ID Finance Investments, S.L.: ID Finance secures a $30 million debt facility from US asset manager SR Alternative Credit to boost its business in Mexico

• The revolving loan facility will support consumer lending growth in Mexico, where ID Finance has over 2M unique registered users.
• The agreement with SR Alternative Credit follows ID Finance successful €30M equity round in Spain, led by UK institutional investor Kingsway Capital.

Mexico City, 19^th of April of 2023 - ID Finance, a leading fintech company in Spain and Mexico, has secured a $30 million senior secured revolving credit facility from SR Alternative Credit, an affiliate of Spouting Rock Asset Management, LLC. The transaction comes shortly after ID Finance Spain closed a €30M equity deal with UK asset manager Kingsway Capital.

The funds will be used to support the growth of its consumer lending business in Mexico, which has seen significant traction in recent years.

The financing transaction is structured via a Master Collection Trust Fund set up in Mexico, with Actinver Bank S.A, Multiple Banking Institution, Financial Group Actinver acting exclusively as an independent trustee of the irrevocable trust administration contract and payment source.

This structure enables ID Finance to efficiently operate cash flows, while ensuring a safe and convenient cash control tool for the investor.  

ID Finance in Mexico currently has 2 million unique registered users and originated €98 million in consumer loans in 2022 and has kept gaining traction during the 1^st quarter of 2023, after issuing an amount of €22M, demonstrating 12% growth compared to the last quarter of 2022.

With the support of the new debt facility, the company is aiming to accelerate its growth further while strengthening its profitability as it scales under the leadership of Country Manager Leslie Sánchez.

“We are excited to take our consumer finance business in Mexico to the next level and position ourselves as ultimate market leaders in that segment. We have the talent and the expertise to keep maximising ID Finance potential in Mexico”, said Leslie Sánchez, Country Manager of ID Finance Mexico.

Boris Batin, CEO and co-founder of ID Finance, highlighted: "This debt facility is a testament to the strength of our business model and the potential for further growth in the Mexican consumer lending market. We are excited to partner with SR Alternative Credit and believe that their support will help us continue to drive innovation in our sector."

Peter Faigl, Chief Investment Officer of SR Alternative Credit, pointed out: “We are delighted to partner with ID Finance Mexico and support their growth strategy in this promising market. Given its strong track record, we believe the business is in an excellent position to keep attracting new underserved customers thus further promoting financial inclusion in Latin America.”

About ID Finance

www.idfinance.com  

ID Finance is a leading finance technology company based in Spain with operations in this country and Mexico. Its main offering is focused on providing retail banking and finance solutions. It is among the few financial technology firms in Spain and Mexico committed to measuring and compensating its carbon footprint. The company is consistently profitable and since its inception in 2015 it has processed over 10 million credit applications. In 2021, ID Finance launched Plazo, a leading wellness app, in the Spanish market. After the success in that country the company is planning to roll it out in Mexico in the second half of the year.

About SR Alternative Credit

www.sraltcredit.us

SR Alternative Credit is an alternative asset manager focused on asset-based lending transactions with small- and medium-sized businesses.  Operating at the crossroads of investors seeking attractive risk-adjusted yields and emerging companies, SR Alternative Credit provides capital for expansion, acquisitions or growth. For more information, visit www.sraltcredit.us. 

For further information, please contact:
 

Katia Ballano Göring
PR & Comms manager ID Finance Plazo
katia.ballano@idfinance.com
Tel: +34 649 799 327

Or / and

Leslie Sánchez
Country Manager Mexico
leslie.sanchez@idfinance.com
Tel: +52 55 50059720