The equity financing is expected to enable AlphaCredit to strengthen its position in Latin America as a financial technology platform, and expand its operations
Mexico-based FinTech platform AlphaCredit has secured up to $125m in an equity financing round led by SoftBank’s Latin America Fund.
The Series B financing round has also attracted participation of other major international venture capital funds and the existing investors of AlphaCredit .
The equity financing is expected to enable AlphaCredit to strengthen its position in Latin America as a financial technology platform and expand operations, leveraging the competitive advantages of its business model.
The Latin American-focused FinTech platform specialises in consumer lending and financial solutions for Small and medium-sized enterprises (SMEs).
AlphaCredit cofounder and co-CEO Augusto Álvarez said: “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.”
AlphaCredit granted $1bn in loans to clients who are underserved by traditional banks
AlphaCredit said that it has been operating in the Mexican and Colombian markets for eight years, and has granted more than $1bn in loans to its clients, who are underserved by traditional banks or lack access to other means of financing.
The company holds various platforms including AXS Access, Check!, Alcanza Capital and Bontu, and is said to offer customised lending solutions to consumers and SMEs.
The transaction, which is subject to certain customary closing conditions, includes the approval of Mexico’s competition authority (COFECE) and certain third parties.
AlphaCredit cofounder and co-CEO José Luis Orozco said: “Through this equity investment we will continue to provide fast, easy and flexible loans for individuals and small businesses, helping them improve their quality of life and promoting economic growth.”
“We are committed to financial inclusion through innovation and technological development. We bring the best of both worlds to provide efficient access to credit and financial solutions to sectors underserved by traditional banking.”