With MXN 400 million in financing provided by BBVA Spark and SixPoint Capital SixPoint Capital, Mexican fintech Baubap is strengthening its mission to expand access to fast and affordable credit for millions of Mexicans.
BBVA México, through BBVA Spark, its banking unit dedicated to high-growth technology companies, has arranged a 48-month MXN 400 million credit facility for Baubap, a digital micro-lending platform operating through its mobile app. The transaction comprises a MXN 290 million senior tranche provided by BBVA Spark and a mezzanine tranche provided by SixPoint Capital. This marks the first time Baubap has operated with its entire financing structure denominated in Mexican pesos, giving the company access to institutional bank financing while strengthening its capacity for sustainable growth.
Founded in 2018, Baubap has provided loans to more than two million people across Mexico and expects this new financing to enable it to extend credit to more than 5.5 million users. The fintech relies on proprietary credit risk assessment models and focuses on serving individuals seeking alternative financing solutions.
The new credit facility will allow the company to strengthen its operating capacity, expand its market reach, and continue developing accessible financial solutions for a greater number of people throughout the country.
Rodrigo Velasco, Head of BBVA Spark Mexico and Latin America, said: "At BBVA Spark, we support companies like Baubap that leverage innovation and alternative data intelligence to expand access to capital and close financial inclusion gaps. Through this financing, we reaffirm our commitment to financial inclusion, enabling thousands of Mexicans to access immediate liquidity and strengthen their personal and family finances."
A.J. Davidson, CIO, CEO and Co-founder of SixPoint Capital, commented: "We are excited to have helped Baubap reach a stage where it can access more competitive institutional bank financing, while continuing to complement its capital structure with flexible financing solutions that reduce the overall cost of capital and minimize the need for dilutive equity financing to support its growth."
Roberto Salcedo, CEO of Baubap, added: "Securing the backing of BBVA Spark is a major milestone for Baubap and further validates our business model of providing financial inclusion to Mexico's underbanked population. We are grateful to BBVA Spark, as well as to our long-term partners at SixPoint Capital, who continue to support us with flexible capital solutions."
The structure of the transaction represents an innovative financing model within Mexico's fintech ecosystem by bringing together two complementary partners: BBVA Spark, the venture and growth banking arm of a global financial institution, and SixPoint Capital, a private credit fund specializing in emerging markets. The collaboration establishes a benchmark for the industry by demonstrating how institutional banks and private credit funds can work together to support high-growth fintech companies.
The partnership between BBVA and Baubap not only validates the fintech's business model but also highlights the banking sector's ability to structure sophisticated financing solutions tailored to the needs of fast-growing companies. With this financing, Baubap further strengthens its position as one of the fastest-growing fintech companies in the region while reaffirming its mission of expanding access to fast, fair, and affordable credit for millions of Mexicans.
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