Mexican microlending start-up Baubap secures $120m in debt financing
Baubap, a consumer microlending platform in Mexico, has landed $120 million in debt financing in a pre-Series A round led by US-based fintech capital partner SixPoint Capital Management.
Mexico’s Baubap raises $120m in debt financing
The fintech will use the debt financing to boost its credit lending activities, with a focus on underserved borrowers who might otherwise be shunned by traditional forms of lending.
Founded in 2018 and based in Mexico City, Baubap operates an app-based service that leverages alternative data sources to grant consumer microloans of up to MXN 5,000 ($300) within 15 minutes of the application being made.
The fintech claims to currently service half a million active loans a month, and harbours plans to attract up to 1.4 million new customers this year as a result of its latest funding achievements.
Baubap previously received $20 million in debt financing from Park Cities Asset Management in November 2022, and $3 million in seed funding from Grupo Grameen in March 2021.
In a translated statement, Roberto Salcedo, CEO and co-founder of Baubap, says the fintech’s latest $120 million raise “gives us the opportunity to support millions of Mexicans, mainly to avoid informal loans, the most expensive type of credit, and give them options”.
