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Goldman Sachs Provides $100MM in Lender Financing to Mexican Fintech Credijusto

March 25, 2019, 09:15 AM
Filed Under: Lender Finance

Mexican fintech Credijusto announced that it has closed a credit facility with Goldman Sachs for up to $100 million. The transaction provides Credijusto with the funding capacity to further expand its lending across Mexico and will support the company in its mission to expand credit access for small and medium-sized enterprises (SMEs).

"This credit facility represents a significant milestone for Credijusto and allows us to continue to transform the way Mexican SMEs access capital," stated David Poritz, Co-CEO of Credijusto. "The company's innovative technology and its disruption of traditional underwriting models are reshaping the lending landscape. This financing will further support our growth trajectory and enable us to continue offering credit to the perennially underserved Mexican SME market segment," added Allan Apoj, the company's other Co-CEO.

Credijusto provides financial products and services to the SME segment, which forms the backbone of the Mexican economy. According to official data, SMEs make up 99% of businesses and account for 74% of total employment in Mexico, yet only receive 15% of total outstanding credit, as banks reject over 80% of all loan applications from SMEs. Additionally, SMEs face a long and challenging process when seeking financing from traditional lenders, waiting up to six months to receive funding and paying interest rates on average five times higher than those of their US counterparts.

Since its founding in 2015, Credijusto has sought to address the market inefficiencies largely present throughout the Mexican banking system. The company promotes financial inclusion by providing affordable asset-backed loans and equipment leases. Using a combination of cutting-edge software design, innovative applications of data science, and advanced internal processes for decision-making and product structuring, Credijusto provides better-priced products, faster delivery and superior customer experience.

"With its strong management team and tech-enabled business model, Credijusto is well-positioned to become a leader in the Mexican SME lending market.  The fintech landscape is significantly less crowded in Mexico than it is in the US, and there are openings for companies to grab market share and improve structural inefficiencies," noted Jason Nassof, a Vice President at Goldman Sachs.

In its first four years of operation, Credijusto has successfully launched multiple financial products and originated over $70 million in term loans and leases, growing at a compounded annual rate of over 275%. This rapid growth and success have established Credijusto as a household name in the Mexican fintech space.   

Credijusto's operational success has been supported by its strong fundraising track record. In 2018, the company raised a Series A financing led by Kaszek Ventures and QED Investors. Prior equity investors include John J. Mack, Victory Park Capital, Elevar Equity, City Hall Capital and Broadhaven Capital Partners, and the company has active debt facilities with institutional credit funds such as Promecap, Eiffel eCapital, PG Impact — and now Goldman Sachs. Credijusto is based in Mexico City and currently employs 120 people.

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