Argentine digital credit fintech Moni recently announced that it has raised $1.6 million under the modality of a financial trust with the public offering — the seventh of its series.
Banco de Valores S.A. and First Corporate Finance Advisors S.A. acted as arrangers in this transaction. Among the leading investors in this financing were Banco de Valores S.A., First Capital Markets S.A., Banco BST, and BACS (Banco de Crédito y Securitización S.A.).
According to Moni’s statement, the fintech plans to use the capital raised to expand consumer credit to the population of Argentina, which despite having gained greater access to financial products in recent years, still does not reach other neighboring countries such as Brazil in terms of banking penetration.
Financial solutions for the underbanked population
Moni offers several financial solutions in Argentina through a digital wallet, such as personal credit, loans, interoperable QR payments, an International Mastercard, and payment of services.
Founded in 2013 by Juan Pablo Bruzzo and Alejandro Estrada, the startup also operates in Mexico and Colombia.
The company recently acquired authorization from the Argentine National Securities Commission (CNV) to create the Moni Mobile Series VII Financial Trust.
Standing out in a complex economic scenario
“We continue to execute our plan to become a frequent issuer of trusts in the capital market. This year we plan to go to market at least once per quarter,” Federico Chimento, CFO of Moni, said in a statement.
“The results of this placement show the acceptance of the product among investors and the constant support of banks and advisors, who accompany us in the development of our public offering.”
Argentina has been facing a deep economic crisis for some years that has put its fintech industry’s stability against the wall. In this context, Moni’s successful fundraising, which also obtained a high credit rating for short-term debt, stands out above other local fintechs and overcomes the uncertainty of financial risk in the South American country.
The era of easy financing for fintechs is currently on hiatus, meaning that only players with solid and resilient business models stand out from the competition.
In this sense, Moni can be a compelling case to be followed, and its technology might prove to be more disruptive in the industry in the next few years.
