Goldman Sachs lends $140 million to fintech Xepelin
US financial firm Goldman Sachs has agreed to lend $140 million to Chile-based fintech Xepelin to support its expansion into Mexico.
Xepelin representatives quoted 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 customers to 1 million customers by 2025. According to the company’s own estimates, the market for B2B payment services in Latin America is as large as 8 trillion dollars.
The asset-backed loan from Goldman Sachs has a term of approximately three years and will be released in two tranches, one of $40 million and the second of $100 million.
Xepelin offers digital business transformation by scaling the existing payment infrastructure and creating a platform for SMEs at the regional level. The company provides small and medium-sized companies with financial information in real time and integrates financial services with various data models that make it possible to reduce, from weeks to hours, the time normally taken by the financial processes they have to go through.
Goldman has provided loans to other startups in the region
In August 2022, Goldman also extended a line of credit to Mexican startup Clara, which lends to companies and helps manage their expenses.
The financing, which starts at USD 50 million with the option to increase to USD 150 million, will help the Mexican company to increase its lending business, accelerate its expansion throughout Latin America and invest in technology. After this investment, Clara plans to expand to Peru and Chile.
Other developments from Xepelin
In May 2022, Xepelin raised $111 million in its Series B funding round to boost growth in Mexico. The company’s expansion into Mexico can positively impact the local market 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 part of the financing was secured by the LatAm venture fund Kaszek Ventures. LatAm and US-based asset managers and hedge funds, including Chile-based pension funds, provided the credit facilities.
