Fairplay, a Mexican revenue-based investment startup, raised $35M in a Series A funding round.
Fairplay helps e-commerce companies grow by bringing them a cash advance from their future cash flows as a financial service.
The investment round consists of $15M in equity, co-led by Dila Capital and Kayyak Ventures, with the participation of Speedinvest and Elevar Equity, and $20M in debt led by Architect Capital. Existing investors in the round included QED Investors, Nazca, and several individual investors. In total, Fairplay has raised $40M.
“Most of the money goes to inventory because the cycle from when you order to when you start selling a product is around 45 to 60 days. By providing this capital, we are helping e-commerce companies shorten the cycle to avoid cash flow constraints,” said Manolo Atala.
The funding round will be used to invest in the online marketing campaigns of direct-to-consumer e-commerce brands and marketplace sellers in Latin America and the growth of Fairplay’s headcount. Atala expects to double its 38 employees in the next few months.
The company’s third-quarter of 2021 was the best in its history, growing 250% in originations over the second quarter and more than 200% in revenue.
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