Kapital Raises $165M to Empower LatAm SMBs with Financial Insight

Mexico City-based digital platform and bank, Kapital, secures $40 million in Series B funding led by Tribe Capital, accompanied by Cervin Ventures, Tru Arrow, MS&AD Ventures, and Alumni Ventures. In addition to the Series B, Kapital raises $125 million in debt financing, bringing the total funding to $165 million. Co-founders Rene Saul and Fernando Sandoval aim to empower Latin American SMBs with financial visibility through data and AI. Kapital's AI-driven platform enables small businesses to manage cash flow in real-time and access underwritten loans, addressing the limited access to bank financing for small firms in the region.

Despite making up 90% of businesses globally, only 10.5% of small firms in Mexico have full access to bank financing. Kapital, with its rapid growth and the acquisition of Banco Autofin Mexico S.A. in September, focuses on providing financial information to over 80,000 small enterprises. The funding will fuel R&D and technological development to expand product offerings and enhance cross-border capabilities. Kapital's ultimate goal is to establish a global bank, connecting people worldwide through embedded finance options and efficient money transfers.

CEO Rene Saul emphasizes the transformative impact of Kapital's AI platform, enabling clients to control business operations and make informed decisions. With a sixfold growth in revenue over the past year, Kapital aims to leverage the additional funds to advance predictive analytics technology, allowing SMB clients to optimize profits by choosing new suppliers. The strategic investments position Kapital to further its mission of creating a global bank and fostering financial inclusion for businesses across Latin America.