After nabbing $5.25 million during seed round about four months ago, Mexican fintech company Aplazo has now bagged an even bigger round of $27 million to intensify adoption of buy now, pay later (BNPL) payment plan across the country.
The $27 million was raised in a Series A investment round led by Oak HC/FT and involved existing investors such as Kazek and Picus Capital as participants. The latest financing lands the Mexican BNPL startup’s total funds to over $35 million.
Angel Peña, Co-Founder of Aplazo, commented that the recent funding was unexpected as the company had secured optimum share of capital through the seed round.
Nonetheless, it offers Aplazo with the opportunity to substantially catalyze its mission to enhance technology and product development followed by investments in merchant success.
Adding to the company objectives, Aplazo plans to double its existing 50-employee team by February and expand geographic footprint to two additional countries in 2022.
With the seed round, Aplazo scaled up the company’s total processing volume over eight times. It has established a robust network of merchants operating in lifestyle products such as beauty, footwear and fashion and has partnered with more than 1,000 merchants in less than a year.
Mr. Peña gauges significant contribution of nearly $70 billion from these categories considering online as well as offline purchases.
For the record, Aplazo specializes in online and offline payments processes for merchants allowing users to purchase a product first and pay back with five equal installments without any credit card.
Realizing that nearly 40% of the population does not have credit history, Aplazo opts for alternative data, for instance, telecom data and open banking to determine level of affordability and credit worthiness of customers.
It also helps optimize approval rates for offering and provides the underserved consumers with products within an optimum credit range, said Mr. Peña.