Mexico-based fintech startup Konfio has secured $100 million from Goldman Sachs reportedly after several rounds of discussions between the companies.

With the new capital, an unsecured working capital provider, Konfio plans to lend over $250 million to small and medium enterprises (SMEs) in the next 12 months.  The startup at present lends an average loan of $20,000 and plans to start using guarantees or collateral to pump up the amount of loan offered, as per various media reports.

Launched in 2014, Konfio has raised a total of $43 million in equity and $260 million in debt to date from investors including Jaguar Ventures, Kaszek Ventures, QED Investors, Accion Frontier, International Finance Corp., Vostok Emerging Finance, and Victory Park Capital Advisors.

Unlike the traditional waiting time of months, Konfio can disburse a loan within 24 hours if needed, owing to its technology used by the firm to analyze credit behavior. According to David Arana, CEO& founder of Konfio, the company offers interest rates which are half those charged by the traditional banks.

The company also offers technology to its clients to get insights into their own customers and help them with data organization. Konfio’s technology also enables it to keep non-performing loans under control, with the company’s delinquency rate at 4.8% in 2018, compared with 5.4% for the banking industry, as per a media report.

by Sheeba Bhagat Dawar
Market Analyst at IBS Intelligence