Goldman Boosts Credit Line for Mexico’s Konfio to $160 Million
(Bloomberg) -- Goldman Sachs Group Inc is increasing a credit line to Mexican financial technology firm Konfio Ltd. to support the startup in its bid to disrupt traditional lending practices in Latin America’s second-largest economy.
Goldman will provide $160 million of support for Konfio to draw from, up from an earlier pledge of $100 million, the Mexico City-based company said in an statement. The credit extension will allow Konfio to increase the number of loans it gives to small and medium-sized companies.
Konfio, which is backed by SoftBank Group Corp., has granted nearly 50,000 loans since its founding in 2013, with about 7,000 currently active. The bigger credit line from Goldman follows a a 1.3 billion peso ($64 million) loan in October from the Inter-American Investment Corp. to restart lending after the pandemic forced it to reduce new financing in order to provide debt relief for existing customers.
Konfio clients can fill out an application in as little as eight minutes and can have the money in their pocket in the following 24 hours without any collateral. These businesses are often under served by traditional banks.
“Konfio is changing the way Mexican SMEs access credit, bringing to the market an agile and innovative process based on powerful proprietary technology,” Goldman spokeswoman Maeve DuVally said in the statement.
About 70% of the fund’s investments will be in Brazil, but opportunities also exist in Mexico, Argentina and Colombia, he said.
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