Mexico-based neobank Covalto secured a $10 million line from the International Development Finance Corporation (DFC). The news came after the neobank expanded a $190 million credit line (MXN $3.8 billion) from FIRA, a state-run agribusiness lender.
The DFC is an American institution that provides financing to developing nations for economic growth, to promote stability and improve people’s livelihoods.
Covalto (previously known as Credijusto) supports the financial needs of SMEs in Mexico through competitive products. In June 2021, Covalto acquired Banco Finterra, becoming the first Mexican fintech to acquire a regulated bank.
The company has previously received backing from investors like QED Investors, Kaszek, Goldman Sachs, Point72 Ventures, IGNIA, Credit Suisse and Victory Park Capital.
Covalto co-CEO David Poritz stated that the neobank will use the proceeds to finance acquisitions in Mexico and other markets in LatAm, as well as to develop new products.
