Colombian startup Finkargo announced a new financing round for $75 million in a structured credit to accelerate the growth of more than 600 SMEs in the country over the next year.
The investment was made by Community Investment Management (CIM), an impact investment fund that provides financing to ventures that seek to contribute to the financial inclusion of entrepreneurs and citizens in emerging markets.
Finkargo created a platform for financing foreign trade operations in Latin America, enabling small and medium-sized companies to grow their operations using logistical and technological support.
“We are excited to support Finkargo’s responsible placement of capital to continue transforming financial inclusion and promoting the growth of SMBs in the region. Finkargo’s mission is aligned with our vision of supporting technology enabled financial solutions that generate real and scalable impact in underserved sectors,” said Alejandro Arenas, Investment Principal of CIM.
This operation comes after receiving $7.5 million in seed capital just 7 months ago and financing close to $50 million in the last 14 months in international purchases of SMEs.
The startup is backed by U.S. funds Quona Capital and Flybridge, and Brazilian funds Maya Capital and One VC.
“If the SMBs we finance manage to accelerate their growth and profitability, our objective will be fulfilled. We will then be able to continue setting investment goals that are not only larger, but also more inclusive for those companies that still cannot access the international market due to lack of capital,” said Santiago Molina, CEO of Finkargo.
On average,Finkargo’s clients have increased the value of their operations by 62% YoY, and have diversified their supply chain, increasing by 27% the number of suppliers they work with. Today, more than 25% of clients are already enhancing global value chains thanks to Finkargo, increasing their competitiveness by importing inputs and raw materials necessary to produce value-added goods that re-enter the global market through exports.