Fintech
Mexican trade and fintech platform Aplazo BNPL secures $70 million in equity funding
Aplazoan omnichannel payment platform offering flexible payment solutions and commerce enablement tools to help merchants accelerate sales and grow their brands, announced the closing of $70 million in additional equity financing, including a Series B of 45 million dollars.
QED Investors led the equity financing, which also included participation from new investor Volpe Capital and existing investors Oak HC/FT, Kaszek and Picus Capital. Aplazo has now secured more than $100 million in equity financing and $75 million in committed debt financing since its launch in late 2020.
The funding round comes on the heels of triple revenue growth resulting from rapidly expanding market share across online and offline merchants, as well as strong financial performance, operating at near break-even for the past two months. The company will employ the additional capital to continue shaping Aplazo’s best-in-class product offerings for both consumers and merchants and will double down on product innovation, including using artificial intelligence capabilities to understand better meet the needs of consumers and traders and to improve risk decisions.
Angel Peña, CEO and co-founder of Aplazo, said: “Aplazo aimed to become the preferred payment method in Mexico through fair, simple and transparent financial solutions, rather than traditional credit products that lure users into a debt trap. This behavior has been common practice in Mexico over the past decades and we put the consumer at the center of our offering of fair payment solutions. With this investment we aim to further advance our mission and are extremely excited to welcome QED as one of the world’s leading consumer fintech investors as a partner on this journey.”
Aplazo has positioned itself as a category leader in the BNPL space by addressing the massive offline retail market, which represents approximately 93% of total retail sales in Mexico. Currently, in-store transactions account for approximately more than half of Aplazo’s business and have been a significant driver of retention and loyalty.
In many cases, Aplazo is the first and only source of credit, noting that 70% of its users do not have another credit product registered in the bureau’s records. This was coupled with the company’s ability to deliver low single-digit credit loss rates, ranking among the lowest in the country.
Today, 40% of Aplazo users have no credit history, yet the company maintains a credit approval rate above 80%. Peña emphasized that these results highlight the importance of the Aplazo product and the team’s ability to establish a sustainable business model while providing value to both consumers and merchants.
Aplazo stands out from any other BNPL provider as the only player to truly offer endless possibilities where a user can “buy now, pay later”. In addition to having Mexico’s largest merchant network, both online and offline, Aplazo offers a single-use virtual card that allows users to purchase in installments wherever they want.
“We have identified clear gaps in the market as we seek to offer consumers better payment and financing products,” Peña added. “We see an opportunity to provide deeper engagement with our customers as they begin to transact more frequently with us. Our ability to offer ubiquitous BNPL services allows the 88% of Mexicans who don’t have credit cards to make everyday purchases and then pay for them in installments in an easy-to-understand way that resonates well with Mexico’s underserved population.” .
Aplazo’s success has also been attributed to its focus on providing an exceptional experience to brands. “We serve as a growth lever for our merchant partners to attract new customers and increase online and in-store sales,” said Alex Wieland, chief revenue officer and co-founder of Aplazo. “After working with Aplazo, our partners have seen on average a 60% higher average order value and 30% higher conversion. Additionally, all Aplazo merchants have access to a marketing technology stack and artificial intelligence tools designed to understand unique customer insights to better manage their business.”
Mike Packer, partner at QED Investors and head of LatAm, added: “We are incredibly excited to partner with Aplazo on the journey to become the payment solution of choice in Mexico. The company has made great progress in recent years, including achieving sustainable unit economics with a focus on customer experience. Angel and Alex have surrounded themselves with a world-class team that we believe is only scratching the surface of consumer and merchant payment opportunities in Mexico.”
Andre Maciel, partner at Volpe Capital, said: “We are extremely excited to partner with Aplazo as the largest BNPL provider in Mexico. Aplazo’s growth profile and unit economics not only make the company stand out among all other competitors we have seen in the region, but comfortably positions the company for self-funded growth in the future.”