NEW YORK (Reuters) – Goldman Sachs Group, Inc., Point72 Ventures and others invested $42 million in Mexico-based online lender called Credijusto.com the companies said on Thursday.
FILE PHOTO: The ticker symbol and the logo of Goldman Sachs, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, New York, USA on December 18, 2018. REUTERS/Brendan McDermid
Established in the year 2015, Credijusto is from $90 million in loans and equipment leases to small businesses such as dry cleaners, and mechanical engineering in Mexico, according to a statement released by the company and its shareholders.
This is the first time that Goldman’s Principal Strategic Investments of the group, the venture capital arm of Steve Cohen’s investment firm, Point72 will have to be invested in Mexico’s fintech market is, and it’s a sign, they see potential for growth.
Mexico has experienced a steady increase in start-ups aimed at technology and mobile phones, sales of financial services to the poor and middle-class customers who do not use traditional banks.
Approximately 42 million people in mexico not have a bank account, because they charge steep fees, and there is no one business in the area, or because some of the banks have lost the trust and confidence of the public because of their past scandals.
The mexican government has said that it is looking for fintechs to play an important role in enhancing financial inclusion in the country.
Credijusto, the approach from the financial inclusion gap for small-and medium-sized enterprises, which comprise 99% of some of the world’s business, but only 15% of the loans issued by the banks, according to the statement.
“We have a big market that’s largely under-served and inefficient, and the modern credit can make sense of the data that are available,” Pete Casella, a partner of Point72 Ventures, said in an interview. “If you can make a better commitment to the customer and doing it faster then you’re going to capture it to share it.”
Companies will be able to wait five months to get approved for a loan with a Mexican bank, and the interest rate can be five times as much as that of the U.S. banks, according to the statement.
Credijusto will speed up the process of checking the credit worthiness of a company by looking at the invoices which have been submitted to the federal authorities.
The use of the traditional underwriting methods, and key in the invoice details, Credijusto a company’s expenditure and income patterns, and business partners before making the final decision on the issue of the loan, which typically ranges from $20,000 to over $500,000.
“This financing round is a validation of the Credijusto rapid growth, and will further support our goal of building a world-class technology company that stands for (corporate), access to credit,” he said Credijusto, co-Chief Executive of The Apoj.
The company plans to use the money in part to launch a credit card offer for you.
(This story corrects figure in headline and first sentence, after the company has been changed to a total of $42 million, $40 million)
Reporting by Elizabeth Dilts in New York; Editing by Matthew Lewis