AWS Startups Blog

Online-lending Platform Konfío Helps LATAM SMEs Get Funding

As some economies develop, small businesses that also develop and grow can sometimes be left out in the rain when searching for capital. Banks frequently look for collateral to be posted with loans, which can be difficult for smaller companies. This gap in offering is exactly where many startups are flourishing via assessing companies credit statuses through atypical methods or data, and providing financing to the previously underserved.

Konfío, a fintech startup founded in 2013, does just that for micro-businesses throughout Latin America. This opportunity was something the team observed in their home country of Mexico. As Francisco Padilla, Co-founder and CTO of Konfío, puts it, “The concept of unsecured credit for businesses doesn’t really exist in Mexico. Because of this, there is a gap where 95% of small businesses are looking to attain funding through alternative means.”

But if a business doesn’t have assets to secure a loan, what other indicators can be looked at to judge its potential of repayment? For Konfío, they believe that analyzing business transaction data gives them enough information to decide, with decisions coming within 24 hours.

Along with supporting the small businesses in and around its home country, Konfío prides itself on being a flagship company for the growing Mexican startup community. This commitment to its home country can be seen in its cap table as well, with the vast majority of investors hailing from Mexico. To date, Konfío has secured more than $100 million in debt and equity funding.

So what’s next for the online-lending platform? Continued rapid growth, and managing that growth, per Padilla. “When a company grows so quickly, you need to change your processes and organization, sooner rather than later. We’re estimating that Konfío will be doubling its engineering team over the next 12 months, so we want to make sure to have processes in place to enable newcomers to come and quickly make an impact.”