Palenca raises US$4 million in funding led by Experian to transform credit assessment in Mexico
Palenca closed a US$4 million funding round led by Experian to strengthen its data infrastructure and develop artificial intelligence models.
Mexican startup Palenca, which focuses on income verification and credit risk assessment, announced the close of a US$4 million funding round led by Experian. The deal comes at a time when Mexico’s financial sector is seeking new sources of information to maintain and optimize its credit origination processes.
The company plans to use the funds to expand its technology infrastructure, strengthen its integrations, and advance the development of predictive models based on artificial intelligence.
Palenca’s bet on transforming access to employment data
One of the main challenges facing financial institutions is accessing reliable information about credit applicants’ employment and income. Without this data, it is harder to assess a person’s ability to repay, which can limit access to financing or increase the risk of granting unsuitable loans.
To meet this need, Palenca developed a data infrastructure that connects financial institutions with private sources of employment information. This technology allows organizations to verify employment, job stability, and income without relying exclusively on government platforms.
The startup identified this need several years ago and began building its own network of integrations with employers and private employment information systems.
A market calling for new information alternatives
The financial ecosystem faces a growing need for alternative data sources to strengthen credit assessment processes.
In this context, Palenca aims to position itself as a key player in the infrastructure that enables banks, fintechs, and other financial institutions to access employment information relevant to decision-making.
José Carlos Aguilar, the company’s co-founder and CEO, believes that a lack of visibility into the income of a large share of the population has historically limited access to credit.
“Banks don’t know how much most Mexicans earn, and that’s why credit keeps going to the same people. We’re going to change that,” Aguilar said.
Artificial intelligence and infrastructure expansion are priorities for the next phase
With the capital raised in this round, the company plans to strengthen its technology platform and expand the number of integrations available across its ecosystem.
It also aims to develop predictive models powered by artificial intelligence to improve financial institutions’ analysis and risk assessment processes.
The startup’s long-term vision is to become a fundamental part of Mexico’s financial system. According to Aguilar, the company aspires for credit origination in Mexico to rely heavily on the infrastructure it is building today within the next five years.
Experian’s strategic backing
Beyond the capital, Experian’s participation brings a strategic component to the company. The firm is one of the world’s leading credit information companies, reinforcing the deal’s significance for Palenca’s future growth.
Founded more than six years ago by José Carlos Aguilar, Pierre Delarroqua and Antoine Nguyen, the startup continues to expand its presence in Mexico’s fintech ecosystem, with the aim of modernizing how financial institutions access and use employment data to make credit decisions.
