2 minute read | March.22.2024
Grupago, a fintech startup pioneering digital microcredit for small businesses in Latin America, has secured $4.3 million in seed financing.
Orrick represented Grupago.
Deciens Capital led the investment with participation from Precursor Ventures, Clocktower Ventures and Twine Ventures, among other venture funds.
Founded in 2023, Grupago leverages artificial intelligence, group collateral and community distribution to extend credit to businesses that have been shut out of traditional lending avenues for small and medium-sized business.
Grupago launched its micro-credit business in October 2023 with the goal of filling a crucial gap in Latin America’s small business market: providing credit to millions of small business owners across Latin America.
The company is headquartered in Mexico City.
Grupago seeks to scale from Mexico to other parts of Latin America in time. Its first focus is on a group loan product focused on women entrepreneurs.
“Latin America has been experiencing a true renaissance in its financial services infrastructure and offerings,” said Grupago founder and CEO Uri Pomerantz. “Our approach builds on cutting-edge AI and non-traditional data sources while applying group lending techniques first developed by Nobel-prize winning research pioneered by Muhammad Yunus in Bangladesh.”
Orrick’s Larry Kane, Anthony Battey, John Calia and Desiree Rigilano advised Grupago.