Konfio is an online lending platform that uses innovative credit algorithms and alternative data analysis to help micro, small, and medium-sized enterprises (MSMEs) in Mexico obtain affordable working capital loans. Konfio was founded in 2013 by Mexican entrepreneur and MIT graduate David Arana. Before founding Konfio, Arana worked at Deutsche Bank in New York, where he realized the real impact he could have by providing financing to far smaller companies.
There are over 5 million MSMEs in Mexico, most of which are not served by commercial banks because they are small, informal, or not seen as profitable. Many firms and entrepreneurs lack credit history, making it difficult for banks to lend to them. Informal lenders exist, but often charge punishing interest rates of 100% or more.
Konfio provides business loans of up to 150,000 pesos (~US $8,000). The company’s entirely digital platform allows for low-cost customer acquisition and rapid credit assessment, which means the company can offer lower rates than traditional lenders.