Mexican Fintech Konfío to Acquire Gestionix to Support SMEsBy Andrea Villar | Tue, 12/08/2020 - 10:21
Mexican fintech Konfío, focused on providing loans to SMEs, detailed in a statement on Tuesday that it will acquire Gestionix, a company that develops cloud enterprise resource planning (ERP) systems for SMEs and their accountants to ensure an agile and efficient management of their businesses.
“After exploring several options, we saw in Gestionix the product with the best potential to become the ERP of choice for SMEs and accounting firms in Mexico, as well as the team with the best capacity to achieve it," said in a statement CEO of Konfío David Arana.
The adoption of Gestionix’s platform by Mexican SMEs has been the result of efforts to increase their competitiveness, explained David Terán, Founder of the company. "Gestionix offers a special platform for accountants and tax advisors, native in the cloud and with functionalities based on artificial intelligence, which facilitates the service to SMEs and is fully compliant with the standards established by SAT,” he pointed out
Due to the pandemic, according to HSBC data, 55 percent of SMEs closed and sales flows fell by 30 percent. In Mexico, according to INEGI data, SMEs generate 72 percent of jobs. According to information provided by the companies, the acquisition will be completed before the end of the year.
In October 2019, Softbank invested US$100 million in Konfío, founded in 2014. Just three months earlier, Goldman Sachs lent the same amount to the Mexican fintech. Since Softabank’s investments in Latin America in 2019, the region has become an attractive location for equity funds. The fintech sector, for instance, has received investment of just over US$8.13 billion in 2020, according to the LATAM Fintech 2020 report by KoreFusion.
The report shows that the payments, lending and digital banking segments have received more than 95 percent of the funding. Brazil is positioned as the country that has received the most investment with just over 76 percent of the total. It is followed by Mexico with 16 percent and Argentina with 3.6 percent. KoreFusion highlights Konfío’s role in these figures since until then, it had received US$250 million between Goldman Sachs and Victory Park Capital.