Mexico is an intriguing market for up and coming small business lending platforms. According to Techcrunch, “only 39 percent of the population has a bank account and 75 million people still have no access to the kind of financial services and lending support they would need to start micro- and small- businesses.” The opportunities within the Mexican market are a bit similar to India (albeit much smaller) and could provide a test case for a country where the majority of its population does not have access to substantial financial support.
A number of startups have launched with the focus on bringing Fintech to the growing industry. One of which is Konfio, a Mexican startup that has managed to raise $10 million in new funding. Konfio while the latest player in Fintech, is not the only one with competitors including Kueski and Kubo.financerio, both with venture capital backing. “In all, these early-stage companies have raised roughly $29 million to support Mexico’s emerging technology-based lending market.”
The estimated market for small business lending in Mexico is around $20 billion (minus time frame), but with such large potential and no one mastering the industry, there is still many opportunities for companies that can figure out the market. Time will tell if any player is able to emerge as the top Fintech company but for now $20 billion is up for grabs.