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Mexican BNPL firm Aplazo raises $70 million

Mexican BNPL platform Aplazo has raised $70 million in equity financing, including a $45 million Series B.

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Mexican BNPL firm Aplazo raises $70 million

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QED Investors led the equity financing, which also included participation from new investor Volpe Capital as well as existing investors Oak HC/FT, Kaszek and Picus Capital. Aplazo has now secured more than $100 million in equity financing and $75 million in committed debt funding since launching in late 2020.

The financing round comes on the back of a threefold growth in revenue from rapidly expanding market share among online and offline merchants, as well as strong financial performance, operating near breakeven in the last couple of months.
Presently, in-store transactions account for roughly more than half of Aplazo’s business, representing around 93 percent of total retail sales in Mexico

Fully 40 percent of Aplazo’s users have no credit history, yet the company maintains a credit approval rate of over 80 percent, with low-single-digit credit loss rates.

Angel Peña, CEO and co-founder of Aplazo, says: “We’ve identified clear gaps in the market when we look at offering consumers better payment and financing products. Our ability to offer ubiquitous BNPL services allows 88 percent of the Mexicans that don’t have credit cards to make every-day purchases and pay them later in installments in a simple to understand way, which resonates well with the underserved Mexican population.”

"Additionally, all Aplazo merchants have access to a marketing tech stack and AI tools that are designed to understand unique customer insights to better run their business.”

He says the company will deploy the additional capital to continue shaping Aplazo’s product offering by using AI capabilities to better understand consumer and merchant needs and to enhance risk decisions.

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