Representatives from Xepelin cited by Bloomberg.com revealed that this is the largest credit facility for the company to date, and that it is denominated in Mexican pesos.
The same source revealed that Xepelin plans to expand to other nations and that it has a goal of increasing its current portfolio of 15,000 clients to 1 million clients by 2025. According to the company’s own estimates, the market for payment services between companies in Latin America is as large as $8 trillion.
The asset-backed loan from Goldman Sachs has a maturity of about three years and will be released in two tranches, one for USD 40 million and the second one for USD 100 million.
Xepelin is providing business digital transformation by scaling the existing payment infrastructure and creating a platform for SMEs at a regional level. The company provides small and medium-sized companies with real-time financial information and integrates financial services with different data models that allow reducing, from weeks to hours, the time normally taken by the financial processes they must go through.
In August 2022, Goldman also extended a line of credit to Mexican startup Clara, which lends to corporations and helps manage their spending.
The financing, which starts at USD 50 million with the option to upsize to USD 150 million, will help the Mexican company boost its lending operations, accelerate its expansion throughout Latin America and invest in technology. Following this investment, Clara plans to expand into Peru and Chile.
In May 2022, Xepelin raised USD 111 million in its Series B financing round in order to increase its growth in Mexico. The company's expansion into Mexico could impact the local market in a positive way by hiring local talent and supporting progress in digital innovation.
In August 2021, Xepelin secured USD 30 million in equity and USD 200 million in credit facilities. The equity portion of the financing was secured by LatAm venture fund Kaszek Ventures. LatAm and US-based asset managers and hedge funds, including Chile-based pension funds, provided the credit facilities.
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