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/.
SOURCE Digitt
