Konfio Limited announced it received $235,000,000 in funding and an additional $110,000,000 in a second and final tranche. The company said it amended the terms of the transaction prior to closing. The transaction was closed on September 29, 2021. The tranche was co-led by Tarsadia Capital, LLC and QED Investors, LLC. Participants included SoftBank Investment Advisers (UK) Limited, VEF AB (Publ), Kaszek Management S.A., International Finance Corporation, and Lightrock LLP. The round was raised at a valuation of $1,300,000,000. Konfio provides unsecured working capital loans to Mexican SMEs, using proprietary technology to monitor credit behavior and make fast disbursements (often within 24 hours). Its average loan size has been about $20,000, and management aims to expand into collateral-backed lending to offer larger loans. The firm says it uses data and advanced technology to identify high-potential businesses, and it has updated HR and gender-equality policies while planning a market strategy based on gender. Konfio has noted the Coronavirus crisis has hit SMEs especially hard and framed the new financing as support for those businesses. The company views the Mexican SME lending market as having substantial upside versus current bank lending levels. No revenue or user metrics were provided in the article. Konfio offers a data-first credit underwriting service that enables quick credit assessment and lending for SMBs. Its platform can disburse credit in as little as one day, versus the months-long approval processes of traditional banks that often require collateral. The company targets small and medium-sized businesses in Mexico, filling a gap as traditional banks retreat from SME lending. Three months after a $100M loan from Goldman Sachs, SoftBank invested another $100M in Konfio, leaving it among the most heavily funded fintechs in Mexico. The investment aligns with SoftBank’s broader Latin America strategy and apparent interest in consumer and SMB data across the region. Konfio is a digital-first online lender that provides unsecured term loans to small and medium-sized enterprises in Mexico. It leverages technology and big data analytics to complement traditional financial analysis and streamline the loan application process. The company targets the top end of the small-business credit segment, a market it views as a roughly $45bn opportunity within Mexico’s broader SME landscape. The articles note Mexico has a population of about 127 million and roughly 7 million SMEs, the majority of which are very small businesses. Konfio was founded in 2014 and is headquartered in Mexico City. Management says the company has shown strong traction in the prior twelve months and plans to invest in its technology stack and to scale beyond unsecured business term loans with new products for underbanked SMEs. Konfio offers technology-based lending focused on micro-businesses and small- and medium-sized enterprises in Mexico. Its underwriting combines data from social media and online payments with traditional data to make real-time loan approvals. The company’s first product, launched in 2014, is a term loan with fixed installments and a maximum amount of $50,000. Konfio says it has provided loans to 50,000 families. The company estimates the market for small business loans in Mexico could be as high as $20 billion and positions itself to serve that underserved demand. Konfio’s leadership highlights the firm’s role in generating jobs and expanding access to capital for entrepreneurs. The business recently secured new funding to support its growth.

Total raised

$436M

Funding rounds

6

Latest round

Equity

Latest activity

Sep 2021