Goldman Sachs Group Inc along with others including Point72 Ventures came investing $42 million in Credijusto.com, a Mexico-based online lender, said the companies in a statement on last Thursday.
Credijusto was founded in 2015, and so far has succeeded to originate equipment leases and loans worth $90 million to small businesses like mechanics and dry cleaners across Mexico, showed a statement from the Credijusto and investing firms.
The current investment by the venture capital arm of Steve Cohen’s investment firm Point72 and Principal Strategic Investments group of Goldman Sachs is for the first time ever these companies have invested in fintech market of Mexico, acknowledging the signs of potential for growth in that region.
In a market like Mexico, where middle-class and poor customers are not in a practice of using traditional banking channels, startups like Credijusto with the use of technology and mobile phones have been steadily rising selling financial services to such customer class. And in an economy where some 42 million people have not been maintaining any bank account because of several reasons including non availability of branch in their nearby vicinity, past scandals in some of the country’s banks shook the public trust upon them and charging of steep fees by the traditional banks, fintechs providing financial services is getting the popularity and gaining on the market share.
Government in Mexico has also said that it has been looking fintechs as major role player in expanding the country’s financial inclusion.
According to a statement, small and medium-sized businesses and companies makes about 99% of Mexico’s business but get the share of just 15% from the financing facilities provided by major banks, and in such scenario, Credijusto is dealing with financial inclusion gap for that segment of the market which has been neglected and under-served by traditional banks in the country despite having a larger size.