Decentralized credit platform Credix said it has secured a $11.25 million Series A round as it seeks to expand in Latin America.
Credix is a Solana-based credit marketplace that matches institutional investors with fintechs in emerging markets. It launched in Brazil in 2021 and hopes to start operations to Mexico and Colombia later this year, the company said in a statement on Tuesday.
Also participating in the round were Valor Capital Group, Victory Park Capital and ParaFi Capital. The chairman of Itaú Latam, part of the region's biggest bank, Itau, Ricardo Villela Marino also participated as a private investor. Credix's latest raise builds on a $2.5 million seed round it secured in late 2021, which ParaFi also participated in.
Credix, which describes itself as "a next-generation credit infrastructure to give borrowers in emerging countries access to previously untapped capital," provides opportunities for investors to underwrite individual deals or passively invest through a lower-risk liquidity pool. Fintechs using the platform receive funds in stablecoins, which they then convert to local currency to lend.
Emerging markets tend to have low credit penetration, with traditional financial institutions unwilling to finance businesses and individuals perceived to be higher risk. That's created ample opportunity for fintech projects to flourish. Last year, investment in fintech in Latin America reached $5 billion over 120 deals, up from $2 billion and 82 deals the year earlier, according to KPMG.
"We are unlocking global debt capital markets," Credix founder and CEO Thomas Bohner told The Block. "DeFi allows us to pool capital more effectively, smart contracts drive waterfalls and automated payment flows, tokenization provides for increased transparency and payment provenance."
More than 25 funds are using Credix's platform, which according to the company has enabled more than $20 million in financing.
"We believe Credix is rebuilding an antiquated system through blockchain technology and solving a real-world problem at a critical time for the industry,” ParaFi Capital Managing Partner Ben Forman said.
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