Top Fintech VC firm QED Investors has participated in a funding round of Aplazo, a Mexico-based buy now pay later (BNPL) firm.
According to a release, Aplazo has closed on an additional $70 million in funding inclusive of a $45 million Series B round.
QED led the funding round that saw the participation of new investor Volpe Capital end existing investors Oak HC/FT, Kaszek and Picus Capital.
Reportedly, Aplazo has now secured over $100 million in equity financing and $75 million in committed debt funding since its launch in 2020.
Aplazo reports strong growth and financial performance which encouraged the additional funding. The BNPL reports nearing break even.
Aplazo CEO Angel Peña said they have sought to become the preferred payment method in Mexico rather than traditional credit products that “lure users into a debt trap.”
BNPL has supported offline retail which is over 90% of the market in Mexico. In-store is said to generate half of the company’s business.
Aplazo claims that, in many cases, it is the first and only credit source, noting that 70 percent of its users don’t have another credit product registered on bureau records. Approximately 40% of Aplazo’s users have no credit history.
Aplazo also reports having the largest network of merchants in Mexico, both online and offline.
Peña says there is an opportunity to offer ubiquitous BNPL covering 88% of the Mexicans that don’t have credit cards.
QED Investors partner and head of LatAm Mike Packer said:
“We are incredibly excited to partner with Aplazo on the journey to become the preferred payment solution in Mexico. The company has made great progress in recent years, including delivering sustainable unit economics with a laser focus on the customer experience. Angel and Alex have surrounded themselves with a world-class team that we believe is just scratching the surface on the consumer and merchant payments opportunity in Mexico.”