Mexican BNPL Firm Aplazo Secures $70 Million in Equity Financing

Mexican BNPL platform Aplazo secures $70 million in equity financing, led by QED Investors, to enhance its product offerings and expand its market presence.

Aplazo, a leading Buy Now, Pay Later (BNPL) platform based in Mexico, has successfully raised $70 million in equity financing. The funding includes a significant $45 million Series B round, led by QED Investors. New investor Volpe Capital, along with existing investors Oak HC/FT, Kaszek, and Picus Capital, also participated in the round. Since its launch in late 2020, Aplazo has amassed over $100 million in equity financing and $75 million in committed debt funding.

This latest financing round follows a period of impressive growth for Aplazo. The company has experienced a threefold increase in revenue, driven by its expanding market share among both online and offline merchants. Aplazo has been operating near breakeven in recent months, underscoring its strong financial performance.

In-store transactions currently represent more than half of Aplazo’s business, accounting for approximately 93 percent of total retail sales in Mexico. Remarkably, 40 percent of Aplazo’s users have no prior credit history, yet the company maintains a credit approval rate exceeding 80 percent, with credit loss rates remaining in the low single digits.

Angel Peña, CEO and co-founder of Aplazo, highlighted the company’s mission to fill market gaps by offering better payment and financing products. “Our ability to provide ubiquitous BNPL services enables 88 percent of Mexicans who do not have credit cards to make everyday purchases and pay later in installments,” Peña stated. This approach has resonated well with Mexico’s underserved population.

Peña also noted that Aplazo merchants benefit from a suite of marketing technologies and AI tools designed to provide unique customer insights, helping them to optimize their business operations. The newly secured capital will be used to further develop Aplazo’s product offerings, leveraging AI capabilities to better understand and meet the needs of consumers and merchants, and to enhance risk management decisions.

Aplazo’s continued growth and innovation in the BNPL sector signal its commitment to transforming the financial landscape in Mexico, providing more inclusive and accessible financing options for consumers and merchants alike.