Klar secures $100 Million Debt Facility from Victory Park Capital to Expand Credit Products in Mexico
Aug 15, 2023
The Mexico City-based digital bank provides the unbanked with access to the financial system through alternative forms of lending.
MEXICO CITY — August 15, 2023 — Klar, S.A. de C.V. (Klar), the Mexico City-based digital financial services platform, announced today that it has secured a $100 million credit facility from Victory Park Capital (“VPC”), a global alternative investment firm specializing in private credit. The financial support from VPC will propel Klar during a moment of transformative growth for the company, as it expands product offers that provide Mexicans with enhanced access to reliable, simple and transparent credit cards.
“We are dedicated to democratizing access to credit in Mexico because we believe that a more inclusive and efficient financial system means more for everyone: more opportunities, more customer satisfaction and ultimately, more prosperity,” said Stefan Möller, CEO of Klar. “There is no shortage of quality financial products, but they serve a limited population. We are changing that paradigm. More credit for more people — that is our premise.”
The credit facility with VPC comes at a crucial time for the Mexican financial sector. Klar is experiencing exponential growth and has taken a leadership position in the past year, providing millions of Mexicans with accessible credit lines and financial products. Since its launch in 2019, Klar has quickly gained a loyal customer base thanks to its focus on technology and user experience.
“VPC is committed to supporting Klar in its mission to enhance financial inclusion in Mexico,” said Jason Brown, Partner at VPC. “Klar has built a product that fully meets the needs of a market where credit access remains a challenge and has demonstrated its ability to successfully scale in Mexico. We believe strongly in Klar’s growth potential and look forward to partnering with them as they continue serving the unbanked and underbanked.”
Klar’s solutions for consumers include a credit card that offers cash back on all purchases, the ability to make mobile payments, and access to buy now, pay later services. Klar also offers consumers salary advances and credit lines. Klar’s data analytics capabilities are the cornerstone for customizing its credit lines, accounts, and products to provide tailored solutions to its customers. Klar and its affiliates work closely with Mexican financial regulators to ensure that their financial products are secure and accessible to all customers.
Klar, S.A. de C.V., has been working to democratize financial services in Mexico since 2019 by offering a 100% digital, transparent, free, and secure alternative to traditional credit. For more information, visit www.klar.mx. Klar, S.A. de C.V., is a commercial entity that offers credit products and is not supervised by the CNBV.
About Victory Park Capital
Victory Park Capital Advisors, LLC is an SEC-registered, established credit manager. The Firm was founded in 2007 and is headquartered in Chicago, Illinois, with additional resources in New York, Los Angeles, San Francisco, and London. VPC provides custom financing solutions across the private capital spectrum, focusing on companies with strong corporate governance and a compelling growth trajectory. VPC invests in emerging and established businesses across various industries worldwide. For more information, please visit www.victoryparkcapital.com.
Victory Park Capital
Jordan Niezelski, Edelman Smithfield