Fintech companies specialized in serving businesses have greater opportunities to survive in this scenario due to their characteristics and competitive advantages, revealed a recent study by the consulting firm, KoreFusion.
According to the document, financial companies focused on small and medium-sized companies (SMEs) in Latin America stand out for the opportunity to attract the greatest risk capital investment. According to the information in said report, in the last two years, fintech companies focused on serving this segment have raised $15.2 billion.
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How many fintech companies specialized in SMEshave raised investments
However, the firm highlighted that in the region 23 fintech companies specialized in serving businesses have captured 87% of these investments, that is, $13.2 billion, which could be a sign of the opportunity of these firms in the SME segment.
The consulting firm indicated that in Latin America, Mexico was placed behind Brazil as the country in which fintech companies focused on serving SMEs raised the most investment, with $2.7 billion, where the Colvalto bank stood out; other financial companies such as Kapital, Konfío and Clara, and technological companies such as Clip.
Jaime Edelshein, KoreFusion consultant, commented that technology finance companies that maintain a more complete service offering for SMEs could obtain more investments with higher valuations, so these fintech companies would lean towards a regional expansion strategy.
“Fintech companies focused on providing innovation to SMEs will continue to evolve over time. On the one hand, those that offer a single product will raise early investment in order to consolidate themselves as leaders in their niche,” said Edelshein.
According to research, more than 22 million businesses are not supported by financial technology. While fintech companies specialized in serving the SME market consider that there is a significant gap in the solutions offered regarding access to credit, user experience and costs.
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First published in EL ECONOMISTA. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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