Mexican fintech Clip landed a $50 million three-year unsecured revolving credit facility with Morgan Stanley, JP Morgan and HSBC. The funds will help Clip to expand its efforts to meet businesses’ demand for innovative payment solutions and improve financial access for Mexican businesses and consumers.
Clip was founded in 2012 by CEO Adolfo Babatz to drive financial inclusion in Mexico by providing small and medium-sized businesses (SMBs) access to digital payment solutions. The company sells its distinctive white and orange point-of-sale terminals starting as low as $10 along with a recently launched tablet that retails for $150.
Clip’s devices, which also help manage inventory, are becoming common throughout Mexico in convenience stores and restaurants. Babatz believes there is still a lot of market to capture in a country where many transactions are still cash-based.
“This credit facility represents another important milestone for Clip, as it provides additional support to our already solid balance sheet and liquidity position,” founder and CEO Adolfo Babatz.
The fintech is interested in eventually doing an IPO, but both Babatz and Carranza noted that this is not the ideal time for Latin American technology companies to approach the market.
“Fortunately, we don’t need it right now and in this storm we’re seeing across the industry, we’re calm from a fundraising standpoint,” said Carranza. “Hopefully someday we will, but for now, we don’t need it.”
Additionally, last month Clip received approval for an IFPE (Institution of Electronic Payment Funds) licence from Mexico’s National Banking and Securities Commission (CNBV). The licence was obtained through Clip’s acquisition of payments platform Swap, giving the fintech the ability to open and hold customer accounts with electronic balances, provide wire transfer services and issue debit cards.
In June last year, Clip received a $250 million investment from SoftBank Group Corp.’s Latin America Fund and Viking Global Investors LP that brought it to a $2 billion valuation.