Colombian fintech Finmaq has successfully closed a pre-Series A funding round, raising $29 million through a combination of equity and debt financing.
This milestone positions the startup to further its mission of driving financial inclusion for micro, small, and medium-sized enterprises (MSMEs) by enabling access to financing for productive machinery. The round was led by Alive Ventures, with participation from 30N Ventures and existing investors. On the debt side, Accial Capital and local entities such as Iris Bank played a significant role.
Empowering Underserved MSMEs Through Innovation
Founded in 2014 and restructured in 2019, Finmaq has reimagined how MSMEs access credit by focusing on productive assets rather than traditional income metrics or collateral. According to co-founder and CEO Diego Sanz de Santamaría, the company's approach addresses a structural credit gap that has long constrained the growth of these businesses.
“MSMEs face significant barriers to financing, which limits their potential. Finmaq’s model offers tailored financial solutions even to those excluded from traditional systems,” said Sanz de Santamaría in an interview with Forbes.
Finmaq's solution leverages technology to simplify and accelerate the loan approval process. By using its proprietary credit risk analysis model, the company provides pre-approvals in just five minutes and finalizes loans in under eight days—a stark contrast to the weeks-long wait times of conventional lenders. This streamlined approach has helped Finmaq expand its reach into sectors such as agriculture, healthcare, and construction across Colombia.
A Track Record of Impact
Since 2022, Finmaq has disbursed over US$30 million in loans, boasting an active portfolio of US$17 million and serving more than 550 clients, 40% of whom are women. Notably, 93% of Finmaq’s clients are micro and small enterprises, and 30% had no prior credit history. Moreover, 55% of the funded businesses derive their primary income from the assets financed by Finmaq, with each financed machine generating at least two new jobs.
Examples of beneficiaries include independent dentists acquiring new equipment, small-scale farmers investing in tractors, and truck drivers purchasing their own vehicles. By focusing on productive assets, Finmaq not only supports business growth but also fosters economic development in underserved regions. In fact, 40% of Finmaq’s clients operate in rural areas.
Finmaq’s 2023 and 2025 Funding Announcements Might be Linked
It is worth noting that this announcement may reflect an updated figure from Finmaq's earlier 2023 funding round, rather than a completely new round of financing. In 2023, Finmaq reported raising US$3.5 million in equity and US$20 million in debt, totaling US$23.5 million. The US$29 million figure in this announcement could include additional commitments, rounding adjustments, or unreported contributions finalized after the initial announcement.
While this cannot be confirmed, this assumption is supported by the structural similarities between the two rounds, including:
- A mix of equity and debt financing.
- The participation of key investors such as Alive Ventures and Accial Capital.
- Shared objectives, such as doubling the loan portfolio, regional expansion into Chile, Peru, and Mexico, and reducing credit disbursement times.
This is a common occurrence in startup financing, where funding rounds evolve and are updated as additional details are finalized.
Scaling for the Future
The new funding will allow Finmaq to double its loan portfolio by 2025, strengthen its distributor network, and enhance operational efficiency to further reduce credit disbursement times to just two days. Additionally, the company is poised to scale its impact by expanding into new markets, including Chile, Peru, and Mexico, as highlighted in previous announcements.
“Our goal is to become the go-to financing partner for MSMEs in Latin America,” said Sanz de Santamaría. “This funding is a significant step forward in achieving that vision.”
Investor Confidence in Finmaq’s Vision
Finmaq’s growth and impact have earned the trust of key investors. Santiago Álvarez, managing partner of Alive Ventures, will join Finmaq's board of directors, expressing enthusiasm for the company’s mission:
“Finmaq is addressing a vital segment of the economy that has been historically underserved. This investment marks the beginning of a transformative journey.”
Similarly, Salvador Said, managing partner of 30N Ventures, emphasized the broader implications of Finmaq's innovation:
“Their approach to productive asset financing is not just a game-changer in Colombia but has the potential to drive economic growth across the region.”
A Catalyst for Social and Economic Inclusion
Finmaq exemplifies how fintech can drive social impact through financial inclusion. By enabling MSMEs to formalize their operations and invest in productivity-enhancing assets, the company is helping businesses unlock their potential and contribute to the broader economy. With a user-friendly app and digital-first approach, Finmaq is not just financing assets but also building trust among traditionally excluded populations.
As Finmaq prepares to enter new markets and scale its operations, the US$29 million funding serves as a launchpad for continued innovation and impact. The startup's focus on underserved businesses ensures it remains at the forefront of financial inclusion efforts in Latin America.
