Mexico has been making a name for itself in the tech industry, with startups and investors alike flocking to the country to take advantage of its growing ecosystem. One such startup is 20m, a Mexico City-based fintech company that recently raised $3.5 million in seed funding led by Anthemis Group. The funding round also included participation from other investors such as Flourish Ventures, Quona Capital, and Mountain Nazca.
What is 20m?
Founded in 2019 by CEO Sebastian Medrano and CTO Rodrigo Segal, 20m is a financial technology company that provides credit to small and medium-sized businesses in Mexico. The company’s platform uses artificial intelligence and machine learning algorithms to analyze data from a variety of sources, including bank statements, invoices, and social media, to determine a business’s creditworthiness. This allows 20m to provide loans to businesses that might not otherwise have access to traditional financing options.
The Importance of Fintech in Mexico
Mexico’s economy is heavily reliant on small and medium-sized businesses, which account for over 70% of the country’s employment and contribute around 52% of its GDP. However, these businesses often struggle to access the financing they need to grow and expand. This is where fintech companies like 20m come in, providing an alternative to traditional banks that may be hesitant to lend to smaller businesses.
The Mexican government has recognized the importance of fintech in driving economic growth and has taken steps to support the industry. In 2018, it passed a new fintech law that regulates the sector and provides a framework for companies like 20m to operate. The law also includes provisions for crowdfunding, digital payments, and open banking, which are all areas where fintech companies can make a significant impact.
The Future of 20m
With its recent funding round, 20m is well-positioned to continue its growth and expand its reach across Mexico. The company plans to use the funds to hire additional staff, improve its technology platform, and increase its lending capacity. It also aims to expand into other Latin American markets in the future.
Anthemis Group, the lead investor in 20m’s seed funding round, is a venture capital firm that specializes in fintech and insurtech investments. Its portfolio includes companies such as Betterment, Trov, and Tide. The firm’s investment in 20m is a testament to the potential it sees in the Mexican fintech market and the company’s ability to provide innovative solutions to small businesses.
Mexico’s fintech industry is rapidly growing, and companies like 20m are at the forefront of this expansion. With its AI-powered platform and focus on providing credit to underserved businesses, 20m has the potential to make a significant impact on Mexico’s economy. The recent seed funding round led by Anthemis Group is a strong vote of confidence in the company’s vision and its ability to execute on its plans for growth. As the fintech industry in Mexico continues to evolve, it will be exciting to see what other innovative solutions emerge to support the country’s small businesses.