202323 Jan

Zenfi takes in new funding to bring Mexicans some financial peace

Summary

Two out of three Mexicans have a subprime credit score with basically no tools to improve.Financial technology has exploded in Mexico and Latin America over the last couple of years, driven by startups and venture capitalists, in part because founders like Ch\xe1vez, whose background is in consumer financing, think there has to be an easier way to help people get financing without charging over a 100% annual percentage rate on credit card and personal costs. To put that in perspective, an average APR in the U.S. is around 19%.So seven years ago, Ch\xe1vez started building the free super app Zenfi, a financial health platform that he describes as if Credit Karma, SoFi, Marcus and Copilot Money had a kid, it would be us.A top feature of the platform is what he touts as the lowest interest rate in Mexico, an average of 19% APR. Cometa, Redwood Ventures, Pol\xedgono, Conny & Co. and an AngelList syndicate led by Peter Livingston participated as well.Ch\xe1vez intends to deploy the new funds into dozens of features in the pipeline, including debit and credit products. In addition, Ch\xe1vez will hire more people to add to Zenfis 60-person team.Right now, we have the biggest fintech lending licenses and personal loan company in Mexico and a benchmark for volume and portfolio quality, he added. We are trying to make a dent in the Mexican financial system and want to go from $100 million in loans to $2 billion, so we will build the internal capabilities around the team and infrastructure.

Source: Techcrunch

Funding

$8.5M
Amount
Jan 23 2023
Date
-
Investor
Zenfi
Company

Classifications

Companies