Fintech

Aplazo uses “buy now, pay later” as a springboard to financial ubiquity in Mexico

Published

10 months ago

14 May, 2024

Aplazo uses “buy now, pay later” as a springboard to financial ubiquity in Mexico

Buy now, pay later services have become so ubiquitous that BNPL might as well just be another way of saying “debt.” But in Mexico, where the BNPL platform is located Aplazo work, a great one unbanked population makes BNPL more like a cash alternative.

The four-year-old Mexican fintech startup facilitates split payments to offline and online merchants even when the buyer doesn’t have a credit card.

For end users, Aplazo offers a virtual card that allows them to buy now and pay later at many stores. A recent $45 million Series B round led by QED Investors should help it further expand its reach, both virtual and physical.

While BNPL is often associated with online merchants, e-commerce is still limited in Mexico, and Aplazo says in-store transactions account for more than half of its business. Offering this option is a way for stores to increase sales and loyalty, and it seems to be working: the company says its revenue has tripled in the last year.

Mike Packer, the partner in charge of Latin America at QED, highlighted Aplazo’s progress to date in a conversation with TechCrunch. “There is a huge competitive advantage in the network and product they have built. They were able to have tons of transactions, a significant amount of data, relationships with almost 10,000 merchants… This continues to compound over time.”

The company has also been able to use data and technology to limit credit losses despite its growth, Aplazo CEO Angel Peña told TechCrunch. “The AI of the entire organization is embedded in the DNA and it’s something like this [brought] extraordinary efficiency in the last year. For context, we have cut our default rates in half [during] In the same period, we have more than tripled the business. This was certainly possible thanks to our ability to use artificial intelligence to underwrite every transaction.”

Unlike the United States, Aplazo cannot always rely on credit history; according to the company, 40% of its users have none. This makes Mexico difficult for international BNPL operators to enter, even when they have a strong market position in other countries, as Affirm or Klarna do.

However, Aplazo has competitors in Mexico, such as fellow provider BNPL Kueskithat recently collaborated with Amazon. Others, like Fintoc, Colombian account-to-account payments startupthey are taking a different approach, but with the same goal of reducing transaction fees and friction for merchants.

For Aplazo, BNPL sounds more like a means to an end, a stepping stone to grander fintech ambitions.

“Our vision is to become the preferred payment method in Mexico; and because of our position in the market, where we serve underserved users and work with underserved merchants, we see many opportunities to broaden the relationship with both merchants and consumers to create more value for them,” said Peña.

However, the company is growing cautiously and says it is close to breaking even on cash flow over the past two months, with a stable headcount of 130 people. “We are very aware of the efficiency of the company,” Peña said.

This is also in line with what VCs want to see these days, and probably explains why Aplazo managed to raise a large round and increase its valuation despite the current environment.

Brazilian VC Andre Maciel, whose company Capital Fox participated in the round as a new investor, judging in a statement that “Aplazo’s growth profile and unit economics not only make the company stand out among all other competitors we have seen in the region, but comfortably position the company to ongoing self-financed growth forward.”

Existing investors Oak HC/FT, Kaszek and Picus Capital also participated in the round, adding to the bridge financing raised by the company since its founding. $27 million Series A in 2021. In total, the company has secured $100 million in equity capital and $75 million in committed debt.

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Related Topics:Aplazo BNPL Mexico QED Investors

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We are the editorial team of FinCrypto, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypto, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Fintech

Lloyds and Nationwide invest in Scottish fintech AI Aveni

Published

8 months ago

29 July, 2024

FinCrypto Staff

Lloyds and Nationwide invest in Scottish AI fintech Aveni

Lloyds Banking Group and Nationwide have joined an £11m Series A funding round in Scottish artificial intelligence fintech Aveni.

The investment is led by Puma Private Equity with additional participation from Par Equity.

Aveni creates AI products specifically designed to streamline workflows in the financial services industry by analyzing documents and meetings across a range of operational functions, with a focus on financial advisory services and consumer compliance.

The cash injection will help fund the development of a new product, FinLLM, a large-scale language model created specifically for the financial sector in partnership with Lloyds and Nationwide.

Joseph Twigg, CEO of Aveni, explains: “The financial services industry doesn’t need AI models that can quote Shakespeare, it needs AI models that offer transparency, trust and, most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, vetted by financial services experts for specific financial services use cases.

“FinLLM’s goal is to set a new standard for the controlled, responsible and ethical adoption of generative AI, outperforming all other generic models in our selected financial services use cases.”

Robin Scher, head of fintech investment at Lloyds Banking Group, says the development programme offers a “massive opportunity” for the financial services industry by streamlining operations and improving customer experience.

“We look forward to supporting Aveni’s growth as we invest in their vision of developing FinLLM together with partners. Our collaboration aims to establish Aveni as a forerunner in AI adoption in the industry, while maintaining a focus on responsible use and customer centricity,” he said.

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Fintech

Fairexpay: Risk consultancy White Matter Advisory acquires 90% stake in fintech Fairexpay

Published

8 months ago

29 July, 2024

FinCrypto Staff

Treasury Risk Consulting Firm White Matter Alert On Monday he announced the acquisition of a 90% stake in the fintech startup Fair payment for an undisclosed amount. The acquisition will help White Matter Advisory expand its portfolio in the area of cross-border remittance and fundraising services, a statement said. White Matter Advisory, which operates under the name SaveDesk (White Matter Advisory India Pvt Ltd), is engaged in the treasury risk advisory business. It oversees funds under management (FUM) totaling $8 billion, offering advisory services to a wide range of clients.

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White Matter Advisory, based in Bangalore, helps companies navigate the complexities of treasury and risk management.

Fairexpay, authorised by the Reserve Bank of India (RBI) under Cohort 2 of the Liberalised Remittance Scheme (LRS) Regulatory Sandbox, boasts features such as best-in-class exchange rates, 24-hour processing times and full security compliance.

“With this acquisition, White Matter Advisory will leverage Fairexpay’s advanced technology platform and regulatory approvals to enhance its services to its clients,” the release reads.

The integration of Fairexpay’s capabilities should provide White Matter Advisory with a competitive advantage in the cross-border remittance and fundraising market, he added.

The release also states that by integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

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Fintech

Rakuten Delays FinTech Business Reorganization to 2025

Published

8 months ago

29 July, 2024

FinCrypto Staff

Rakuten (Japan:4755) has released an update.

Rakuten Group, Inc. and Rakuten Bank, Ltd. announced a delay in the reorganization of Rakuten’s FinTech Business, moving the target date from October 2024 to January 2025. The delay is to allow for a more comprehensive review, taking into account regulatory, shareholder interests and the group’s optimal structure for growth. There are no anticipated changes to Rakuten Bank’s reorganization objectives, structure or listing status outside of the revised timeline.

For more insights on JP:4755 stock, check out TipRanks Stock Analysis Page.

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Fintech

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

Published

8 months ago

29 July, 2024

FinCrypto Staff

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

You are reading Entrepreneur India, an international franchise of Entrepreneur Media.

White Matter Advisory, which operates under the name SaveDesk in India, has announced that it is acquiring a 90% stake in fintech startup Fairexpay for an undisclosed amount.

This strategic move aims to strengthen White Matter Advisory’s portfolio in cross-border remittance and fundraising services.

By integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

White Matter Advisory, known for its treasury risk advisory services, manages funds under management (FUM) totaling USD 8 billion.

Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddy and Piuesh Daga, White Matter Advisory helps companies effectively manage the complexities of treasury and risk management.

The SaveDesk platform offering includes a SaaS-based FX market data platform with real-time feeds for over 100 currencies, bank cost optimization services, customized treasury risk management solutions, and compliance guidance for the Foreign Exchange Management Act (FEMA) and other trade regulations.

Fairexpay is a global aggregation platform offering competitive currency exchange rates from numerous exchange partners worldwide. Catering to both private and corporate customers, Fairexpay provides seamless money transfer solutions for education, travel and immigration, as well as simplifying cross-border payments via API and white-label solutions for businesses. Key features include competitive currency exchange rates, 24-hour processing times, extensive currency coverage of over 30 currencies in more than 200 countries, and secure, RBI-compliant transactions.

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