mismanagement.
“We see technology as a great enabler to level a playing field that for a long time has been uneven, providing growing companies opportunities and conditions to expand and compete successfully with larger companies,” explains David Arana, CEO and founder at Konfío.
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Fintech‘s product portfolio includes credit, business-to-business payments management, a financing platform, and a cloud-based system for operational, accounting and financial management, available to both businesses and accountants.
Also according to Arana, in 2020 Konfío increased its credit portfolio by 20%, while traditional banks reduced credit due to the economic crisis caused by the pandemic. The fintech recently announced the extension of its credit line with Goldman Sachs bank by $160 million. By 2021, the startup plans to double the portfolio under management.