Mexico-based business financing platform Konfio completed a $125m series E round featuring internet and telecommunications group SoftBank.
The round was led by private equity firm Lightrock and included $20m from Vostok Emerging Finance (VEF) and additional cash from Kaszek Ventures, QED Investors, Tarsadia Capital and the World Bank’s International Finance Corporation (IFC) vehicle.
Konfio runs an online platform that provides financing to small and medium-sized businesses at better rates than conventional business loans offered by Mexican banks.
The platform uses artificial intelligence technology and a proprietary algorithm to measure creditworthiness and ensure applicants can get approval in a matter of minutes.
The financing will support Konfio’s merger and acquisition strategy, which involves acquiring companies that can be integrated into its fintech ecosystem and broaden its offering. It will also fund further development of financial solutions for growing businesses.
The company had previously raised $100m in series D funding from SoftBank’s $5bn Latin America-focused Innovation Fund in late 2019.
Konfio had received $8m in a 2016 series A round led by Accion Frontier Inclusion Fund with participation from QED Investors, Kaszek Ventures, Quona Capital and Jaguar Ventures, and $10m in a 2017 series B featuring IFC, QED Investors, Kaszek Ventures, Quona Capital and Jaguar Ventures.
Subsequently, the company completed a $25m series C round in 2018 led by VEF and backed by IFC, QED Investors, Kaszek Ventures, Quona Capital and Jaguar Ventures. That equity funding was raised alongside $60m in debt financing from IFC and Victory Park Capital Advisors.