Funding Round attributes
CXC, a Mexican fintech founded in 2018 by Marvin Palavicini, Eduardo Etchegaray, and María Teresa González, specializes in providing credit and financing services to small and medium-sized enterprises (SMEs) through a platform that uses advanced technology. In its most recent Series A investment round, CXC managed to raise $32.6 million, led by Kaszek, one of Latin America's leading venture capital funds. Other investors included Quona, Mercado Libre Fund, Daedalus, Saison Capital, and Actyus.
CXC plans to use these funds to consolidate in the private credit market, looking to expand its operations to the rest of Latin America and the US. Fintech is planning to close in 2024 with around US$11 billion in assets under management. Part of the funds will also be used to strengthen its technology team and improve the automation of its internal processes.
"With the $32.6 million we are prepared to accelerate our expansion in Latin America and the United States," Contxto Eduardo Etchegaray, co-CEO of CXC, said.
The executive also says that the investment will allow them to "significantly expand our technological infrastructure, optimize our processes, and further improve our value proposition for fintech and non-banking financial institutions in the region".
The involvement of investors like Kaszek is key to CXC’s growth, as Kaszek has a long track record of investing in tech startups in the region. The backing of these investors not only provides capital but also strategic and growth experience, which can be crucial for CXC to expand its share in the SME financing market.
"We are very excited to support the growth of CXC as it continues to shape the financial infrastructure landscape in Latin America. We believe that CXC’s execution-focused management and commitment to innovation have positioned the company as the reference platform for the Latin American Spanish-speaking market," said Ángel Uribe, Kaszek’s partner.
CXC’s approach is focused on providing a digital platform that enables SMEs to get credit quickly and easily. Through the use of advanced algorithms and artificial intelligence technology, CXC analyzes business data and offers customized credit solutions. It aims to transform access to finance for SMEs, making the process more agile and efficient.
The latest report in Latin America and the Caribbean Fintech series reveals that this industry has seen an increase of more than 340% in the number of technology finance ventures created over the past six years, up from 703 companies in 18 countries in 2017, to 3,069 in 26 countries by 2023.
In this regard, María Teresa González, founding partner of CXC said: "Our main difference will lie in advanced technology, optimized processes, and market experience. We have unique solutions for each market".
Investor support in this round of financing not only strengthens CXC’s market position but will also enable it to continue to innovate in the Mexican fintech sector. This investment marks a milestone for the startup, consolidating it as a key player in digital financing for small and medium-sized enterprises in the region.
