Colombian Fintech Finkargo, which supports imports by MSMEs, received a USD 75 million credit facility

Colombian Fintech Finkargo, which supports imports by MSMEs, received a USD 75 million credit facility

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Finkargo, a startup founded a year ago in Bogota, dedicated to supporting operations and providing financing for micro, small and medium enterprises (MSMEs) to trade internationally, announced today that it has secured a structured loan of USD 75 million from Community Investment Management (CIM), a San Francisco-based investment fund that has previously invested in the region in the fintech companies Stori (Mexico) and Xepelin (Chile).

The startup announced that the funds will accelerate the growth of more than 600 micro, small and medium enterprises in Colombia. Alejandro Arenas, CIM’s Chief Investment Officer, said in a statement that he is excited to invest in a company that, in his words, is transforming financial inclusion and the growth of MSMEs in the region. “Finkargo’s mission is aligned with our vision to support financial technology solutions that generate real and scalable impact in underserved sectors,” he said.

In the same document, Finkargo says that financing is one of the barriers that most affects the internationalization of this type of company. “Ninety percent of foreign trade transactions require some form of financing, insurance or guarantee, reflecting prominent access to finance to engage in it. Globally, however, MSMEs face a foreign trade rejection rate of over 50%. In Latin America alone, estimated that there is a foreign trade financing gap of $350 billion, the company says.They then list some advantages they offer this type of business: greater bargaining power with suppliers, product diversification, flexibility in raising capital and guarantees adapted to the reality of the business.

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Finkargo’s CEO, Santiago Molina, said: “If the SMEs we finance are able to accelerate their growth and profitability, our goal will be met. We will then be able to continue to set investment targets that are not only larger, but also more inclusive of the the companies that still cannot access the international market due to lack of capital.”

Prior to this funding, Finkargo had a seed round of USD 7.5 million in April, in which Quona, Flybridge, Maya Capital and One VC participated.

Main image: Finkargo

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