Mexico continues to be among the countries seeing the most growth in their fintech ecosystem this year.
Fairplay, a Mexican e-commerce revenue-based financing platform, recently announced that it had secured a $100 million credit line from Community Investment Management LLC (CIM).
Fairplay provides technology and financing solutions for e-commerce businesses and marketplace sellers in Mexico.
With this new investment — in whose modality several unicorns in the region, such as Kavak, Rappi, and Clara, have already participated — the fintech will seek to expand its financial products to provide fast, flexible, and fair financing options for an underserved and high-growth market in Mexico and the rest of the continent.
Empowering small entrepreneurs with a fair financing platform
“We are very happy to have Community Investment Management LLC (“CIM”) as a partner in our mission to empower the growth of entrepreneurs fairly and continue to build technology and financial products that accelerate the competitive capabilities of entrepreneurs,” said Manolo Atala, co-founder, and CEO of Fairplay, in a statement.
According to the executive, “This line of credit will allow us to scale our platform and provide even more flexible financing options to an underserved but high-growth market in the country. We are also grateful for the continued support of our internal investors, who share our vision of making Latin America more equitable and prosperous,” he added.
In addition to this recent credit line, Fairplay has secured $8.5 million in capital from other relevant funds, such as Dila Capital, Elevar Equity, Speedinvest, Nazca, and Kayyak Ventures.
Fairplay works with several industry-leading partners, such as Figure, Octane, and Splash Financial.
Helping grow the underserved business ecosystem
In recent years, the company has been looking to refine its financing platform to help small entrepreneurs who cannot seek loans from traditional banks.
The fintech’s platform looks to offer previously unsuccessful loan applicants a second glance through fine-tuned algorithms that consider populations that have not historically had access to credit.
In this way, financial institutions partnered with Fairplay have the opportunity to make more informed and fairer decisions, increasing their revenue and, in turn, decreasing risk while opening doors for new customers.
Since 2019, the year it was founded, Fairplay has already originated more than $125 million in financing to hundreds of businesses, establishing itself as one of the most innovative lending solutions in Latin America.
Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.
He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.