Digitt secures $50m in debt facility from CoVenture Management

By Gloria Mathias

Digitt, a FinTech offering credit card debt refinancing for prime borrowers in Mexico, has announced the launch of a $50 million debt facility with CoVenture Management, LLC, a private credit and alternative asset manager based in New York.

The facility will help expand Digitt’s existing debt refinancing product, expand its product offering and deepen the company’s relationship with its growing customer base. Digitt also marks CoVenture’s first direct investment in Latin America.

Digitt was founded by Manuel Alvarez and David García after David experienced credit card debt difficulties firsthand. In Mexico and most of Latin America, predatory credit card lending is a substantial issue, even for creditworthy customers. Even those with thick credit files, verifiable income, stable jobs and a proven willingness and ability to pay are subject to interest rates between 60 and 150%.

While most consumer FinTech companies in the region target the unbanked population, these low-risk customers generate over $20 billion per year in interest revenue for the top five banks in Mexico alone.

Digitt previously raised $4.8 million in equity financing from VC investors such as Clocktower Technology Ventures, FJ Labs, Gilgamesh Ventures, Yes VC, Angel Ventures Mexico and New Stack Ventures, together with renowned angel investors such as former SoFi President Saturnino Fanlo.

“Partnering with CoVenture marks a key milestone in our journey,”  said David García, CEO of Digitt. “We have built a strong foundation at Digitt that resulted in receiving 9 different offers from top players in the space, but given CoVenture’s reputation, experience, flexibility and ability to scale, we’re thrilled about working with them.”

“We are excited to be entering the Latin American market with Digitt and supporting David and his team’s continued growth on a product that already has an established track record and is actively solving an issue in Mexico’s consumer finance ecosystem,” added Lei Tie, Managing Director, CoVenture.

Digitt expects to triple its portfolio over the next 12 months, enabling more than 15,000 people in Mexico to pay off predatory debt and finally have access to affordable, flexible and predictable credit products.