Tienda Pago raises $12m to help small convenience stores grow their business
By Edlyn Cardoza
Tienda Pago, the short-term credits lender, based in Peru and Mexico, has announced closing a Series B investment led by the Women’s World Banking Asset Management and IDC Ventures for $12 million.
“We are very excited to partner with Tienda Pago on this important journey and provide access to finance for small business owners who are the cornerstone of economic development in the region,” said Yrenilsa Lopez, Principal Investment Officer at Women’s World Banking Asset Management.
Tienda Pago’s innovative partnerships, technology, and process have attracted impact investors and traditional VCs. Women’s World Banking Asset Management and IDC Ventures led this Series B investment round in which Alumni Fund contributed as a new investor. Current investors Kaszek, QED, Agrega Partners, Accion Venture Lab, and Oiko Credit also participated in this round.
“Small businesses are fundamental drivers of economic development in Latin America, yet continue to lack access to finance,” says Alejandro Rodriguez, Partner at IDC Ventures. “SMEs receive only 12% of total formal credit in the region, though they represent the vast majority of businesses and the majority of employment. Tienda Pago works with product distributors to provide seamless cashless transactions that benefit both store owners and suppliers, providing value at both ends of the supply chain.”
Tienda Pago provides micro, small, and medium enterprises with working capital via short-term stock financing on its digital platform. According to the Peruvian Minister for Production, 99.5% of companies in the country are SMEs. In Mexico, SMEs represent 70% of formal employment. Tienda Pago helps financial inclusion in the region by providing credit to unserved and underserved SMEs, especially women-owned.
“Tienda Pago’s business model helps entrepreneurs grow in the region and make an impact on our community,” said Dan Cohen, CEO and founder of Tienda Pago. “75% of SMEs can’t buy all the stock they need to serve their clients, which means a loss of opportunities, and just half of the stores have sufficient access to financial services. This is why Tienda Pago is essential to serve the financial needs of convenience stores in developing regions.”
Tienda Pago has partnered with Consumer Product Goods to finance their stock for Convenience Stores to help them reduce trust risks while increasing sales and improving customer experience through frictionless operations (signup, collection, and default management).
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