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The Mexican Fintech company sets its sights on new markets

Resolve Your Debt is a Mexican fintech company registered by PROFECO. The company’s main objective is to give a definitive financial solution for their clients’ financial problems and to settle their debts, saving up to 70%. Resolve Your Debt also helps to create good financial habits to improve people’s credit histories.

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Mexican private equity fund DILA Capital bought a minority stake in the local fintech company Resolve Your Debt (RTD / CAT60), dedicated to credit repair, for $4.9 million dollars (MXN 93 million) as of January 20th.

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Settle your debt and live in piece

With 16 branches in Mexico and more than 1,000 employees, the fintech company, Resolve Your Debt, works with a mission: to solve debts and help clients regain their peace of mind. The company offers the security the client may need. Resolve your Debt designs settlement strategies based on the client’s needs and offers the necessary financial advice to settle the debts.

Resolve Your Debt received a credit from the Alloy Merchant Partners fund, the U.S. investment company, for $19.1 million dollars (MXN 360 million). With the resources injected by DILA Capital in a recent round of investment and financing provided by Alloy, Resolve Your Debt has $24 million (MXN 453 million), with which it plans to refinance existing debt, working capital, and finance the acquisition of own shares of Crédito Real, one of its main shareholders.

A team from the areas of mergers and acquisitions and corporate finance and in-house counsels supported the target company, both in the purchase and sale operation, and in the financing phase. Zimma Corporate Finance provided financial advice to Resolve Your Debt.

DILA Capital develops its portfolio

Resolve Your Debt was founded in Mexico in 2009 as a way to address the over-indebtedness of the Mexican population. The company is also present in Argentina, Colombia, and Spain. Credit Real has been a shareholder of the company since October 2018, when it acquired 55.21% of its share capital.

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The Mexican media reported that this transaction will allow Resolve Your Debt to consolidate operations in the markets in which it is present, and continue its international expansion plan. According to Contexto, some of the markets targeted are Brazil and Italy.

With the DILA Capital acquisition, this provides an early-stage venture capital and also increases its portfolio of Mexican companies through its three funds. DILA Capital has accumulated a portfolio of 35 companies in different sectors.

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(Featured image by bruce mars via Unsplash)

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This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in LEXLATIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Valerie Harrison is a mom of two who likes reporting about the world of finance. She learned about the value of investing at a young age upon taking over her family's textile business when she was just a teenager. Valerie's passion for writing can be traced back to working with an editorial team at her corporate job, where she spent significant time working on market analysis and stock market predictions. Her portfolio includes real estate funds, government bonds, and equities in emerging markets such as cannabis, artificial intelligence, and cryptocurrencies.

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