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.
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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