US-headquartered digital lending platform AlphaCredit agreed on Sunday to raise $125m in series B funding from a consortium of investors led by telecommunications and internet conglomerate SoftBank’s Latin America Fund.
The other participants in the round were not identified, AlphaCredit saying in a statement they include venture capital funds and existing investors. It has not revealed details of earlier equity funding but issued $300m in senior notes on the Singapore Stock Exchange in March 2018.
AlphaCredit issues loans to consumers and small businesses in Colombia and Mexico, utilising software that helps it assess the creditworthiness of a customer base largely made up of those underserved by traditional banks.
The company chiefly issues payroll deduction loans to government workers and provides invoice and lease financing for businesses. The transaction is subject to regulatory approval in Mexico.
Paulo Passoni, managing investment partner at SoftBank, said: “AlphaCredit provides fast, cheap credit lines to individuals and small companies via a programmed deduction system, which have low default rates thus allowing for low interest rates.
“Their approach is superior to everyone who belongs to their ecosystems and why we are so excited to back these awesome entrepreneurs who are changing the landscape in Mexico and Colombia.”
