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Konfío reaches a valuation that exceeds one billion dollars and becomes the new Mexican unicorn

The fintech, which began operations in 2014, has granted loans to 35,000 companies and has diversified to provide payment and accounting solutions for SMEs.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.
You're reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on Alto Nivel

The Mexican fintech of small business loans, Konfío , reached 'unicorn' level with a valuation of $ 1.3 billion after closing a Series E capital-raising round for $ 100 million.

Cortesía de Konfío

The round extension was led by Tarsadia Capital and QED Investors, and was accompanied by Konfío's existing shareholders: Softbank, VEF, Kaszek Ventures, IFC and Lightrock .

Konfío, founded and led by David Arana , will use the funds to expand its reach and deepen its positioning in Mexico as the only comprehensive platform offering payment solutions, financial services and productivity software for SMEs.

In addition, the company will continue to seek acquisition and integration opportunities to help consolidate its offering as the operating system of choice for growing companies in Mexico.

“The market response to our strategy has been encouraging. Our risk and collection models enabled us to successfully navigate the peak of the pandemic and now support healthy 10% and 40% month-over-month growth in Konfío's working capital loan portfolio and number of users of our innovative corporate card, ”said David Arana, founder and director of the company, in a statement.

The fintech, which started operations in 2014, has granted loans to 35,000 companies and has diversified to provide payment and accounting solutions for small and medium-sized companies.

While in Mexico, credit to SMEs represents less than 4% of GDP , in countries such as Brazil, Colombia and Peru this indicator is between 6% and 8%.

“This opportunity, in terms of the total market for Konfío, represents 100 billion dollars in potential loans for growth companies in Mexico (from 43 billion dollars today), more than 4.3 billion dollars in income from payments services. digital services and more than a billion dollars in revenue from accounting management services, ”the company said.

Konfío becomes the new Mexican unicorn (a company that has a valuation of more than 1,000 million dollars) after the pre-owned car buying and selling platform Kavak , Bitso cryptocurrency , Clip payments and the house did GBM bag.