G2 Fintech Fund invests in Quipu, the platform financing informal businesses
G2 Fintech Fund invests in Quipu as part of its $ 3.5 million seed round
G2 Fintech Fund invests in Quipu, as part of its seed round, which brings the company’s total funding across its pre-seed and seed rounds to $ $3.5 million. The round was led by Bancolombia and included other notable investors such as IDB Lab, Caffeinated Capital, Flori Ventures and Vertical Partners.
Quipu aims to empower informal entrepreneurs across LATAM by giving them easy, fair, and alternative access to capital. Through its app, Quipu Bank, it provides access to working capital through a 100% digital process. The company creates its own alternative credit score based on users’ activity across various apps and digital channels, data about their businesses, referrals and contact networks, as well as their transactions through banks and digital wallets. This enables microbusinesses to build a credit history and access the financial system.
In LATAM, 99.5% of companies are MSMEs, and 90% of these are microbusinesses. They face limited access to formal credit and often end up borrowing from predatory lenders that charge up to 800% interest, contributing to a financing gap of $ $1.4 trillion. Quipu’s loans are revolving and designed for productive use, such as purchasing business supplies or equipment. They are disbursed to digital wallets or directly to suppliers in the company’s partner network, and repayments are automatically collected from the customer’s wallet or bank account.
Jorge González Gasque, General Partner at G2 Fintech Fund, says: “We’re excited to accompany Quipu on this journey. Quipu brings a great deal of technology and a first-rate team capable of solving financing problems for people operating in the informal economy who need financial support to grow and succeed.”
“G2 is a strategic ally for us because it gives us insight into the Mexican market. Its team was a great collaborator even before investing in us. We love G2 because it’s a fund dedicated to fintech that believes in our mission and wants to help us scale beyond Colombia,” says Mercedes Bidart, CEO and co-founder of Quipu.
Today, Quipu operates in Colombia and has grown in the market through strategic partnerships with financial system leaders such as Claro Pay and Bancolombia, as well as through its network of merchandise suppliers that offer credit to their customers. These partnerships have enabled month-over-month growth of 13.58% since 2022 in terms of customers or loan portfolio. In addition, 69% of its customers are repeat borrowers, and the data shows that the larger the loan, the lower the default rate.
About G2MomentumCapital (g2momentum.capital)
G2 Momentum Capital is a holding company for venture capital investments focused on early-stage startups. Its goal is to find passionate, talented partners with innovative and disruptive business offerings, build synergies, pool resources, and provide comprehensive services to help the best companies scale and establish themselves.
