The fintech sector in Latin America (LatAm) has undergone a dramatic transformation, now representing 40% of all investments in the region. The initial wave, led by companies like Nubank, Neon, and Ualá, revolutionized consumer-facing financial solutions, addressing a growing demand for personalized, digital services. This shift laid the foundation for the next frontier: the largely untapped B2B domain.
In a region where the financing gap reaches US$1.2 trillion, and over 175,000 companies engage in B2B transactions, the challenges are significant. Particularly in Mexico, with its 45,000+ companies, traditional banking structures often leave more than 80% of SME credit applications rejected, underscoring a dire need for innovative financing solutions.
Enter Kontempo. Its API platform reimagines the cumbersome net terms process, offering a streamlined, digital approach for suppliers to extend credit. This solution not only ensures immediate payment but also reduces the risks and operational costs typically associated with credit operations. For SMEs, Kontempo is more than a financial tool—it's a gateway to growth and operational efficiency, providing quick, flexible, and accessible credit.
With a strategic initial focus on Mexico's industrial sector, Kontempo's vision extends to becoming the comprehensive B2B commerce platform across LatAm. Its evolving ecosystem of products and tools is empowering SMEs and invigorating commerce throughout the region.
Our conviction in Kontempo is rooted both in its innovative business model and in the strength and experience of its founding team. Matthew Meehan, a three-time founder with a notable exit in Centeo, brings invaluable insights from the embedded financing space. Antonia Marino, leveraging her experience at Centeo, expertly developed BNPL and MCA programs for multinational partners in Mexico, after a pivotal role at Uber, where she spearheaded the company’s vehicle financing program. Kwesi Steele, with his seven-year tenure at Google, led technical sales teams across diverse regions including Asia, LatAm, and Canada. Collectively, they present a synergistic blend of skills in SME credit, embedded lending, operations, and technology, positioning Kontempo at the forefront of financial innovation.
As the inaugural investment from IGNIA VC Fund II, we are excited to partner with Kontempo and world-class co-investors, including Portage, SCOR P&C Ventures, Upper90, and Asymmetric.
We believe that Kontempo is not just a business; it's a catalyst for economic growth and a driver for the digital future of commerce in Latin America. This investment reflects our belief in the transformative power of fintech and our commitment to fostering sustainable and inclusive growth in the region. Kontempo exemplifies our thesis of investing in global entrepreneurs who are developing innovative technology solutions to address fundamental pain points in Latin America.
As B2B commerce progressively shifts online, Kontempo is poised to be at the forefront, providing essential financial infrastructure to support this digital transformation.