Xepelin secured $230 million in debt and equity from Kaszek, a high-profile angel investor
$30 million in equity and $200 million in credit facilities have been secured by the startup Xepelin, which has created a financial services platform for SMEs in Latin America. The equity portion of the financing included participation from partners of DST Global and a bunch of other firms and founders/angel investors. Credit facilities were provided by LatAm and U.S. based asset managers and hedge funds.
Over its lifetime, Xepelin has raised over $36 million in equity and $250 million in asset backed facilities. Also participating in the round were Justo founder and CEO Ricardo Weder and Tiger Global Management partner. The mission of Xepelin was to change the fact that only 5% of companies in all LatAm countries have access to recurring financial services.
The pair said that they want all small and medium-sized businesses in LatAm to have access to financial services and capital in a fair and efficient way. Xepelin is built on a software as a service model that gives small and medium-sized businesses a way to organize their financial information in real time. Embedded in its software is a way for companies to apply for short-term working capital loans with just three clicks and receive the capital in a matter of hours.
It has developed an artificial intelligence-driven engine that allows it to make real-time loan approvals. Any company in LatAm can get a free software that helps them organize their information in real time, including cash flow, revenue, sales, tax, bureau info, and it's sort of a free CFO software. SMEs use Xepelin to improve their financial habits, get more efficient financing, pay their obligations, and collaborate effectively with clients and suppliers, generating relevant impacts in their industries.
The growth rate of Xepelin's clients in Mexico and Chile has been four times faster than when it started. More than $400 million has been lent to businesses in the two countries over the past 22 months. There is an asset-backed facility for more than $250 million and a $120 million portfolio of active loans.
The company has been growing at a rate of 30% per month. It now has more employees than it did a year ago. Xepelin has more than 60 partnerships with midmarket corporate companies that allow for their suppliers to onboard to its platform for free and gain access to accounts payable, revenue-based financing.
The company sells its portfolio of non-recourse loans to financial partners, which it says enhances its platform and data play. When we talk about creating the largest digital bank for SMEs in LatAm, we are not saying that our goal is to create a bank; perhaps we will never ask for the license to have one, and to be honest, everything we do is different from the banks, something They both share a passion for making financial services more accessible to small and medium-sized businesses in Latin America. "Our goal is to scale a platform that can solve the true pains of all SMEs in LatAm, all in one place that also connects them with their entire ecosystem, and above all, democratized in such a way that everyone can access it," he said.
In the future, the company believes several of its services will be useful for all companies in LatAm. "Xepelin has developed technology and data science engines to deliver financing to SMBs in Latin America in a seamless way." The team has deep experience in the sector and has proven a perfect fit for their product with the needs of the market.
The country was home to another large amount of funding earlier this week. NotCo, a food technology company making plant-based milk and meat replacements, closed on a $235 million Series D round that gives it a 1.5 billion valuation. NotCo received a $235 million round to expand plant-based food products.