Buying a car is a treacherous process for most in Mexico
The Auto Financing process is not helping either...
Enter Nexu.
As of 2023, Nexu has over 120 employees and has reached $1 million in monthly recurring revenue (MRR) and serves 70 dealerships. The company has also provided loans to over 2,000 customers. (Contxto)
Founding Team
What is Nexu?
Nexu, founded in 2018, is a digital platform that provides financial services for the automotive aftermarket industry. Nexu offers a variety of services, including pre-approved loans, insurance, and warranty products. Currently, Fernardo Gomez, Nexu’s co-founder, states that only around 30% of applicants who apply for auto financing in Mexico actually obtain it, leaving a large gap in the auto financing market in Mexico.
Nexu's Car Buying Process
Nexu's auto financing process step by step:
- Pre-authorization - Fast Response (5 minutes): Visit Nexu experts at an agency or register online. Nexu pre-approves requests in less than 3 seconds.
- Approval - Digital Efficiency (1-2 hours): Complete the digital process on any device or upload documents manually. Nexu will contact you to verify the information.
- Contract Signing - your schedule, your choice (1 day): After the initial investment, Nexu's trusted partner will deliver the contract to your doorstep for signing.
- Car Delivery - Ready to roll (1-3 days): Nexu thoroughly prepares the car for you to enjoy a brand-new driving experience (Contxto).
“Everything is done through a platform that offers a credit response in real time. Unlike filling out an application and sending documents to receive a response, with Nexu you enter customer data on our platform and in real time the distributor can have a response in order to complete the sale with the customer,”- Abdon Nacif (CEO Nexu)
Funding
Nexu has raised a total funding amount of $73M.
2023, $20M (Series B) led by Valor Capital Group including Ivernet Holding SAPI de CV, Gilgamesh Ventures, FJ Labs, FinTech Collective,Endeavor Catalyst, Clocktower Technology Ventures, CAPEM Mexico, Altos Ventures.
2022, $50M (Series A) including Wollef Ventures, Tresalia Capital, SqaureOne Capital, Gilgamesh Ventures, FJ Labs, Clocktower Technology Ventures, CAPEM (Grupo Capital Empresarial), Architect Capital, Altos Ventures.
2021, undisclosed amount (Series A) including SqaureOne Capital.
2021, undisclosed amount (Venture series unknown) including SquareOne Capital.
2020, $1.6M (Seed) including Y Combinator, TwentyTwo VC, Tresalia Capital, Soma Capital, Outbound Ventures, Eric Rea, Dennis Steele, Arrebol Capital.
2017, $1.4M (Seed) led by Wollef Ventures.
Market Opportunity
Nexu is well-positioned to capitalize on the growing demand for financing opportunities in Mexico’s automotive aftermarket industry with only 2% of used vehicles and 60% of new vehicles able to obtain auto financing for purchases. Nexu’s proprietary risk analysis allows Nexu to offer various loan terms to a larger customer base compared to traditional lenders.
As with many startups attempting to enter a market controlled by large incumbents, Nexu has capitalized on efficiency. Using Nexu the whole purchasing process takes around 3 days, while the traditional financing companies at auto dealerships take around 3 days to just respond.
In 2022, it was estimated that there were more than 55m motor vehicles in Mexico (Statista).
