The Mexican fintech company Doopla collected $480,000 (10.6 million pesos) through Play Business, a crowdfunding platform. The amount of investment was achieved in just five hours on August 6th, the day the call was opened, “thanks to the confidence of more than 600 people and some institutional investments,” said the crowdfunding platform representative in a statement.
If you want to read more about the successful crowdfunding campaign that the fintech company Doopla recently ended and how the fintech sector in Mexico is holding up, download for free the Born2Invest mobile app. It’s not easy to keep up with everything that matters to you, but our companion app will bring you the most important financial headlines for you to stay informed.
High returns for investors in Doopla
It is expected that investors in Doopla, a fintech platform that directly and 100% digitally connects credit applicants with investors so that both can improve their personal finances, obtain their initial investment in the first five years and then continue to receive returns for as long as the platform continues to operate.
In addition, to give more certainty to investors, it is estimated that the minimum annual gross return is 12 percent and the maximum annual gross return is 35 percent.
“We are happy because the resounding success of Doopla’s investment round is further proof of the growth of the sector and that we have managed to create an attractive investment product and a new market. This success is a benchmark in the fintech sector and, as we wished, will set the tone for the generation of more alliances between other companies in the sector, accelerating their growth,” explained Ciro Mosqueira, Director of Growth Marketing at Play Business.
Likewise, Juan Carlos Flores, Doopla’s general director, explained that the investment round has been a good experience. “We hope that with more than 600 people now also added to our team, the company’s growth will accelerate even more.”
Doopla is waiting to be authorized by CNBV
The fintech company is confident that by mid-October at the latest, it will be authorized by the National Banking and Securities Commission (CNBV) to operate in a regulated manner. That, after the authorization processes were suspended since March as a result of the health contingency.
In an interview, Juan Carlos Flores, founder and director of Doopla, recalled that this fintech company was the first to enter its formal application to the commission, after a year and a half of process.
“In our case the deadline is mid-October, that’s why we hope that during those days we will have the authorization. It could be earlier.”
He mentioned that 85 fintech companies submitted their applications, of which 25 are related to crowdfunding and 60 to payment companies, so the bulk of the authorizations would have to be given between October and November.
Now the challenge for those that obtain the authorization will be to live with the regulatory environment and continue growing with it.
Doopla’s director highlighted that some of the advantages of operating as a regulated company are: legal certainty, institutionalization in the processes, greater confidence to users and increased value of the platforms.
“In general terms this is good news, we are very happy about it, and preparing to comply with the whole regulatory environment.”
Some fintech companies won’t hold up
Juan Carlos Flores considered that, given the effects of the pandemic, there will be some fintech companies of those who managed to enter their application, which have been lowered, but also because the regulatory burden is high and it is likely that not all can meet it.
“We must be aware that with or without a pandemic not all will meet the various requirements, which are many and are robust, to comply with a regulatory environment, and once we know those figures, in mid-November when all deadlines have expired, we can talk more clearly about how many we are authorized and what will happen with those who are not.”
However, he does not see a slowdown in the growth rate of fintech companies in Mexico as a result of the pandemic, and on the contrary, he pointed out that in this contingency it has been demonstrated that financial technologies have become indispensable.
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First published in elempresario.mx, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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