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Kapital gets more of its own capital to help LatAm businesses monitor cash flow

Mexican fintech company Capital has raised a new round of capital, $20 million in Series A and $45 million in a line of credit, less than a year after securing an $8.6 million seed round.

Founded in 2020 by René Saul and Fernando Sandoval, the company started when the pair sold their previous business and wanted to create a platform that would be a one stop solution for small and medium-sized businesses in Latin America to meet all their financial needs. Can provide method. , including cash flow, loans and investments, all in one place.

“You need to organize the business first, and then it’s going to grow,” Saul said in an interview. “That’s what we do. We don’t just give you a corporate card or ask you to open your bank account – we give you a complete solution.

Saul said he and Sandoval noticed that companies lacked visibility into their finances: Many didn’t even know who owed them money or from whom they were supposed to collect money.

With Kapital, customers have a one-of-a-kind enterprise reporting platform where they can obtain credit cards, pay bills in advance, view cash flow and manage business expenses. In addition, the company has developed an algorithm that helps clients calculate future revenue, and if needed, will help with future loans “at the exact time you need it,” Saul said. Said.

Capital Y was part of Combinator’s Winter 2022 cohort, and last year expanded into Colombia and launched Capital Flex, a way to defer payments to suppliers and business invoices.

The company now works with more than 11,000 businesses, and while Saul declined to discuss revenue growth figures, he said he expects Capital to be profitable by this summer.

It also introduced full automation of its platform two months ago, for example, Capital’s platform automatically sends an invoice when a client executes a contract. Additionally, there are plans for further AI-powered products, Saul said.

This is where new capital comes in. Nia Partners and Tribe Capital co-led the Series A, which closed a month ago, and are joined by a slew of investors that includes Dropbox co-founder Arash Firdausi, Marbrook, Broom Ventures, FoundersX, Were. Cresset/True Capital Management, Pioneer Fund, Kube VC and MyAsia VC. Accial provided loan facility. In total, Capital raised $30 million in equity and $145 million in debt.

“We have underwritten over 100 fintech companies and almost none of them have been able to monetize,” Arjun Sethi, CEO of Tribe Capital, said via email. “Capital flipped the model on its head: use fintech as an acquisition channel. Not only that, their fintech products make money. Their path will not be easy, but they are on track to re-imagine SMB banking in Latin America. For they have a good chance.

Plans for the capital include product development and additional expansion in Colombia.

“The whole idea is how do you give the most important saaS to a company where you control the money,” Sandoval said in an interview. “And, how do you make it powerful because right now, legacy players control the money. We can provide all this data to understand the business and help customers make decisions.

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