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Point72 Ventures, Goldman Sachs Lead $42MM Financing for Mexican Fintech Credijuato

August 30, 2019, 08:55 AM
Filed Under: FinTech
Related: Goldman Sachs

Mexico-based fintech Credijusto, which offers asset-backed loans and equipment leases to small and medium-sized enterprises (SMEs), announced today that it has raised a $42 million Series B financing round. The transaction marks a first foray into the Mexican market for both Point72 Ventures and Goldman Sachs PSI, who are leading the round, alongside Thomvest Ventures, Wolfson Group, Third Lake Capital and Argo Ventures, as well as existing investors Kaszek Ventures, QED Investors, Broadhaven Capital Partners, John J. Mack and Supernode Ventures.

Coming less than five months after Credijusto closed a credit facility of up to $100 million with Goldman Sachs, this equity raise provides a further boost to the company in its mission to expand credit access for SMEs throughout Mexico. Proceeds will be used to support the company's rapid growth trajectory and to launch new products, including digital advisory services and a credit card for SMEs.

"Credijusto's tech-enabled approach to meeting the financial needs of Mexico's underserved SME segment has huge potential. This is a very large market opportunity in which, after four years of rapid growth, the company has significant competitive advantages," said Pete Casella, Partner, Point72 Ventures. "We have been impressed with the growth in the Mexican fintech space, and this investment reflects our belief in Credijusto's ability to become the market leader in Mexico. We look forward to working with the company to help it achieve its ambitious goals," added Don Butler, Managing Director of Thomvest Ventures.

The SME segment in Mexico — Credijusto's target market — forms the backbone of the country's economy: according to official data, SMEs make up 99% of businesses and account for 74% of total employment in Mexico. Nevertheless, these companies receive only 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.

Credijusto seeks to address the market inefficiencies of the Mexican banking system. Using a combination of cutting-edge software design, innovative applications of data science, and advanced decision-making and product structuring processes, the company provides affordable products for SMEs with faster delivery and superior customer experience. In its four years of operation, Credijusto has established itself as a household name in Mexican fintech, having successfully launched multiple financial products and originated over $90 million in term loans and leases. The company is based in Mexico City and currently employs 200 people.

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