July 7, 2022 Forbes Mexico - Kapital, a LATAM Fintech company, announced it has raised $30M in an equity and debt round led by Tenacity Venture Capital, an investment fund founded by Silicon Valley venture capitalist Ben Narasin.
The company was founded in 2020 by Eder Echeverria, Fernando Sandoval, René Saul and the founders intend to use the new funds to expand its service technology offerings and to start business operations in Colombia. The deal was structured so that of the total amount of the transaction $10 million corresponded to equity in the company and $20 million in debt instruments.
The round also highlights funds such as Telesoft, Broom Ventures, Pioneer Fund, Soma Capital, FoundersX Ventures and angel investors such as the co-founder of Dropbrox, Arash Ferdowsi, who is also a board observer and mentor of the company to further strengthen it in the area of technology.
This time, hand in hand with Tenacity, they will inject the new capital into more technology and into its expansion to Colombia, because in this country, from the point of view of Capital, the ideal conditions exist among its SMEs, for example, they have great interest and openness to adopt new financial solutions and few entities to help them grow.
Although Kapital still prefers not to announce when it will open to the next round of investment (series A), its directors assure that it will also come from an investment giant, as it has been until now in just two years of existence.
For René Saúl Farro, CEO and co-founder of Kapital, the company obtained the financial resources due to its high rate of profitability and accelerated growth. "It should be noted that given the circumstances that the Venture Capital ecosystem is experiencing, achieving this round is something highly significant," the company tells Forbes Mexico.
“It should be mentioned that, despite the uncertainty in international markets due to inflation and interest rates, the funding of new projects based on technology will continue, even though the amounts of Venture Capital in Latin America fell 25% between the first and fourth quarters of 2022 and in the case of Mexico, they fell 59%, according to CB Insights”, says the firm.
Kapital makes an intelligent platform available to SMEs so that they themselves can organize and manage their income and expenses and, if necessary, access financing, something that, together, contributes to each of its users becoming a Data Driven Company (DDC).
The company offers a business-to-business (B2B) technological-financial solution, a pioneer in functioning as an intelligent financial company that collaborates with businesses in the management of their capital flows and expenses, so that they have visibility of what is happening with their budgets, but additionally, if they lack resources, provide them with financing.
“Mexican SMEs will need more support than ever, because few banking institutions will be able to finance them so easily and quickly, something that, without a doubt, would make it even more difficult for companies to have liquidity and, therefore, for growth as a country, since there are It must be remembered that the forecasts regarding development in general are not encouraging, since the World Bank foresees a contraction of 1.7% in economic growth expectations for Mexico in 2022 and 1.9% for 2023”, says the company.
Note: FoundersX Ventures invested in Kapital seed round.