SoftBank-led group to invest $125 million in Latin America-based fintech startup AlphaCredit
AlphaCredit, a Mexico-based fintech startup and one of the fastest growing technology-enabled financial platforms in Latin America, announced today it has signed an equity round for up to $125 million led by SoftBank’s Latin America Fund. The Series B round was also joined by other leading international venture capital funds along with a group of its existing investors.
The equity infusion will allow AlphaCredit to continue its expansion and leverage the competitive advantages of its proven and profitable business model. The deal is subject to, among certain customary conditions to closing, the approval of Mexico’s competition authority (COFECE) and certain third parties. Back in July 2016, AlphaCredit reached a deal to acquire 95.6 percent of local consumer lender Grupo Finmart from EZCORP and minority shareholders.
Co-founded in 2010 by Co-CEOs Augusto Álvarez and José Luis Orozco, AlphaCredit provides consumer loans and financial solutions for consumers and SMEs in Mexico and Colombia through innovative solutions and cutting-edge technology.
“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,” stated Augusto Álvarez, Cofounder and Co-CEO of AlphaCredit.
“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,” mentioned José Luis Orozco, also Cofounder and Co-CEO of AlphaCredit.
“AlphaCredit provides fast, cheap credit lines to individuals and small companies via a programmed deduction system, which have low default rates thus allowing for low interest rates. Their approach is superior to everyone who belongs to their ecosystems and why we are so excited to back these awesome entrepreneurs who are changing the landscape in Mexico and Colombia,” commented Paulo Passoni, Managing Investment Partner at SoftBank Group International.
AlphaCredit has over eight years of experience lending in the Mexican and Colombian markets, with over $1 billion USD in loans granted to its clients which remain underserved by traditional banks or without access to other forms of financing. Through its platforms: AXS Access, Check!, Alcanza Capital and Bontu, AlphaCredit© continues to offer tailor-made lending solutions to consumers and SMEs.
Commenting on the funding, José Luis Orozco, Cofounder of AlphaCredit said: “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”.