Kapital Raises Additional Capital for Cash Flow Monitoring in Latin America
Kapital, a Mexican fintech company founded by Rene Saul and Fernando Sandoval in 2020, recently announced that it raised $20 million in a Series A round and $45 million in a debt facility. This funding comes less than a year after securing an $8.6 million seed round for the company.
Providing Financial Solutions for Businesses Across Latin America
Saul and Sandoval's main goal when starting Kapital was to provide a platform catering to small and medium-sized businesses in Latin America. They sought to build a comprehensive financial suite that helps businesses with their cash flow, credit, and investments seamlessly. The platform gives customers an enterprise reporting platform that enables them to manage their business expenses, pay bills in advance, and view cash flow. Additionally, Kapital has developed an algorithm that can predict future revenue and help customers with future loan applications.
Saul and Sandoval noticed that many companies lacked visibility into their finances and did not know who they owed money to or who they needed to collect money from. With Kapital, customers can access a complete solution that helps companies organize their business first, allowing them to grow in the future.
New Investors and Plans for Expansion
Kapital was part of Y Combinator's Winter 2022 cohort and expanded into Colombia in the past year. It also launched Kapital Flex, a way to defer payments to suppliers and business invoices. The company is now working with over 11,000 businesses.
Niya Partners and Tribe Capital co-led the Series A round, joined by a group of investors that included Dropbox co-founder Arash Ferdowsi, Marbruck, Broom Ventures, FoundersX, Cresset/True Capital Management, Pioneer Fund, Kube VC, and MyAsia VC. Accial provided the debt facility. In total, Kapital raised over $30 million in equity and $145 million in debt.
Plans for the capital include product development and additional expansion in Colombia. "The whole idea is how you give a company the most important SaaS where you control the money," Sandoval said in an interview. "And, also how can you make it powerful because right now, legacy players control the money. We can provide all this data to understand the business and help customers make decisions."
Editorial and Advice
With the recent funding, Kapital is well-positioned to expand its footprint in Latin America and provide much-needed financial solutions to businesses in the region. Small and medium-sized businesses often struggle with managing their finances, and Kapital's platform offers a comprehensive solution that can help businesses grow.
Kapital's vision of providing businesses with complete financial visibility and control is aligned with modern businesses' ever-growing needs. As a commentator for current affairs, it is worth noting that Kapital's approach to monetizing fintech is distinct from many other ventures and could be a model for other companies.
In conclusion, the recent funding for Kapital is a welcome development for the fintech industry in Latin America, and the company's expansion plans show how it is committed to providing valuable services and contributing to the region's economic growth.
