Sebastian Kreis
Co-Founder and CEO
Xepelin
/
Expert Contributor

The Passion to Help Companies That Have No Financing

By Sebastian Kreis | Tue, 11/30/2021 - 11:20

Launching and scaling a business involves taking big risks and you don't always have the guarantee that everything will turn out well. Developing an idea and making it come true requires a mental state that allows you to celebrate victories and overcome failures without lowering your conviction and energy. However, great ideas become a successful reality when passionately pursued.

Entrepreneurs are dreamers with a common goal: To make the world a better place. Xepelin was born under that premise.

I come from an immigrant family, so the feeling of building something from scratch has always been there. From a very young age, I learned that entrepreneurs have the ability to build and draw the realities of the environment that surrounds them.

I started as an engineer, but my life has been dedicated to finance and scaling new stuff. I started in Chile, in investment banking, doing a lot of novel things for that time, from creating a new structure for a capital market bond for smaller companies to developing the investment banking practice in a new market. From there, I started my first company, where I was able to lead it to scale.

Looking to discover the fintech world, I traveled to the US and took advantage of the opportunity to visit the offices of Uber and other startups that were being born. The world has changed and there are many opportunities for innovative business. You need talent and execution, but ideas are plentiful. Then I went to the Bay Area to study my MBA and was obsessed with the idea of bringing the financial engineering that is generated for large companies in banks and investment banks to 95 percent of companies in all Latin American countries that do not have access to recurring, quality and fair financial services.

After my experience in the Bay Area, at the Boston Consulting Group, I developed fintech products for different financial institutions. There I met Nicolas de Camino, co-CEO of Xepelin, and we partnered to found our company with the objective of providing financial services to more than 1 million SMEs in Latin America, where less than 5 percent of the SMEs in each country have access to financial services and recurring financing. In addition to being analogs, these are not focused on the client or on solving their pains, but on the opportunity to extract liquidity from them. Xepelin's mission is to change this forever.

The reality of the environment is no different in Mexico; If we consider that there are around 7 million SMEs in the country, this means that more than 6 million of these companies do not have access to financial services that solve their needs. There are many financial institutions but they always focus on the same top 5 percent of companies.

We noted, for example, that SMEs don't have access to their important financial information in real time, since, unlike larger companies, small and medium-sized companies rarely have a dedicated team to deal with financial issues. As a result, their working capital cycles and payment flows are not always accurate and they often have to solve problems instantly, limiting their ability to plan and scale.

That's why we decided to create a platform that can solve the true pains of SMEs, all in one place and that also connects them with their entire ecosystem. Above all, it is democratized in such a way that everyone can access it, regardless of whether you are a company that sells trillions of dollars or just a thousand dollars, getting the same service and conditions. From the beginning, we put the SME at the center of everything, treating them as real clients, which sounds almost obvious, but which in practice has been by far the most neglected and forgotten segment by financial services. Companies needed a true financial partner to be all in in their day-to-day tasks.

With Xepelin SaaS, companies can see their information in real time in an orderly manner. In this way, they can understand it in its entirety and make use of it to make much more informed decisions to manage their business and apply for any type of financing. With this platform, we connect with our clients and generate relationships of loyalty and trust because we truly believe in the power of promoting SMEs beyond just being lenders. The satisfaction after having helped a client is a unique and indescribable feeling.

Our growth, product and technology teams are very strong. We developed a state-of-the-art user experience and an underwriting AI-driven engine that enables us to make real-time decisions in order to approve every revenue financing. In fact, we already have a Xepelin score for each SME and potential financing they can apply for, even before they do. This gives them a seamless experience and it is why we have a +75 NPS. Thus, we have the healthiest portfolio and delinquency by far in the Latin American SME segment. Ultimately, we not only build software, but also a product whose first objective is to solve the pains that companies experience.

Every step we take has that vision and we want to impact as many SMEs as possible. We trust that by offering digital services and helping them understand their financial situation, while allowing them access to revenue financing and payments, the impact is not only on the company itself, but on the entire value chain in which it operates.

We are building a unique ecosystem between midsize companies and their suppliers and clients, which uses the power of technology and data science to solve the real pains of the symbiotic relationship between customers and suppliers throughout the region.

What Xepelin is today is the result of infinite teamwork, of trusting that we can change reality and with it the financial scenario of SMEs in Latin America. That has allowed us to grow exponentially. What moves us is the passion to help our clients and their families. That passion that began with a few, today, proudly, is felt across the entire company.

Photo by:   Sebastian Kreis

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