This post is by Mary Ann Azevedo from Fundings & Exits – TechCrunch
The B2B payments space has been on fire for a while, and the COVID-19 pandemic has only fueled mass adoption of digitizing finances.
In regions like Latin America, the need for innovation in the sector is even more paramount than in the United States with so many people still relying on outdated processes.
One Mexico City-based startup, Higo.io, is out to transform B2B payments for SMBs (small and medium-sized businesses) in Latin America, starting with its home country.
Rodolfo Corcuera, Juan José Fernández and Daniel Tamayo founded the company in January 2020, recognizing that the process of paying vendors for business owners is largely “manual and cumbersome.”
“In Mexico, small businesses mostly handle payables with nothing more than spreadsheets and email and legacy bank accounts,” CEO Corcuera said.
The trio formed Higo to automate processes and provide visibility into cash flow, particularly for small businesses. “Informal” businesses make up about 23% of Mexico’s GDP, according to data from INEGI, the government’s National Institute of Statistics and Geography. Higo launched its SaaS platform last November.
And now the startup has raised $3.3 million from a group of U.S.-based investors including Homebrew (which led the round), Susa Ventures, Haystack and J Ventures. The financing is the latest in a string of fintech-related fundings in Mexico that TechCrunch has covered as of late.
Higo wants shake up the payments scene in the region by creating an alternative to traditional banking for businesses to pay each other.
“We want to build the (Read more...)