The Venture Codex

Participated · Series A · Feb 2023

Vexi offers a credit-card product (issued through American Express) focused on bringing lower-cost credit to underserved, often informal-economy, consumers in Mexico. The company does not yet offer checking or savings accounts and runs its own issuing and processing (no third-party issuers/processors), which it says boosts interchange revenue. Its product includes interest-free installments, cash back, purchase insurance and tiered credit with interest rates reported in the range of 29%–79%; Vexi uses a homegrown credit-scoring system to increase limits and lower rates as customers demonstrate creditworthiness. Roughly 75% of cardholders are 18–35, average customer income is $600–$800 per month, nearly 60% are self-employed, and Vexi has issued about 850,000 cards after 2.5 million applications. The company reports revenue grew 4x over the past 24 months and says it reached those application and issuance figures with less than $4M in equity before this Series A. Vexi plans to grow its customer base, hire talent, improve its proprietary tech stack and risk algorithms, and eventually expand beyond Mexico into other parts of Latin America.