Hoping to be Latin America’s first digital bank for SMEs, Xepelin launches loan and revenue management service – TechCrunch

There is another entrant in the race for startups to provide financial services to small and medium enterprises in Latin America.

Financial services have been a huge opportunity for startups emerging from Brazil, Colombia and Mexico in recent years, and now Xepelin, a new Chilean company, is looking to join the fray.

The founders of Xepelin, Sebastian Kreis and Guillermo Molina Carvallo, started their company with the vision of creating a new type of online banking for small businesses in Latin America.

Sebastian Kreis, Managing Director, Xepelin. Picture credits: Xepelin

Introducing the company to business owners depends on a variation of the lending tool known as factoring, where small businesses can take out loans based on the revenue they expect to receive. In Latin America, where small businesses have limited opportunities for traditional loans, according to Kreis, factoring represents an innovative solution.

Xepelin already has a multi-million dollar line of credit in addition to a small initial funding round and the company will use both the line of credit to attract customers and the injection of equity to continue to develop. revenue management and resource planning tools for its customers. .

Starting with Chile and Mexico, where the two founders have a long history in the world of financial services, the company intends to become a player across the continent in step with the growth of private debt services for small businesses.

Other startups, like Portal Finance and Marco Financial, are also targeting lending markets. Like Xepelin, the two companies have obtained several lines of credit to support their activities.

Kreis estimates that debt financing in Latin America could reach 70 times its current size given changes in the regulatory environment and growing demand for digital financial services over the next decade.

In the first step, we developed the new standard for working capital financing for SMEs in Latin America, focusing on the user experience of our customers, their financial needs (not just transactions) and how they manage their working capital. Xepelin allows SMEs to access capital in a simple and efficient way.

Mexico is a good indicator of the potential size of the market, according to Kreis. There, only 300,000 companies – out of more than 6 million registered companies – have sales and account managers offering revenue management and lines of credit.

These fund managers have a portfolio of 300 companies they work with, while medium-sized companies can work with up to 1,000 to 5,000 small companies.

So far, Xepelin has raised $3.5 million in seed funding from investors including Oskar Hjertonsson, Manutara Ventures, Ignacio Canals, Gonzalo Rojas, FJ Labs, Diego Fleischmann and Daniel Undurraga. The most recent capital injection, a $2.5 million round led by Impact Ideas VC, closed earlier this month.

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