IDB Invest provided US$40m in debt financing to AlphaCredit, a Mexican lending platform for individuals and SMEs in Mexico and Colombia. SoftBank led a US$125m Series B in 2020.
(IDB Invest) – IDB Invest, a member of the IDB Group, provided a loan to AlphaCapital S.A.S. (AlphaCredit) for an amount in Colombian pesos equivalent to $40 million. The resources will support the expansion of AlphaCredit’s lending portfolio targeting retirees and pensioners, independent workers, and micro, small and medium-sized enterprises (MSME) through digital platforms. The portfolio also includes loans guaranteed by the Government of Colombia to mitigate the economic impact of the COVID-19 health crisis.
This is the first IDB Invest transaction with a non-bank technology-based financial institution (Fintech) in Colombia. This deal is expected to increase financial inclusion to vulnerable and underbanked people including retirees and pensioners known as the silver economy, particularly those from low socioeconomic segments. In addition, it will provide technological innovation through the development of new lending portfolios and improved financial products, as well as better access to financial services to independent workers and MSME in Colombia.
The investment is expected to contribute to five United Nations Sustainable Development Goals (SDGs): No Poverty (SDG 1), Gender Equality (SDG 5) and Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9), Reduced Inequalities (SDG 10).
The transaction will be accompanied by two technical assistances to implement an action plan to strengthen the borrower’s corporate governance and develop a market study targeting MSME with an emphasis on women-led ones and help develop financial education programs.
The deal falls under the collaboration agreement signed between IDB Group and SoftBank Latin America Fund with a view of promoting tech-enabled solutions for inclusion across the region.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $13.1 billion in asset management and 385 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About AlphaCapital
Founded in 2011, AlphaCredit© is one of the fastest growing technology-enabled platforms for financial services in Latin America, providing consumer loans to individuals and financial solutions for MSME in Mexico and Colombia. The company is a leading technology platform, which continues to grow through innovative solutions, cutting-edge technology, and its resilient business model.
About SoftBank
The SoftBank Group invests in breakthrough technology to improve the quality of life for people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes telecommunications, internet services, AI, smart robotics, IoT and clean energy technology providers; the SoftBank Vision Fund, which is investing up to $100 billion to help extraordinary entrepreneurs transform industries and shape new ones; and the SoftBank Latin America Fund, the largest venture fund in the region.
