Why We Invested: Digitt
Redefining Consumer Credit in Mexico
Mexico’s consumer credit market is massive, with more than 30 MM credit cards in circulation and total consumer credit balances exceeding US$87 BN[1]. Yet despite its size, the market is defined by a paradox: it is highly profitable for banks, yet deeply inefficient for the creditworthy customers that drive that profitability. Prime and near-prime consumers, borrowers with stable incomes and strong repayment capacity, are trapped in a revolving credit card debt flywheel. Minimum payments keep them in debt for years without meaningfully reducing their balances, while compounding interest rates often ranging from 50% to 150% APR[2] make it virtually impossible to escape. This dynamic is reinforced by a highly concentrated banking market, where six incumbents control over 80% of credit card lending and have little incentive to offer fair alternatives. At the same time, newer fintechs and neobanks have focused on subprime borrowers, often charging exorbitant APRs, leaving creditworthy consumers underserved and with no viable alternatives.
Digitt is tackling this inefficiency head-on. The Company offers an amortizable refinancing option that pays off high-interest credit card balances and replaces them with fixed-term loans aligned to the borrower’s cash flow capacity. Digitt provides customers with transparent, fairly priced credit and a clear path out of revolving debt. Built with an AI-native underwriting engine and backed by institutional funding, Digitt combines discipline in credit with scalable technology.
Digitt is led by David García (Co-Founder & CEO), a third-time entrepreneur who founded the company after personally experiencing the challenges of Mexico’s consumer credit system. His co-founder, Manuel Álvarez (COO), adds operational and investment expertise from YNG Ventures along with a background in manufacturing and product development. Together with a seasoned team, they bring the vision, discipline, and credibility to transform consumer credit in Mexico.
At IGNIA, we back companies solving meaningful problems in Latin America. Many responsible borrowers in Mexico, despite having stable incomes and strong repayment histories, are still trapped in expensive revolving credit. This problem will only grow as more consumers enter the financial system and face the same debt flywheel. Digitt is changing this by providing prime and near-prime consumers with transparent, affordable alternatives that give them a clear path out of debt.
We are proud to participate in Digitt’s US$10 MM Series A round. Congratulations to David, Manuel, and the entire Digitt team. We are excited to support you in building fair, transparent, and scalable credit solutions for Mexico’s emerging middle class.
[1] According to Banco de Mexico
[2] According to the banks’ websites (HSBC, BBVA, Banamex, Santander, and Banorte).