It is no secret that individuals and businesses have notoriously had a challenge accessing financial tools in Mexico, such as personal and SME credit lines. Here are a few data points, 86% of transactions are still in cash, and only 37% of adults in the Mexico have a bank account (Economist). As for SMEs, Kapital estimates that around 50% do not have access to "traditional bank financing do to a lack of credit history".
Enter Kapital
Team
Rene Saul & Fernando Sandoval
What is Kapital?
Kapital is a financial platform for SMEs aimed to provide a wide range of financial tools. Some tools include, but are not limited to: cash flow management systems, credit line access, and personalized algorithms to notify your SME if there is a need for loan. Other features include automated invoicing for collections on goods and services provided.
Most Recent Funding
Series B, 40M 2023 led by Tribe Capital including MS&AD Ventures, Tru Arrow Partners
Series A, 20M 2023, with a 45m debt facility (Techcrunch)
Market Opportunity
Kapital growth has been remarkable. Since inception in 202o, Kapital has grown to serve over 11,000 businesses in Latin America and just announced their expansion into Columbia (FintechNexus).
“We came to Colombia to give companies that have not had access to financial products the opportunity to grow, providing them with credit and debit and business banking where they have visibility and control of their cash flow" - Fernando Sandoval, Kapital CFO (Latamlist).
Kapital's ability to penetrate the niche SME market is impressive to date, but will this growth continue in other Latin American markets? A key indicator will be whether Kapital can keep maintaining the control of cash, while generating enough cash flow as they scale.
The question remains, how will local incumbents (traditional banks) respond?
