Finkargo, the international trade platform, has successfully raised $20 million in Series A funding, with QED Investors at the helm. This fresh capital injection is aimed at expanding Finkargo's reach and services, particularly focusing on the rising trend of nearshoring, which connects Mexican and Colombian small and medium-sized businesses (SMBs) to the global market.
In a bid to capitalize on the growing movement of nearshoring - where companies shift their operations closer to home to reduce costs and improve supply chain efficiency - Finkargo's latest financing round saw the participation of new investor Nazca and continued support from existing stakeholders Quona, Flybridge, Maya, and ONEVC.
Finkargo, since its inception, has been actively engaged in deciphering the complex nature of international trade. Responding to a keen demand for innovation among importers, the platform has introduced a range of pioneering products that consolidate the entire trade ecosystem - including importers, freight forwarders, suppliers, and tech innovators - into a single, efficient workflow.
Santiago Molina, CEO and co-founder of Finkargo, stated, "With international trade's vastness and complexity, there is an immense potential for technological innovation. We first addressed the critical aspect of trade financing and now are expanding to fill the gaps in our clients' operations with integrated systems."
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Finkargo's expansion plans in Mexico will not only focus on trade financing but will also include a suite of trade services such as supplier sourcing, product verifications, cargo insurance, foreign exchange, and trade data intelligence.
Camila Key Saruhashi, Principal at QED Investors, pointed out the vast opportunity in trade finance, highlighting that SMBs in Colombia and Mexico face a significant capital access problem despite importing over $30 billion worth of goods annually from Asia. "Finkargo's technology-driven approach is filling this void by offering crucial import financing products for SMBs," she said.
In just two years, Finkargo has made significant strides in the sector, empowering over 250 customers to engage in international trade and extending financial support to more than 2,000 import operations worth $200 million. Finkargo's reach now includes connections with 430 suppliers across 40 countries, making it a global player in the trade industry.
Jeff Bussgang, General Partner at Flybridge, lauded Finkargo's approach: "They're revolutionizing the SaaS model by integrating vital fintech offerings - like credit facilities for import/export SMBs - with valuable workflow and supply chain management tools."