Xepelin Raises $230M to Expand Chilean Fintech Services

Xepelin Secures $30 Million Equity and $200 Million in Credit

Xepelin, a Chilean startup revolutionizing financial services for small and medium-sized enterprises (SMEs) throughout Latin America, has successfully raised $30 million in equity funding. Additionally, the company secured $200 million in credit facilities to further expand its operations.

Funding Details and Investors

Kaszek Ventures, a leading LatAm venture fund, spearheaded the equity investment. Participation also came from partners at DST Global, alongside a diverse group of firms and individual angel investors.

The credit facilities were provided by LatAm- and U.S.-based asset managers and hedge funds, including Chilean pension funds. To date, Xepelin has amassed over $36 million in equity and $250 million in asset-backed facilities throughout its history.

Additional Investors in the Round

Further investment was contributed by Picus Capital, Kayak Ventures, Cathay Innovation, MSA Capital, Amarena, and FJ Labs. Gilgamesh Ventures also participated.

A notable group of angel investors joined the financing, including Kavak’s founder and CEO, Carlos Garcia; Jackie Reses, Executive Chairman of Square Financial Services; Justo’s founder and CEO, Ricardo Weder; John Curtius, a Partner at Tiger Global Management; Hans Tung from GGV; and Gerry Giacoman, founder and CEO of Clara.

Xepelin’s Mission and Founding

Founded in mid-2019 by Nicolás de Camino and Sebastian Kreis, Xepelin was established with a clear objective: to address the significant gap in access to financial services for businesses in Latin America.

The founders articulated their vision, stating their commitment to ensuring all LatAm SMEs have access to fair and efficient financial services and capital.

The Xepelin Platform

Xepelin operates on a SaaS model, providing SMEs with a platform to manage their financial data in real-time. The software integrates a streamlined application process for short-term working capital loans.

Companies can reportedly apply for loans “with just three clicks” and receive funding within hours, according to the company.

AI-Powered Underwriting

The company has developed an AI-driven underwriting engine, enabling real-time loan approval decisions. This technology allows for faster and more efficient assessment of creditworthiness.

De Camino explained that any company in LatAm can quickly onboard and gain access to a free software solution for organizing financial information, including cash flow, revenue, sales, and tax data – essentially a free CFO SaaS.

He further emphasized the positive cycle created: SMEs improve financial practices, secure better financing, fulfill obligations, and enhance collaboration with partners and suppliers, ultimately impacting their respective industries.

Growth and Current Performance

Currently, Xepelin serves over 4,000 clients across Chile and Mexico. Mexico is experiencing a growth rate “four times faster” than the initial launch phase in Chile.

Over the past 22 months, the fintech has disbursed over $400 million in loans to SMBs in these two countries. The company currently holds an active loan portfolio of $120 million, supported by over $250 million in asset-backed facilities.

The founders reported a consistent monthly growth rate of 30%. The team has expanded to 110 employees, a significant increase from 20 a year ago.

Vision for the Future

The founders envision Xepelin as the leading digital bank for SMEs in LatAm, but clarified that their approach differs significantly from traditional banking models. They describe it as a “non-bank” – a focused, alternative financial solution.

Both de Camino and Kreis expressed their dedication to increasing financial accessibility for SMEs throughout Latin America, drawing on their extensive experience in various areas of finance.

Kreis stated their aim is to create a platform that addresses the core challenges faced by all SMEs in LatAm, connecting them with their ecosystem and ensuring equal access, regardless of company size.

Focus and Future Services

Currently, Xepelin primarily serves the B2B market, but anticipates that several of its services will prove valuable to all SMEs and companies in LatAm in the future.

Industry Recognition

Nicolas Szekasy, co-founder and managing partner at Kaszek Ventures, highlighted Xepelin’s innovative technology and data science engines, which facilitate seamless financing for SMBs in Latin America.

He also praised the team’s deep sector expertise and the strong alignment between their user-friendly product and market needs.

Other Funding News in Chile

This funding announcement follows another significant investment in Chile earlier this week. NotCo, a food technology company specializing in plant-based alternatives, secured $235 million in a Series D round, achieving a $1.5 billion valuation.