For the time being, Nelo plans to maintain a focus on expansion within Mexico. Here are the top-line bullets you need to know.
Nelo, a buy now, pay later (BNPL) service provider, has raised $20M in a Series A. The round drew participation from Two Sigma Ventures, Crossbeam Ventures Partners, and Susa Ventures, among others.
How’s the company performing?
- Mexico City-based Nelo offers buy now, pay later (BNPL) services and an embedded checkout experience for merchants.
- Customers can make purchases from more than 100 merchants, including Netflix, Amazon, Telcel, and Spotify, and they can also pay off utility and mobile phone bills using Nelo’s app.
- Nelo’s first product is similar to a debit card offering from a neobank. It also offers credit installment loans.
- The company is seeing 50% revenue growth and 100,000 transactions each month.
- The platform integrates with platforms such as Shopify, Magneto, PrestaShop, and VTEX.
- Nelo currently has 23 employees.
Why does the market matter?
- The global digital lending platform market is projected to grow at a CAGR of 18.13% to reach a value of $27.07B by 2028, according to Verified Market Research.
- Today, BNPL accounts for a small portion of the overall annual spending on payment cards (including credit, debit, and prepaid cards) — which currently sits at $8T. However, BNPL is at an inflection point. By 2025, the global BNPL industry is expected to grow 10-15x its current volume, topping $1T in annual gross merchandise volume by some estimates. This growth trajectory has incumbents paying close attention and increasing their efforts to improve the digital user experience.
- There have been major acquisitions in this space as well, such as Square acquiring AfterPay for $29B.