Chilean fintech Xepelin Holdings Inc. secured a $140 million credit line from Goldman Sachs Group Inc. The company will use these resources to expand its payment and credit services to B2B SMEs in Mexico.
The announcement comes just 4 months after raising a $111M Series B investment round.
“It’s our largest credit line so far [ in Mexican pesos] and it’s just the beginning of what we hope will be a long-term relationship,” Nicolas de Camino, co-founder and co-CEO of Santiago-based Xepelin, said in a video interview. “We hope to be able to expand it in the future.”
The asset-backed loan has a maturity of about three years and will be released in two tranches, the first for $40 million and the second for $100 million. Xepelin aims to reach 1 million clients by 2025, up from 15,000 now, said Camino.
Xepelin specializes in B2B transactions, including supply chain finance. Its platform helps users organize accounts and automate payments to suppliers. According to Xepelin’s estimates, the market for B2B payment services in LatAm reaches $8 billion.
Since Xepelin’s founding in 2019, Camino and Kreis have raised $230 million in mid-2021, including debt and equity, and another $111 million in an equity round earlier this year led by Avenir and Kaszek. To date, the company has generated more than $1.2 billion in funding.
Xepelin also uses technology to collect public information from companies, such as data from tax agencies. This makes it a powerful tool to better understand credit risk.
“We build not only a payments ecosystem between payers and providers where they can organize all their receivables and their financial life, but also where they can see all the companies in our network, to better collect and pay,” said Xepelin co-founder and co-CEO Sebastian Kreis, who also founded Chilean security company Safecard.
After capturing a strong share in Chile, Xepelin entered the Mexican market and quickly positioned itself as an industry leader. Since its Series A, the company has grown to serve more than 5 times the number of customers in Chile and Mexico. Moreover, Xepelin has increased revenues 60 times in Mexico, where it launched Payments, a new B2B payments product that allows all companies to organize and automate their payments to suppliers.