Mexico's Kapital acquires and invests $50M in the purchase of Banco Autofin Mexico
Kapital, a Mexican fintech company has completed its acquisition of Banco Autofin México S.A. (BAM), a bank focused on retail and SME markets and invested $50 million in the purchase.
Kapital's acquisition of BAM is poised to revolutionize the financial services industry providing its users both small and medium-sized businesses with a variety of financial products including credit cards, automated investment solutions, and innovative artificial intelligence-driven services all in one place.
Currently working with over 11,000 businesses according to the company, it will also strengthen its digital channels (website and mobile application), with the intention of substantially improving the quality of service to its clients through the transformation of part of its branches to the Kapital House concept – free coworking with specialized wealth executives.
Notably, Kapital plans to maintain BAM's unique role as an exceptional automotive financing channel. This distinctive product offering is set to complement Kapital's existing business portfolio through an enduring partnership with Grupo Autofin. This underscores the importance of not just introducing new products but also pioneering and opening up entirely new markets and opportunities.
Still pending approval from Mexican financial authorities such as the CNBV, this acquisition adds to the new Fintechs + Bank ecosystem.
As part of its strategy, Kapital plans to invest significantly in electronic payment methods, promoting financial inclusion, and expanding its operations into countries such as Colombia, with Peru on the horizon highlighting its dedication to simplifying access to smarter financial solutions and contributing to sustainable growth for businesses and individuals.
This acquisition follows a $65 million in Series A funding in May 2023, less than a year after securing a $8.6 million seed round. Kapital was part of Y Combinator’s Winter 2022 cohort. To date, the Mexican fintech company has raised over $70 million in funding capital.
