TLDR:
- Miami-based fintech company Marco has secured US$12mn in series A funding to target SMEs in Latin America.
- The funding round was led by IDC Ventures and oversubscribed by US$2mn.
Miami-based fintech company Marco recently closed a series A funding round with a total of US$12mn. This funding is intended to address the trade finance gap for small and medium-sized enterprises (SMEs) in Latin America. The funding was led by IDC Ventures, the venture capital arm of Guatemala-based multifund platform IDC Network, and saw an oversubscription of US$2mn. Other investors in the funding round included Arcadia Funds, Barn Invest, Florida Funders, IDB Lab, Kayyak Ventures, Miami Angels, Neer Ventures, and SquareOne Capital.
Founded in 2020, Marco offers a range of financial products such as supply chain finance, factoring, and asset-based lending. The company also provides assistance to Latin American clients in setting up limited liability companies. The goal of Marco is to develop an operating system for SME exporters in Latin America, with a focus on closing the US$350mn trade finance gap in the region. The company also aims to capitalize on Mexico’s shift towards exporting to the US instead of China.
As part of the new funds, Marco plans to launch a “US global accounts product” which will allow customers to obtain a US bank account through the platform. This will provide more efficient control over currencies, foreign exchange rates, wire fees, and other financial matters. The company’s co-founder and CEO, Jacob Shoihet, expressed a commitment to creating products that solve commercial friction and create economic opportunities for SMEs.
One of the reasons behind Marco’s focus on Latin America, according to co-founder and COO Peter Spradling, is the nearshoring trendline in the region. Additionally, Latin America presents some of the widest commercial credit spreads globally. The infrastructure surrounding e-invoicing and the tax database in the region also provides structured data for underwriting purposes, even though open banking and open finance are not yet widely implemented.
With offices in Miami, New York, and Montevideo, Marco aims to support SME exporters across various industries, as long as they meet ESG frameworks. The company’s growth and focus on Latin America reflect a commitment to addressing the unique trade finance challenges faced by businesses in the region.
