Baubap, a pioneering consumer microlending platform based in Mexico, has announced a significant boost to its operations with $120 million in debt financing obtained in a pre-Series A round.
The round was led by SixPoint Capital Management, a U.S.-based fintech capital partner, marking a major milestone in the company’s efforts to extend its credit lending services to underserved communities across Mexico.
Founded in 2018, Baubap has rapidly grown into a leading fintech company, offering app-based microloans up to MXN 5,000 (approximately $300) with a remarkable turnaround time of 15 minutes from application to disbursement.
The platform utilizes alternative data sources to assess creditworthiness, providing a lifeline to borrowers who are often overlooked by traditional lending institutions.
With this latest infusion of capital, Baubap aims to significantly expand its reach, targeting the addition of 1.4 million new customers over the course of the year.
This ambitious goal is driven by the fintech’s successful track record, including servicing half a million active loans monthly.
The recent funding round builds on previous financial milestones for Baubap, including $20 million in debt financing from Park Cities Asset Management in November 2022 and an initial seed funding of $3 million from Grupo Grameen in March 2021.
Roberto Salcedo, CEO and co-founder of Baubap, expressed the impact of the new financing:
This $120 million raise gives us the opportunity to support millions of Mexicans, primarily to avoid informal loans, the most expensive type of credit, and to provide them with more affordable options.
This statement underscores the company’s commitment to financial inclusion and its strategy to combat the reliance on high-cost informal lending by offering accessible and fair financial products.
As Baubap continues to grow and evolve, its innovative approach to microfinancing is set to play a crucial role in transforming the financial landscape for underserved populations in Mexico, providing them with the tools and resources needed to achieve financial stability and growth.