Mexican BNPL app Nelo has gotten a $100 million credit facility from Victory Park Capital, which will help it grow its business and cushion its loan book, according to a press release.
Nelo CEO Kyle Miller has said the funding will help the company free up capital to invest in more employees and marketing. The company plans to grow, but currently just within Mexico.
Nelo will now see a leg up in a market that has only been growing with more BNPL companies sprouting up in Mexico, which has low credit penetration – just 12% right now, according to Miller. Other companies like Kueski, Aplazo and Atrato have also been doing well lately.
Miller said there was “quite a bit of opportunity” in Mexico.
Transactions made with BNPL firms have seen a mass upswing in the pandemic, with its shift to more digital-based ways of life. But analysts have said an easing in consumer spending and rising interest rates could end up having negative effects for the BNPL model, and lead to consolidations.
Earlier this year, Nelo debuted a new all-in-one app with Mastercard, letting users generate a one-time card for purchases through the app.
Read more: BNPL Service Nelo Launches All-In-One App
PYMNTS wrote that Nelo’s all-in-one app with Mastercard would let customers use it at any merchant.
“Nelo’s app is the first of its kind in the region, where customers can shop and pay in installments at their favorite stores like Mercado Libre, Amazon, and Liverpool,” the company said.
At the time, Miller was quoted as saying the company had seen myriad requests from customers to have more stores at which it could use Nelo. The rollout built on the company’s existing app, which provided financing for top stores like Telcel and Steve Madden.
The company said the service was live as of April 20 for all customers.
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