Baubap, a Mexican digital lending startup, secured a $23M credit facility from BBVA Spark and SixPoint Capital.
Founded in 2018, Baubap provides digital microloans through a mobile app. Baubap uses alternative data and proprietary risk models to serve borrowers who often lack access to traditional financial services, including people without a credit history.
With the funds, Baubap will expand its lending capacity and strengthen its capital structure as it scales access to credit across Mexico.
Baubap has provided loans to more than 2 million people and expects the new facility to help it reach more than 5.5 million users.
“The support of BBVA Spark is an important milestone for Baubap,” said Roberto Salcedo, CEO of Baubap. “We also appreciate the continued partnership of SixPoint Capital as we continue expanding access to financing in Mexico.”