Baubap, a Mexican microloan fintech, has received a $20M loan from Park Cities Asset Management, a U.S.-based fund.
Through an app, the startup offers microloans that range from 25 to 258 dollars. Users can obtain loans 24/7 from their cell phones and without consulting the credit bureau. Thanks to artificial intelligence, Baubap takes 15 minutes to evaluate a loan application and determine the likelihood of repayment:
“We developed a vehicle that offers quick access to capital, eliminating barriers to access, with a dignified collection process and without bad, aggressive, or demoralizing practices,” explains Roberto Salcedo, CEO and co-founder of Baubap.
Also, the platform offers financial education support to users, a resource that “seeks to help people make better use of these loans and prepare them for more complex products in the future,” according to Salcedo.
The startup currently operates in Mexico, and has granted loans to 500,000 people. According to Baubap, the company has grown 7x its revenue in 2022. With the new funds, they are expecting to exceed 1.5 million loans in 2023, reach half a million dollars in granted loans, and expand their product offerings.