Founder Luis Sánchez pitches KredFeed, aiming to revolutionize manufacturing financing in Mexico. Investors debate market potential, challenges, and scalability. The podcast also includes reflections on a failed influencer marketing startup and insights into cashflow forecasting in the manufacturing sector.
Credfeed targets manufacturing cash flow issues in Mexico by offering instant receivables conversion, aiding business growth.
Credfeed's focus on manufacturing financing sets it apart with low default rates, despite investor concerns over competition.
Deep dives
Cash Flow Solution for SMBs in Mexico
Luis, founder of Credfeed, aims to solve cash flow issues for small and mid-sized businesses (SMBs) in Mexico. With a focus on manufacturing companies waiting up to six months for payments, Luis offers a platform that turns receivables into instant cash, preventing cash crunches and aiding growth. Positioned to benefit from the global supply decoupling trend, Credfeed targets the $164 billion B2B financing gap in Mexico.
Automated Financing and Low Default Rates
Credfeed boasts automation in financing processes, enabling users to access funds within hours without uploading financial statements. By analyzing data sources, Credfeed maintains a low default rate of 0.5%, compared to the industry norm of 12% in Mexico. The company's focus on financing cost of goods sold for manufacturing companies sets them apart in the market.
Challenges in the Lending Market
Investors' concerns over competition, particularly a major player with significant funding, pose challenges for Credfeed's growth. While investors question market size and competition, Credfeed emphasizes its differentiation in serving manufacturing companies with quick financing solutions. The perception of the lending market and competition impact investor decisions.
Market Potential and Investment Outreach
Despite investor hesitation, Luis highlights the vast market potential, with 770,000 manufacturing companies in Mexico. Credfeed's approach to vertical software tailored for manufacturing and automation of financial processes indicates a broader market strategy beyond factoring. The company successfully closes a funding round, nearing completion through strategic investments.
Lending is one of the oldest markets in recorded history. But founder Luis Sánchez believes there’s an opportunity that remains untapped… manufacturing companies in Mexico. Can Luis mint a Mexican unicorn? Or will the investors decide that this market is just too niche?
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*Disclaimer: The information provided on this show is not intended to be investment advice and should not be relied upon as such. The investors on today’s episode are providing their opinions based on their own assessment of the business presented. Those opinions should not be considered professional investment advice. No offer to invest is being made to or solicited from the listening audience on today’s show.