Mexican mobile payments company Epesos has reportedly raised US$6 million in business capital, with Spanish banking giant Santander’s venture capital arm InnoVentures being the biggest contributor.
Other institutional investors that participated in the round include VilCap Investments, Pomona Impact, and Fiinlab, the innovation lab owned by Gentera.
Epesos offers a revolving line of credit and is particularly popular among small- and medium-sized businesses (SMBs) that don’t have an account with a major bank.
The fintech firm is venturing into the labor community by offering employees quick access to cash when they need it. Reports say that its low-cost, short-term loan is the vital seed capital for hundreds of small enterprises across the country.
Epesos is building a new payment platform that will allow borrowers to receive and repay funds through a mobile wallet. For Santander, the investment helps gain a foothold in the Latin American fintech market.
Santander’s venture capital fund stepped into the fintech market in 2014 with US$100 million, then in July this year it added another US$100 million to its coffers. So far, it has invested in 17 startups around the globe, the investment in Epesos being its first in Latin America.
“Our investment in Epesos is a proof of our commitment to global financial inclusion and helping small businesses prosper – something Santander InnoVentures has made a priority,” said Manuel Silva Martínez, head, investments, Santander InnoVentures.