Marco, a provider of a technology-enabled trade financing platform based in the US, has recently secured $8.2 million in equity funding, with Arcadia Funds leading the investment. Additionally, Castlelake and MidCap Financial provided a $200 million credit facility to support the company's SME financing platform in Latin America.
In Latin America, less than 10% of SMEs have access to financing, resulting in a $2 trillion funding gap for such businesses. By providing tech-enabled financing, Marco distinguishes itself by offering small and medium-sized exporters in the region financing decisions through its risk solutions platform within days, enabling them to take timely interventions and scale their businesses.
Marco's goal is to enable Latin American SMEs to sell their products globally by providing the necessary support. Since its launch in 2020, the company has financed $275 million across 25,000 invoices with no losses, achieving a compound annual growth rate of over 1,500% between 2021 and 2022. In 2022, the company provided $100 million in financing to businesses in Latin America, and it aims to fund $750 million by the end of 2023 in the US, Mexico, Ecuador, Colombia, and Peru.
Marco intends to use the raised funds to grow its client base and portfolio, enhance its trade finance platform, and augment its suite of trade services.
The lack of access to financing is a significant obstacle for SMEs in Latin America, as it inhibits their growth and ability to participate in the global market. With Marco's innovative financing solutions, SMEs can access capital more quickly and efficiently, enabling them to seize growth opportunities that were previously unavailable to them.
Marco's success in Latin America is evident, as it has provided financing to thousands of SMEs with no losses recorded. Its impressive compound annual growth rate demonstrates the value it brings to SMEs and the potential for its continued expansion in the region.
As Marco continues to expand its financing platform and services, it aims to empower more SMEs to scale their businesses and participate in the global economy. With the support of its investors, Marco is well-positioned to continue driving innovation and growth in the Latin American SME financing landscape.
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