Oikocredit leads US$ 10 million equity-and-debt seed funding for Mexican fintech YoFio
Press releases
New investment in YoFio’s digital financial services platform will support growth of inclusive finance in Mexico
Amersfoort, the Netherlands– Social investor Oikocredit is proud to announce its latest equity investment in YoFio, a fast-growing fintech platform for Mexican micro businesses. Oikocredit has led a US$ 10 million equity-plus-debt seed investment round involving 500 Global, Innogen Capital, G2 Fintech Fund, Cauris Finance and other angel investors.
Oikocredit and its partners’ investment will support YoFio in its work of promoting financial inclusion in Mexico. Nearly 60% of private companies in Mexico are micro enterprises. Yet, despite their importance for economic growth and job creation, these small businesses are ‘invisible’ to most financial institutions and face barriers when trying to access credit. YoFio was created to unlock tech-driven and innovative sources of financing for this underserved and underbanked segment.
YoFio’s proprietary technology and wide network of wholesaler partnerships enable an easier, faster, more competitive and more flexible offering compared to traditional banking solutions. To date, YoFio has disbursed US$ 8 million in digital loans to more than 3,500 client merchants and micro entrepreneurs with a multi-sectoral approach. It plans to close 2024 with a total portfolio of US$ 5 million.
About YoFio
YoFio is a fast-growing Mexican fintech platform that offers financial solutions to help micro and small businesses grow through easy, fast and secure credit. Specialising in providing working capital financing to informal microgrocery stores, YoFio utilises its proprietary AI-driven underwriting model to estimate sales, free cash flow and risks of closure.
Currently operating in the Metropolitan Area of the Valley of Mexico, Pueblamunicipality and the city of Guadalajara, YoFio’s revolving credit lines with up to 14 days’ interest-free financingempower microentrepreneurs to purchase inventory from wholesalers, expand inventory size and address unforeseen emergencies.
Through its commitment to innovation and financial inclusion, YoFio is transforming the landscape of microbusiness financing in Mexico, driving economic growth and helping local communities build resilience.
About Oikocredit
Social impact investor and worldwide cooperative Oikocredit has nearly five decades of experience funding organisations active in financial inclusion, agriculture and renewable energy.
Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.
Oikocredit finances more than 500 partners, with total development financing capital outstanding of € 1,037.2 million (at September 2023). For more information, visit www.oikocredit.coop
