Aplazo Secures $45M in Series B Funding to Expand BNPL Services in Mexico

Aplazo, a Mexican fintech startup specializing in Buy Now, Pay Later (BNPL) services, has successfully raised $45 million in a Series B funding round led by QED Investors. This investment is part of a larger $70 million equity financing that also saw participation from Volpe Capital, Oak HC/FT, Kaszek, and Picus Capital. Since its founding in late 2020, Aplazo has secured over $100 million in equity financing and an additional $75 million in committed debt funding.

Aplazo’s rapid growth and substantial financial backing reflect the strong demand for alternative payment solutions in Mexico, where a significant portion of the population remains underbanked. Aplazo’s BNPL model allows both offline and online merchants to offer fractional payment options to customers, including those without credit cards, thus promoting financial inclusivity in Mexico.

Under the leadership of CEO Angel Peña, Aplazo has effectively leveraged artificial intelligence (AI) to manage credit risks more efficiently. Peña highlights that AI integration has substantially reduced delinquency rates even as the company has tripled in size. This indicates Aplazo’s capability to scale operations while maintaining robust risk management. By utilizing AI to analyze customer data and predict credit risks, Aplazo makes informed decisions and mitigates potential losses.

Aplazo’s commitment to innovation and data-driven decision-making is evident in its strategic use of AI, which will continue to be a cornerstone of its risk management and growth strategies. The company has established partnerships with nearly 10,000 merchants, showcasing its rapid market expansion in Mexico.

A notable aspect of Aplazo’s operations is that the majority of its transactions come from in-store sales, highlighting the limited reach of e-commerce in the region. Despite this, Aplazo’s BNPL model has proven effective in boosting store sales and fostering customer loyalty. By offering alternative payment options, Aplazo meets consumer needs and benefits merchants by driving sales and encouraging repeat business.

As Aplazo strengthens its merchant relationships and expands its customer base, it is well-positioned to capitalize on the growing demand for flexible payment solutions in Mexico. The company aims to become the go-to payment method in Mexico, enhancing its offerings for both merchants and consumers. Aplazo’s impressive growth trajectory has been achieved without compromising financial stability, as evidenced by its near cash-flow breakeven status and a stable workforce.

This strategic approach has attracted new investors like Volpe Capital and garnered continued support from existing backers such as Oak HC/FT and Kaszek. In total, Aplazo has raised $175 million in funding since its inception, solidifying its position as a key player in Mexico’s payment landscape. As Aplazo continues to expand and innovate, its commitment to providing accessible and flexible payment solutions is expected to have a lasting impact on Mexico’s financial ecosystem, driving increased financial inclusion and economic growth.