Convenience stores

Tienda Pago raises $12 million to help small convenience stores grow their business

By Edlyn Cardoza

Today

  • Consumer goods
  • credit management
  • Financial inclusion

Tienda Pago, the short-term credit lenderbased in Peru and Mexico, announced the closing of a Series B investment led by Women’s World Banking Asset Management and IDC Ventures for $12 million.

“We are very pleased to partner with Tienda Pago on this important journey and to provide access to financing for small business owners who are the cornerstone of economic development in the region,” said Yrenilsa Lopez, Senior Investment Manager at Women’s World Banking Asset Management.

Tienda Pago’s innovative partnerships, technology and process have attracted impact investors and traditional VCs. Women’s World Banking Asset Management and IDC Ventures led this Series B investment round to which Alumni Fund contributed as a new investor. Current investors Kaszek, QED, Agrega Partners, Accion Venture Lab and Oiko Credit also participated in this round.

“Small businesses are fundamental drivers of economic development in Latin America, but they still lack access to finance,” says alexander rodriguezPartner at IDC Ventures. “SMEs receive only 12% of total formal credit in the region, despite representing the vast majority of businesses and the majority of jobs. Tienda Pago works with product distributors to provide seamless cashless transactions that benefit both store owners and suppliers, delivering value at both ends of the supply chain.

Tienda Pago provides micro, small and medium enterprises with working capital through short-term equity financing on its digital platform. According to Peruvian Minister of Production, 99.5% of the country’s businesses are SMEs. In Mexico, SMEs account for 70% of formal employment. Tienda Pago contributes to financial inclusion in the region by providing credit to unserved and underserved SMEs, especially those owned by women.

“Tienda Pago’s business model helps entrepreneurs grow in the region and impact our community,” said Dan CohenCEO and Founder of Tienda Pago. “75% of SMEs cannot buy all the stock they need to serve their customers, which means lost opportunities, and only half of stores have sufficient access to financial services. This is why Tienda Pago is essential to meet the financial needs of convenience stores in developing regions.

Tienda Pago has partnered with Consumer Product Goods to finance their inventory for convenience stores to help them reduce trust risks while increasing sales and improving customer experience through frictionless operations (registration, collection and fault management).

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