Banking Platform Kapital Raises $165 Million

Kapital, the company that manages the banking platform, announced that it has managed to raise new capital for $165 million.

Banking Platform Kapital Raises $165 Million

The mentioned firm is based in Mexico City. Last Thursday, December 14, this company published a press release, which contains information that it managed to receive $40 million following the results of the Series B equity financing round. The firm raised another $125 million in debt financing.

The company announced its intention to use the funds received to invest in its cross-border offering. Also, due to the raised money, the firm plans to expand its product line.

The company’s press release notes that Kapital is creating a vertically integrated technology platform that, in terms of functionality, goes beyond the operational space formed by existing lending solutions, credit card applying algorithms, billing mechanisms, and management tools of finances related to the expense category. The firm’s platform, as part of its work, extends to the sphere of payroll, benefits, and treasury accounts services.

Kapital uses arrays of data and artificial intelligence technologies to provide corporate functional solutions to representatives of small and medium-sized businesses in Latin America. The company notes that in this region, such offers are in most cases available only to large corporations. Kapital’s solution provides small and medium-sized businesses with the opportunity to see their cash flows and manage them on information panels in real time.

The company reported on the use of machine intelligence technologies as part of its activities to provide lending services in the specified business sector. The firm notes that in Mexico, small and medium-sized commercial organizations account for only 10.5% of bank loans.

Kapital co-founder and CEO Rene Saul said the latest round of financing will move the company forward. According to him, the firm is embarking on an exciting expansion in Latin America. Rene Saul stated that more than 80,000 customers already trust the financial well-being of their business to Kapital. He also noted that the company is actively introducing more and more products based on artificial intelligence. Separately, Rene Saul drew attention to the intensive pushing of the firm he heads into new markets.

Currently, companies belonging to the sphere of small and medium-sized businesses around the world are taking measures aimed at finding new sources of financing. The results of a special industry study showed that in July of this year in the United States, only 47% of organizations whose annual income does not exceed $10 million had access to business or personal financing. Also, 53% of the surveyed representatives of the American small and medium-sized business sector in the summer of 2023 reported problems with obtaining credit funds. This problem is most relevant for those companies whose annual income is no more than $150,000.

Most mid-sized firms in Latin America and the Caribbean use working capital replenishment solutions to achieve the goal of improving growth performance. It is also known that 94% of these companies intend to get access to the specified offers next year to receive investments for business development.

As we have reported earlier, SumUp Raises $300M in Growth Funding.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.