Grupago, a fintech company based in Mexico City that offers digital microcredit to Latin American small and medium-sized enterprises (SMBs), has secured $4.3 million in seed capital.
Deciens Capital led the investment, with participation from other venture funds including Precursor Ventures, Clocktower Ventures, and Twine Ventures. Numerous angel investors from the US and Mexico also joined them, including Paul Sawaya (co-founder, Human Interest), Oso Trava (Cracks Fund), Pepe Shabot (CEO, ION Mexico), and Zac Bookman (CEO, OpenGov).
The money will be used by the business to increase operations and development initiatives.
Grupago, under the direction of its founder and CEO, Uri Pomerantz, offers small and mid-sized businesses (SMBs) in Latin America a digital microcredit platform. By utilizing group collateral, artificial intelligence, and community distribution, Grupago is able to provide credit to micro-SMBs in the region that have been turned away from traditional SMB lending channels.
Grupago is presently operating in Mexico with plans to eventually expand throughout Latin America. A group financing product targeted at female entrepreneurs is its primary objective.
Concerning Grupago
In Latin America, Grupago is leading the way in digital microcredit for small enterprises by utilizing community distribution, group collateral, and artificial intelligence.
Our goal is to provide millions of entrepreneurs who are unable to obtain traditional financing with increased access to affordable loans.
Online, they find community leaders who establish loan organizations in their own communities. This enables us to connect with clients who are remote or otherwise difficult to reach.
As members of lending clubs, borrowers team up and co-sign each other’s loans. Repayment is the responsibility of other members when a payment is missed. They are able to construct extremely reliable underwriting models and collateralize a consumer segment that would not otherwise be able to be collateralized.
To underwrite small loans, they leverage AI’s capabilities, including non-traditional data sources. We gradually raise credit limits when clients have a track record of timely repayment.
