Daily News: October 10, 2019

Goldman Sachs Provides $100MM Facility to Konfío


Mexican fintech lender Konfio secured a $100 million credit facility from Goldman Sachs.
Proceeds will be used by Konfio to provides unsecured working capital to small and midsize companies.

“We came across Goldman at several Latin America fintech events, and we started conversations,” said David Arana, Konfio founder and CEO. “I think they’re the right partners to help us continue to make an impact.”

Konfio uses its technology to analyze credit behavior and collect other types of data, enabling it to respond to companies immediately and make disbursements in as little as 24 hours. Konfio’s interest rates are half those charged by the traditional banking industry, according to Arana.
Technology also helps Konfio keep non-performing loans under control. The delinquency rate on the firm’s loan book was 4.8% in 2018, compared with 5.4% for the banking industry, he said.

The plan is to expand into using guarantees or collateral, making it possible to do bigger loans than Konfio’s current average of $20,000.

In Mexico, Mijares, Angoitia, Cortés y Fuentes advised Konfío. In the U.S., Gunderson Dettmer Stough Villeneuve Franklin & Hachigian advised Konfío. Mayer Brown advised Goldman Sachs.