You don't have javascript enabled.

Aplazo secures $70M in equity financing to boost BNPL in Mexico

This funding round, led by QED Investors and supported by Volpe Capital and existing investors, fuels the Aplazo mission for financial inclusion and innovation in accessible payment solutions.

  • Editorial Team
  • May 20, 2024
  • 3 minutes

Aplazo, an omni-channel payment platform, providing flexible payment solutions and commerce enablement tools, has secured $70 million in additional equity financing, including a $45 million Series B.

The funding round was led by QED Investors, with participation from new investor Volpe Capital and existing investors Oak HC/FT, Kaszek, and Picus Capital. Since its launch in late 2020, Aplazo has raised over $100 million in equity financing and $75 million in committed debt funding.

Aplazo’s revenue has tripled due to its growing market share among online and offline merchants, and the company has been operating near breakeven recently. The new capital will be used to enhance Aplazo’s product offerings for consumers and merchants, focusing on product innovation and AI capabilities to better understand customer needs and improve risk management.

CEO and co-founder Angel Peña stated, “Aplazo aims to be the preferred payment method in Mexico through fair, simple, and transparent financial solutions, avoiding traditional credit products that trap users in debt. This investment helps us advance our mission, and we are excited to welcome QED as a partner.”

Market impact and future plans

Aplazo leads the BNPL market by addressing the offline retail sector, which makes up 93% of Mexico’s retail sales. In-store transactions now account for over half of Aplazo’s business, boosting retention and loyalty. Despite a large portion of users with no credit history, Aplazo maintains high credit approval rates and low credit loss rates, demonstrating the effectiveness of its risk assessment capabilities.

Peña noted, “We see opportunities to engage more deeply with our customers as they transact more with us. Our BNPL services enable 88% of Mexicans without credit cards to make everyday purchases and pay later in installments.”

Looking ahead, Aplazo plans to leverage the new funds to enhance its product offerings and AI capabilities. The goal is to better understand consumer and merchant needs and to refine risk decision processes. This strategic investment in technology and product development is poised to further cement Aplazo’s position as a leader in the BNPL space in Mexico.

Co-founder and CRO Alex Wieland said, “We help partner merchants drive new customers and sales, with partners seeing a 60% higher average order value and 30% higher conversion. Aplazo merchants access marketing tech and AI tools to better run their business.”

QED Investors partner Mike Packer expressed enthusiasm for the partnership, highlighting Aplazo’s progress and sustainable unit economics. Volpe Capital partner Andre Maciel praised Aplazo’s growth and unit economics, noting its leading position among BNPL providers in Mexico.