The Women’s World Banking Asset Management and IDC Ventures lead a Series B round of financing to promote financial inclusion in Peru and Mexico.
Three out of four stores can’t afford the stock they need for their clients, and only half of the stores have access to enough credit.
MIAMI, Oct. 11, 2022 — Tienda Pago, the leading short-term credits lender based in Peru and Mexico, has announced closing a Series B investment led by the Women’s World Banking Asset Management and IDC Ventures for $12 million.
Tienda Pago’s innovative partnerships, technology, and process have attracted impact investors and traditional VCs. Women’s World Banking Asset Management and IDC Ventures led this Series B round of investment in which Alumni Fund contributed as a new investor. Current investors Kaszek, QED, Agrega Partners, Accion Venture Lab, and Oiko Credit also participated in this round.
Tienda Pago provides micro, small, and medium enterprises with working capital via short-term stock financing on its digital platform. According to the Peruvian Minister for Production, 99.5% of companies in the country are SMEs. In Mexico, SMEs represent 70% of formal employment. Tienda Pago helps financial inclusion in the region by providing credit to unserved and underserved SMEs, especially women-owned.
“Small businesses are fundamental drivers of economic development in Latin America, yet continue to lack access to finance,” says Alejandro Rodriguez, Partner at IDC Ventures. “SMEs receive only 12% of total formal credit in the region, though they represent the vast majority of businesses and the majority of employment. Tienda Pago works with product distributors to provide seamless cashless transactions that benefit both store owners and suppliers, providing value at both ends of the supply chain“.
“Tienda Pago’s business model helps entrepreneurs grow in the region and make an impact on our community,” said Dan Cohen, CEO and founder of Tienda Pago. “75% of SMEs can’t buy all the stock they need to serve their clients, which means a loss of opportunities, and just half of the stores have sufficient access to financial services. This is why Tienda Pago is essential to serve the financial needs of convenience stores in developing regions“.
“We are very excited to partner with Tienda Pago on this important journey and provide access to finance for small business owners who are the cornerstone of economic development in the region,” said Yrenilsa Lopez, Principal Investment Officer at Women’s World Banking Asset Management.
Tienda Pago has partnered with Consumer Product Goods to finance their stock for Convenience Stores to help them reduce trust risks while increasing sales and improving customer experience through frictionless operations (signup, collection, and default management).
About Tienda Pago
Tienda Pago is a fintech company that operates in Mexico and Peru. TP Provides short-term credit to small convenience stores in the region to buy stock from established Consumer Good Companies (CPGs) and distributors.
Tienda Pago allows stores to receive stock for a week and pays those deliveries directly via bank transfer to the stock suppliers. Tienda Pago uses innovative mobile technology and business models to reach a financially underserved population to foster financial inclusion.
For more information, visit https://www.tiendapago.com/.
About IDC Ventures
IDC Ventures is an investment platform that partners with innovative and disruptive tech companies, investing from Series A through growth. IDC Ventures focuses on companies in the fintech and marketplace verticals in Europe, the United States, and Latin America. To date, IDCV has raised over $500 million for successful portfolio companies such as Lunar, CookUnity, Curve, Bipi, RecargaPay, and Securitize, among many others.
For more information, visit http://www.idcventures.com/.
About Women’s World Banking Asset Management
Women’s World Banking Asset Management (“WAM”) invests in innovative inclusive finance companies in the emerging markets, guiding them to capture the substantial market share of financially under-served women and the largely untapped talent pool of women staff and leaders. WAM’s first Fund was a pioneer of gender-focused impact investing in inclusive financial service providers. WWBCP II expands this gender-focused investment strategy with a dedicated technical assistance facility to help portfolio companies achieve strategic objectives toward gender inclusion.
For more information, visit https://www.womensworldbanking.org
Women’s World Banking Asset Management