Con la esperanza de ser el principal banco digital de LatAm para pymes, Xepelin lanza un servicio de gestión de ingresos y préstamos - ProWellTech

Hoping to be LatAm’s premier digital bank for SMEs, Xepelin launches loan and income management service – ProWellTech

There is another competitor in the startup race to provide financial services to small and medium-sized companies in Latin America.

Financial services have been a great opportunity for startups from Brazil, Colombia and Mexico in recent years, and now Xepelin, a Chilean startup, is looking to join the fray.

Xepelin founders Sebastian Kreis and Guillermo Molina Carvallo launched their company with the vision of creating a new kind of online banking for small businesses in Latin America.

Sebastian Kreis, Managing Director of Xepelin. Image credits: Xepelin

The presentation of the business to entrepreneurs depends on a variation of the credit instrument known as factoring, in which small businesses can borrow based on the income they expect to receive. In Latin America, where small businesses have limited routes to traditional loans, according to Kreis, factoring represents a new solution.

Xepelin already has a multi-million dollar line of credit on its balance sheet, as well as a small round of seed financing, and the company will use both the line of credit to attract clients and the infusion of capital to continue developing revenue management and resource planning tools. . For your customers.

Starting in Chile and Mexico, where the two founders have a long history in the financial services world, the company plans to become a continental player in line with the growth of private debt services for small businesses.

Other startups, such as Portal Finance and Marco Financial, are also turning to the loan markets. Like Xepelin, the two companies have obtained multiple lines of credit to support their businesses.

Kreis estimates that debt financing in Latin America could grow up to 70 times its current size, given the changes in the regulatory environment and growing demand for digital financial services over the next decade.

In the first phase, we developed the new standard for financing working capital for SMEs in Latin America, focusing on our clients’ user experience, their financial needs (not just transactions), and how they manage their working capital. Xepelin offers SMEs access to capital simply and efficiently.

Mexico is a good indicator of the potential size of the market, according to Kreis. Only 300,000 companies, out of more than 6 million registered companies, have business and accounting executives who offer revenue management and lines of credit.

These money managers have a portfolio of 300 companies that they work with, while mid-range companies can work with between 1,000 and 5,000 small businesses.

So far, Xepelin has raised $ 3.5 million in seed funding from investors such as Oskar Hjertonsson, Manutara Ventures, Ignacio Canals, Gonzalo Rojas, FJ Labs, Diego Fleischmann and Daniel Undurraga. The most recent capital injection, a $ 2.5 million round led by Impact Ideas VC, closed earlier this month.