Baubapthe Mexican fintech dedicated to offering instant microloans, closed a pre-Series A financing round for $120 million.
This debt financing came from the Six Point Capital Management platform. The capital will be used to meet market needs and attract up to 1.4 million new customers in Mexico underserved by traditional banking.
“The alliance with SixPoint is highly strategic for Baubap and represents a key moment for the company. It gives us the opportunity to support millions of Mexicans, mainly to avoid informal loans, the most expensive type of credit, and give them options that allow them to face special situations, grow a small business or even build credit history,” comments Roberto Salcedo, CEO. and co-founder of Baubap.
The rise of Baubap
Baubap was born in mid-2018, the fruit of the vision of its co-founders, who identified a critical need in the Mexican market: to offer financial services to those excluded from the traditional banking system. Through a value proposition focused on financial inclusion, Baubap has managed to position its platform as a viable and quick solution to obtain microloans.
The company offers microcredits through a 100% digital process through an application available on mobile phones with the Android operating system. It focuses on an audience that has few or no formal options for accessing financing, and that requires small loans to attend to emergencies or support a small business in a quick and timely manner.
Currently the company has more than half a million active credits per month throughout the national territory and expects to exceed one million by 2024.
With this line of credit, Baubap consolidates its position as a key player in the app lending segment in Mexico, and will exceed 8 billion pesos lent to more than one million people since its founding in 2018.
Impact on the fintech ecosystem
Baubap stands out within the fintech ecosystem for its inclusive approach and its ability to offer fast financial solutions without bureaucratic barriers.
Although it faces competition from other neobanks and financing platforms, its model based on technology and accessibility remains its greatest strength.
For its part, SixPoint Capital Management is a technology platform based in the United States, which directs non-dilutive growth capital for fintech companies exclusively in emerging markets and through structured financing of credit portfolios.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.