Konfio said May 24 that it raised $8 million from the Accion Frontier Inclusion Fund managed by Quona Capital, QED Investors, Kaszek Ventures, and Jaguar Ventures. Konfio, of Mexico City, is an online lending platform.
MEXICO CITY, May 24, 2016 /PRNewswire/ — Konfio (www.konfio.mx), an online Mexican lending platform, announced a new round of investment for $8 million from the Accion Frontier Inclusion Fundmanaged by Quona Capital, QED Investors, Kaszek Ventures, and Jaguar Ventures that will allow the lender to strengthen its operations, grow its user base, and adopt corporate best practices.
Konfio grants small businesses loans of up to 150,000 pesos to help them grow their operations and develop their businesses, with competitive rates and through an online process.
“By leveraging technology and big data analytics, Konfio complements traditional financial analysis and streamlines the loan application process, providing convenience and affordability to customers who are creditworthy but historically underserved by traditional banking,” said Miguel Herrera, partner at Quona Capital, which manages the Accion Frontier Inclusion Fund, the first global fintech fund for the unbanked.
During its first two years of operations, more than 200,000 businesses across Mexico approached Konfio to apply for a loan. Konfio plans to expand its platform to thousands more users.
“The fintech sector is one of the great opportunities for the development of the digital economy both inLatin America and the world. The financially neglected market in Mexico alone has an estimated value often billion dollars. We are very interested in harnessing the potential of this industry. Konfío is our first investment in Mexico, and we are very pleased to be part of their development,”Bill Cilluffo, partner atQED Investors, commented.
“There is a great need for financing for small businesses. This sector represents 95 percent of businesses inMexico and is the backbone of the national economy, but it has not been a priority for large financial institutions. This new round of funding is a validation of our business model and allows us to integrate partners who contribute not only capital, but also extensive knowledge, experience, and mentoring to grow and continue improving our products and customer experience,” said David Arana, founder and CEO ofKonfio.
Eric Pérez-Grovas, cofounder of Jaguar Ventures, the only Mexican investment fund involved with this start-up, said, “Konfio has the potential to be one of the biggest successes in the fintech industry in Latin America, to promote its development, lead its market, andnurture the entrepreneurial ecosystem in the region. At Jaguar we are very pleased to have participated in the seed investment and to continue accompanying Konfio in its growth trajectory.”
“Konfio has a talented and passionate team with a unique technology and data-driven approach. We are convinced the company will generate a great impact on the way in which small businesses obtain financing in Mexico,” said Nicolas Szekasy, founding partner of Kaszek Ventures.
Konfio’s investors come with a wide range of experience. Quona Capital manages the Accion Frontier Inclusion Fund, the first global fintech fund for the unbanked. QED Investors, created by the cofounders of Capital One, is a pioneer in risk management and invests in fintech companies; Konfio is QED’s first holding in Mexico. Kaszek Ventures brings the cofounders of MercadoLibre, Hernán Kazah and Nicolás Szekasy, who have invested in more than 40 companies across Latin America.
These investors add to an initial investment from Accion Venture Lab – an initiative providing seed capital and management services to early-stage innovative start-ups that expand financial access for the underserved – and Jaguar Ventures, a venture capital fund focused on early stage Internet ventures in Latin America that is also involved in this new round of funding.
Konfio is an online lending platform that helps micro-businesses in Latin America that lack access to credit to obtain convenient and affordable loans, thanks to a propriety algorithm that uses technology to measure creditworthiness. Their mission is to boost the regional economy with productive loans for young promising businesses that need it the most.
About the Accion Frontier Inclusion Fund and Quona Capital
The Accion Frontier Inclusion Fund, managed by Quona Capital, is the first global emerging markets fintech fund for the un and underbanked, investing in young innovative financial technology and services companies that promote financial inclusion for the two billion people around the world who lack access to basic financial services. The fund is sponsored by Accion, a global leader in inclusive finance with a rich history of “double-bottom line” investing, where its impact investments create positive economic and social returns. For more information, visit www.quona.com.
About QED Investors
QED Investors is a boutique venture capital firm that actively supports high-growth businesses that use information to compete and win. Support is tailored to the specific needs of each portfolio company typically providing a combination of both capital and capability. QED’s Founding Partners bring 60+ years of hands-on operational expertise building financial services enterprises, having come from Capital One, and currently invest broadly in the financial services ecosystem as well as in disruptive data-driven customer acquisition businesses. For more information, visit www.qedinvestors.com.
About Kaszek Ventures
Kaszek Ventures is the leading Latin American venture capital firm investing in high-impact tech entrepreneurs. Led by Nicolas Szekasy, MercadoLibre’s former CFO, and Hernan Kazah, MercadoLibre’s co-founder, the firm actively supports portfolio companies through value-added strategic guidance and hands-on operational help. Both have unique expertise in facing the challenges of driving a technology firm from its initial startup operations all the way to getting listed on the NASDAQ. Additionally, they have had significantly impacted the development of the entrepreneurial ecosystem in Latin America. For more information, visit www.kaszek.com.
About Jaguar Ventures
Jaguar Ventures is a venture capital fund focused on early stage Internet ventures in Latin America. Co-founded by Eric Perez-Grovas and Cristobal Perdomo, two well-known and highly regarded Internet entrepreneurs, with previous experience in important Internet companies such as MercadoLibre, Navent and Groupalia. Jaguar invests in innovative companies with the potential to transform their industries and is the only fund in Mexico and the region exclusively focused on Internet ventures. For more information please visit www.jaguarvc.com.