There’s one other entrant within the startup race to offer monetary companies to Latin America’s small and medium-sized companies.
Monetary companies have been an enormous alternative for startups popping out of Brazil, Colombia, and Mexico lately, and now Xepelin, a brand new firm from Chile, is seeking to be a part of the fray.
Xepelin’s founders, Sebastian Kreis and Guillermo Molina Carvallo, launched their firm with the imaginative and prescient of making a brand new type of on-line financial institution for Latin America’s small companies.
The corporate’s pitch to enterprise homeowners will depend on a variation of the lending instrument often called factoring, the place small companies can take out loans based mostly on the earnings they’re anticipating to obtain. In Latin America, the place small companies have restricted avenues to conventional loans, based on Kreis, factoring represents a novel answer.
Xepelin already has a multi-million greenback credit score line on the books along with a small spherical of preliminary financing and the corporate shall be utilizing each the credit score line to convey prospects in and the fairness infusion to proceed creating income administration and useful resource planning instruments for its prospects.
Beginning in Chile and Mexico, the place the 2 founders have an extended historical past within the monetary companies world, the corporate expects to change into a participant throughout the continent according to the expansion of personal debt companies for small companies.
Different startups, like Portal Finance and Marco Monetary are additionally focusing on the lending markets. Like Xepelin, the 2 firms have secured a number of lines of credit to assist their companies.
Kreis estimates that debt financing in Latin America may develop to 70 occasions its present measurement given modifications to the regulatory setting and growing demand for digital monetary companies over the following decade.
Within the first stage we developed the brand new customary for SMBs’ working capital financing in LatAm, specializing in our shopper’s consumer expertise, monetary wants (not solely transactions) and the best way they handle their working capital. Xepelin offers SMBs entry to capital in a simple and environment friendly means.
Mexico is an efficient indicator of the potential measurement of the market, based on Kreis. There solely 300,000 companies — out of greater than 6 million registered firms — have gross sales and account executives providing income administration and credit score strains.
These cash managers ahve a portfolio of 300 firms that they work with, whereas mid-market firms may go with as many as 1,000 to five,000 small companies.
To this point, Xepelin has raised $3.5 million in early stage funding from traders together with Oskar Hejertonsson, Manutara Ventures, Ignacio Canals, Gonzalo Rojas, FJ Labs, Diego Fleischmann, and Daniel Undurraga. The latest capital infusion, a $2.5 million spherical led by Impression Concepts VC closed earlier this month.
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