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May 14, 2024

Why QED invested in Aplazo

Despite being a large and growing economy, Mexico continues to lag in financial inclusion, particularly in access to credit. Only 11 percent of consumers have a credit card, primarily due to lack of coverage by the credit bureaus, informal employment and physical distance from branches that prohibits consumers from even applying for credit. Consumer financing is an important tool, and the lack of access to capital impairs economic mobility.

Aplazo is the leading buy-now pay-later solution in Mexico, providing financing for consumers in retail purchases – both offline and online. By allowing consumers to purchase products and spread the cost over several installments, Aplazo provides flexible and more favorable payment options and expands their purchasing power. For retailers, Aplazo helps increase average order value and conversion, acting as a true commerce partner.

At QED, we had been looking for the “right” consumer play in Mexico for quite some time. Recognizing the depth of the financing problem in the country, we knew there was an opportunity to tackle that problem in a massive way and start to improve the penetration of consumer credit. With Aplazo, we found an exciting combination of team and strategy that we truly believed in, and an incredible market opportunity ahead of them.

What makes Aplazo different? Beyond the financing product, which is thoughtfully designed and managed in a superior way to others we’ve seen, Aplazo has started to truly create a consumer brand that we believe will allow them to win in the long run. Consumers are not only using Aplazo as a financing tool, but initiating purchases through their app, demonstrating a strong value proposition.  Additionally, Aplazo provides the ability to “BNPL” anywhere through a virtual card, expanding a consumer’s ability to shop, and is showing impressive recurrence and engagement among users.  Aplazo also reports to the credit bureaus, thus helping consumers build credit throughout the financial system.We believe that the company is only getting started and will increasingly be able to finance a larger share of the consumer wallet.

On the merchant side, Aplazo is becoming one of the main forms of payment in stores, given their effectiveness in driving sales and retention. Through increased penetration and additional sales tools, we anticipate Aplazo will become an even more important partner for merchants, and are excited about the untapped opportunities for growth.

Having known Angel and Alex for a few years now, we’ve been impressed not only by what they have achieved so far but also by their vision, as well as their ability to recruit world-class talent to the company. We are incredibly excited about the future of Aplazo, and we look forward to working alongside them as we tackle this massive gap in the market.