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Konfio has become the latest Latin American fintech Goldman Sachs has bet on, reports Bloomberg. The credit line will help the startup, which provides small-and medium-sized businesses (SMBs) with unsecured working capital, to lend around $250 million in the next year, founder and CEO David Arana told Bloomberg.
Currently, Konfio’s average loan size is about $20,000, and it plans to expand this by using guarantees or collateral. Beyond loans, the company also provides SMBs with technology aimed at helping them better understand their businesses, according to Arana.
Mexican SMB have long struggled to access capital — giving Konfio a long runway for growth in the country. Just around one-third of SMBs in Mexico have access to banking loans, according to a central bank report cited by euromoney, despite SMBs accounting for close to 9 out of 10 businesses in the region.
Moreover, despite the credit market to these businesses equating around $100 billion, incumbents have been pulling away from the segment in recent years, Arana says. …read more
Source:: Businessinsider – Finance