Tec graduate Francisco Padilla and his partner David Arana supported startups by providing them with simple loans.
It seems that the age of startups has dawned in Mexico. Konfío, a Mexican company founded by Tec graduate Francisco Padilla, has become only the fourth unicorn company in the country, after Kavak, Clip, and Bitso.
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The company joined the other Mexican startup unicorns after reaching a $1.3 billion peso valuation as a result of its latest capital investment.
This round of investment was led by Tarsadia Capital and QED Investors, and supported by Konfío’s existing shareholders: Softbank, VEF, Kaszek Ventures, IFC, and Lightrock.
According to a statement, the new investment will increase the number of Konfío’s financial solutions for growing companies, a strategy based on three pillars: well-timed financing, business management, and payment processing.
Last August, the company acquired B2C tool Sr. Pago to extend its billing and business management solutions.
“Sr. Pago facilitates financial inclusion and contributes to the growth of all types of businesses thanks to its wide range of products, technology, security, and various payment options,” said David Arana, Founder and CEO of Konfío.
This was the company’s third purchase, after acquiring Astro in 2019 and Gestionix in late 2020.
In 2014, young entrepreneurs David Arana, a financial services specialist, and Francisco Padilla, who holds a degree in Computer Technology Engineering (ITC) from Tec de Monterrey, founded Konfío with the aim of supporting other entrepreneurs.
The founders had seen an opportunity since 2008, when the mortgage crisis made it more difficult to get loans.
“Banks have been running scared since 2008. This means that even today, they don’t want to provide financing if you aren’t América Móvil or an ultra-safe company. There wasn’t a company dedicated to giving opportunities to small businesses,” said Padilla when he appeared on the Expansión list of 30 Promising Leaders.
Both young entrepreneurs thought that providing credit to SMEs could be a great business in an emerging market like Mexico, as banks demanded many requirements in order to provide loans.
Although Padilla’s parents advised him not to go to Mexico City, he made the decision to do so. Now, his dream has become a unicorn.