Aplazo
Overview
Aplazo is a Mexican fintech company that specializes in the Buy Now, Pay Later (BNPL) sector. Founded in 2020 by Angel Peñα and Alex Wieland, Aplazo is headquartered in Mexico City, Mexico. The company's platform allows consumers to purchase goods in installments without the need for a credit card, thereby catering to the country's large underbanked population. As of May 2024, Aplazo has raised over $100 million in equity financing and $75 million in committed debt funding, with its latest Series B round raising $45 million.
Recent Developments
- May 2024: Aplazo completed a $70 million equity financing round, including a $45 million Series B, led by QED Investors with the participation of new investor Volpe Capital and existing backers Oak HC/FT, Kaszek, and Picus Capital. The funds are intended to enhance product offerings and leverage artificial intelligence to better understand consumer and merchant needs.
- Growth and Performance: The company has reported a tripling of its revenue, largely through expanding its market share among online and offline merchants. In-store transactions represent more than half of its business. Aplazo is operating near breakeven and maintains low credit loss rates despite 40% of its users lacking a credit history.
- Market Positioning: Aplazo prides itself on being a catalyst for financial inclusion, allowing 88% of Mexicans without credit cards to make installment purchases. The company has positioned itself as a key player in the offline retail market, which accounts for 93% of Mexico’s retail sales.
- Strategic Goals: With a focus on fair, transparent financial solutions, Aplazo aims to become the preferred payment method in Mexico, distinguishing itself with a robust network of merchants and the ability to provide installment options with a single-use virtual card.
- Innovative Tools: Aplazo is leveraging AI and a marketing tech stack to optimize merchant operations and enhance user experience. The company employs alternative data sources to assess creditworthiness and reduce risk, boasting credit approval rates over 80%.
- Expansion Plans: The recent funding supports Aplazo's intention to broaden its scope in Latin America, exploring deeper engagements with customers and expanding merchant relationships.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2020 |
| Headquarters | Mexico City, Mexico |
| Founders | Angel Peñα, Alex Wieland |
| Revenue | Not publicly disclosed |
| Profits | Operating near breakeven |
| Key Investors | QED Investors, Oak HC/FT, Kaszek, Volpe Capital, Picus Capital |
| Industry | Financial Software (Fintech) |
| Number of Employees | 190 |
| Subsidiaries | N/A |
Early History
Aplazo was founded to address the credit accessibility challenges faced by many in Mexico. The underbanked population, which often lacks traditional financing options such as credit cards, found a solution in Aplazo's BNPL platform. By allowing installment payments at partner merchants, Aplazo quickly gained traction. With early-stage funding rounds in 2021 and significant backing from investors like Oak HC/FT, Aplazo rapidly expanded its network, establishing itself as a key player in Mexico's financial services.
Company Profile and Achievements
Aplazo's business model centers around offering flexible financing solutions to consumers and enabling merchants to increase sales via installment plans. The company has built a comprehensive fintech platform that supports online and offline transactions.
- Product Innovation: Continually improving its platform, Aplazo incorporates AI for better credit assessment and consumer insights.
- Merchant Network: By the end of 2023, Aplazo had partnered with nearly 10,000 merchants, integrating its BNPL solutions to help increase average order values and customer conversions.
- Consumer Reach: With over 70% of its users lacking other credit products, Aplazo has become a primary financial service for many, positioning itself uniquely in the market.
- Sustainable Operations: Despite rapid growth, Aplazo maintains low credit loss rates and high approval rates, achieving near breakeven operations.
- Social Impact: Dedicated to enhancing financial inclusion, Aplazo leverages alternative data for credit assessments, helping users build credit histories.
Current Operations and Market Position
Operating primarily in Mexico, Aplazo has cemented its status as a leading BNPL provider. The company focuses on addressing offline retail markets and has adapted its services to meet the needs of merchants and consumers without access to traditional credit. Aplazo's competitive edge lies in its large merchant network and its innovative use of AI to streamline operations and reduce financial risks. Its strategic initiatives emphasize capturing a greater market share and solidifying its presence as a leading payment method in Mexico.
Conclusion
Aplazo plays a critical role in Mexico’s fintech scene, providing solutions that enhance financial access for underserved populations. With its robust merchant partnerships and innovative use of technology, Aplazo is well-positioned to continue its growth trajectory. As it looks to future expansions, particularly across Latin America, Aplazo is set to capitalize on increasing demand for BNPL services, driven by its commitment to transparency and consumer empowerment.