In Mexico, securing financing for car purchases has long been a big challenge. Traditional banks have maintained low approval rates, and the application process is often outdated, causing significant delays in obtaining a financing decision.
Nexu, a Mexican fintech company, recognized this issue and set out to revolutionize the auto financing landscape in the country. Its mission is to make car financing more accessible and efficient, particularly at the point of sale. By collaborating directly with automotive dealerships, Nexu aims to improve conversion rates and extend financing options to a broader spectrum of car buyers.
Unlike the United States, where financing accounts for a substantial portion of car sales, Mexico has faced limitations in this regard, with less than 60% of new vehicles and only 2% of used vehicles being financed. The solution Nexu has introduced leverages its proprietary risk algorithm to provide faster and more inclusive financing decisions, aiming to change the status quo for car buyers in Mexico.
Now with a Series B investment round of $20 million, Nexu plans to expand its presence in the Mexican market and diversify its financing services. In previous financing rounds, the fintech had raised a total of $53 million, marking a significant journey toward achieving its mission.
Leading this investment is Valor Capital, with participation from notable investors like FinTech Collective, Endeavor Catalyst, Altos Ventures, Wollef, Squareone, Clocktower Ventures, Gilgamesh Ventures, FJ Labs, Ivernet, and Capem.
Nexu also secured an undisclosed line of credit from HSBC.