Mexicana Kueski Raises US $ 202 Million to Expand Operations | ECONOMY

Mexican fintech Kueski, which uses algorithms to approve loans, raised $ 202 million in equity and debt, becoming the latest startup to take advantage of a financing boom across Latin America.

The Serie C round was led by StepStone Group Inc and Victory Park Capital. It also included new investors such as OnePrime Capital and Glisco Partners, as well as existing investors Altos Ventures, Cometa, Richmond Global Ventures, Rise Capital and Angel Ventures Mexico.

Funds from the Series C round will be used to expand operations in Mexico, with plans to double the number of employees on the technology team to about 300 people, the co-founder and CEO said, Adalberto Flores, In an interview.

The most popular product of Kueski it is Kueski Pay, which uses artificial intelligence to offer purchase loans now and pay later to online customers, even those without bank accounts, Flores said.

The company’s algorithm analyzes data “alternative“Such as how fast a person types, what type of email address they have and what time of day they are filling out the application to establish the terms of the loan, he said.

The funding round adds to a flood of venture capital money pouring into tech-related startups across the region as investors are drawn in by the potential for rapid growth.

Mexico recently added its fourth unicorn, small business lender Konfio Ltd, which joins used car dealer Kavak, to the cryptocurrency exchange Name and the payment processor Clip.

Less than 40% of adults in Mexico have bank accounts, which means that a large part of the population cannot access traditional credit. Flores indicated that what the company does is use artificial intelligence to grant loans to people who may not have a credit history or other ways of accessing loans.

Kueski Pay saw a 210-fold annual volume increase in November and has completed more than 5 million online transactions.

Payroll loans

Kueski, what does it mean “how many”In the indigenous Nahuatl language, it has two other popular products: Kueski Cash, a short-term loan of up to 20,000 pesos (US $ 940) and Kueski Up, a payroll loan that offers credit of up to 40% of a person’s salary.

Kueski it also plans to launch a mobile app. Last month, it launched a new product in which users can scan QR codes in physical stores and immediately access financing plans.

The startup currently only operates in Mexico. Flores said Kueski could explore launching operations elsewhere in the region, but that the company has a lot to do for now given the country’s low banking penetration rates.

Kueski declined to share details about the company’s valuation and delinquency rates, but Flores said they are in the single digits and manageable.

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