MEXICO
CITY, July 24, 2024 /PRNewswire/ -- Digitt, a
pioneering fintech offering credit card debt refinancing for prime
borrowers in Mexico, today
announced the launch of a $50M debt
facility with CoVenture Management, LLC, a leading private credit
and alternative asset manager based in New York, New York.
The Facility will help expand Digitt's existing debt refinancing
product, expand its product offering and deepen the company's
relationship with its growing customer base.
Digitt was founded by Manuel
Alvarez and David García after David experienced credit card
debt difficulties firsthand. In Mexico and most of Latin America, predatory credit card lending
is a substantial issue even for creditworthy customers. Even those
with thick credit files, verifiable income, stable jobs and proven
willingness and ability to pay are subject to interest rates
between 60-150%. While most consumer fintech companies in the
region target the unbanked population, these low-risk customers
today generate over US$20 billion per
year in interest revenue to the top five banks in Mexico alone.
Digitt previously raised US$4.8M
in equity financing from VC investors such as Clocktower Technology
Ventures, FJ Labs, Gilgamesh Ventures, Yes VC, Angel Ventures
Mexico and New Stack Ventures, together with renowned angel
investors, such as former SoFi President, Saturnino Fanlo.
"Partnering with CoVenture marks a key milestone in our
journey", said David García, CEO of Digitt. "We have built a strong
foundation at Digitt that resulted in receiving 9 different offers
from top players in the space, but given CoVenture's reputation,
experience, flexibility and ability to scale, we're thrilled about
working with them".
Digitt also marks CoVenture's first direct investment in
Latin America.
"We are excited to be entering the Latin American market with
Digitt and supporting David and his team's continued growth on a
product that already has an established track record and is
actively solving an issue in Mexico's consumer finance ecosystem." added
Lei Tie, Managing Director, CoVenture.
Digitt expects to triple its portfolio over the next 12 months,
enabling more than 15,000 people in Mexico to pay off predatory debt and finally
have access to affordable, flexible and predictable credit
products.
About Digitt
Digitt is a fintech company based in Mexico, dedicated to helping prime borrowers
refinance their debt through affordable, flexible, and predictable
loans. By leveraging cutting-edge technology and a deep
understanding of the local market, Digitt addresses the financial
challenges faced by creditworthy individuals who are subjected to
exorbitant interest rates by traditional banks. With a proven track
record, Digitt is poised to revolutionize consumer finance in
Latin America. For more
information, visit https://www.digitt.com/.
About CoVenture Management LLC
CoVenture Management, LLC ("CoVenture") is a privately held
alternative asset management firm focused on private and structured
credit opportunities and credit-oriented investments in early and
later-stage companies. The firm has two primary areas of focus:
Credit Opportunities, through which CoVenture provides asset-backed
debt to specialty finance and technology-enabled businesses; and
Hybrid Capital Solutions, a flexible mandate investing in
later-stage businesses seeking growth capital or non-traditional
liquidity solutions. For more information
visit https://coventure.vc/.
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SOURCE Digitt