After Obtaining Endorsement as a Fintech, Klu Will Seek to Become a Sofipo

The fintech company Klu, which has just obtained authorization as an Electronic Payment Funds Institution (IFPE) under the terms of the Law to Regulate Financial Technology Institutions (Fintech Law), indicated that it will seek to expand its offer by acquiring a Sociedad Financiera Popular (Sofipo).

In an interview, the firm specialized in financial services to companies said that the decision is due to the size they have reached since they provide services to 2,500 corporate accounts and transact more than 7 billion pesos per month.

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Klu now plans to expand its offer by becoming a Sofipo

According to the aforementioned, the recent authorization as IFPE opened the way for the firm to start expanding its services. In addition to seeking the acquisition of a Sofipo, it will also start operations with a company it recently acquired in the United States for remittance transfers.

“Although we are very focused on the corporate sector, we also see an opportunity to improve services in other markets, for example in the process by which our countrymen send a remittance. Other fintechs have made good efforts, but there are still opportunities. We expect to go to market with a solution in the first quarter of 2024,” said Alberto Djemal, CEO of Klu.

As mentioned by the executive, operating through another figure such as a Sofipo will also allow it to improve its offer of working capital financing and credits for short-term international transfers.

“As for the part of why seek a Sofipo, we see growth in our demand for credit and it is becoming one of the main activities of the group, so it is important that we operate through a Sofipo figure, beyond the IFPE license,” said Djemal.

The fintech company joins other financial institutions that have expressed their intention to acquire a license that will allow them to capture funds from the public, such as Baubap, and if it is granted, it would join groups such as Broxel that have an IFPE and a Sofipo.

With its authorization, Klu joined a universe of 70 Financial Technology Institutions authorized under the Fintech Law

On the other hand, Klu’s authorization is one of the processes that took the longest to be resolved. From the moment it submitted its application until its authorization was published in the Official Gazette of the Federation, 1,511 days elapsed.

According to Djemal, the length of the process was partly due to the fact that the fintech is the only IFPE so far authorized by the Bank of Mexico (Banxico) to carry out operations in foreign currency.

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