Xepelin, the Chilean fintech that provides financial services for small and medium-sized companies, announced that global investment banking giant Goldman Sachs had provided it with a $140 million asset-backed securities credit line.
The proceeds will fuel Xapelin’s expansion in Mexico, where the company seeks to become a B2B payments market leader.
In addition, this investment will enable Xepelin to continue working to streamline transactional and financial processes and offer payment and credit services to more companies in the region.
So far, this is their most extensive credit line, which has a 3-year maturity and will be released in 2 stages: in the first, they will deploy $40M, and in the second, $100M.
“This large financing reflects the confidence that not only our customers but also our investors have in our business model. The most important thing for Xepelin is to solve the pains that companies face financially,” said in a note to the market Nicolas de Camino, Co-CEO of Xepelin.
‘Excited for support’
“We are very excited to have the support of Goldman Sachs. GS is one of the largest global investment banks in the world, and we are delighted to start a long-term relationship with them. With this important funding, we will look to continue to expand our services and thus provide digital payments and financing solutions to all B2B companies in Chile and Mexico,” added Sebastian Kreis. He also runs Xepelin as the Co-CEO.
Xepelin has operations in Mexico and Chile, with more than 15,000 customers, generating more than $1.2 billion in financing.
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This Goldman Sachs financing further contributes to the $230 million raised, between debt and equity, in a Series A round in mid-2021 and $111 million raised in a Series B round led by Avenir and Kaszek.
This Series B round had counted on the participation of major international funds such as PayPal Ventures, Wellington, DST Global, Battery Ventures, MSA Novo, Endeavor Catalyst, FJ Labs, and Picus, among others.
Founded in 2019 by Nicolas de Camino and Sebastian Kreis, Xepelin is based on a SaaS model designed to give SMEs a real-time way to organize their financial information. Integrated into its software is a way for companies to apply for short-term working capital loans.
AI to understand risk
Xepelin also uses artificial intelligence technology to gather public information from companies, such as data from tax agencies, creating a tool to understand credit risk better.
So far, the firm has generated more than $1.2 billion US in financing for regional companies.
After consolidating strong participation in Chile, Xepelin entered the Mexican market and quickly positioned itself as a leader in the sector.
Since its Series A, the company has grown to serve more than 5 times the number of clients in Chile and Mexico. It has also increased revenues 60 times in Mexico, where it launched Payments. This new B2B payments product allows companies to organize and automate their payments to their suppliers, with and without financing.
Mexico, Xepelin’s bet to expand its operations in Latin America, has a market of 30 million companies and is where the company intends to invest more than $200 million in the coming years.
