Originally published on: techla.pro
From a café in Bogotá, Colombia, Ignacio Arambarri connected for a few minutes to talk about his project that seeks to empower the growth of agroexport. This is Finanex, an international factoring company that provides flexible financial solutions, using technology, to small and medium agroexport companies in Latin America. Its main objective is to empower these food exporters and help them expand their reach in the global market. Through its platform and digital tools, Finanex has managed to boost the growth of numerous farmers and exporters in the region.
How did the initiative come about?
The story of Finanex began when Ignacio Arambarri, co-founder and CEO of the company, together with Victor Palazzo, decided to tackle the challenge of the acceleration of the lack of food globally due to the war in Ukraine and Russia. Recognizing the opportunity offered by the agroexport market in Latin America, Ignacio and his team embarked on a challenge to finance and support small and medium companies in the industry in their international expansion.
Finanex has experienced significant growth since its inception. In just one year, they have completed over 200 transactions for a total value of over $25 million. In addition, they have managed to attract the interest of more than 20 investors from Europe, the United States, and Latin America, who recognize the importance of addressing the global problem of food shortages and supporting the growth of these exporters overlooked by the traditional financial system.
Exploring new markets
Finanex's focus is on the export route to Asia, a less explored but high-potential market due to its high population. While many companies focus on the routes to Mexico and the United States, Finanex sees the opportunity to expand the horizons of Latin American exporters towards more distant and less transparent markets. This gives them a competitive advantage by offering a service that few Fintechs are exploring, allowing them to meet a growing demand and take advantage of broader business opportunities.
Finanex's platform distinguishes itself by focusing on the customer experience. Using digital tools and technology in the backend, the company simplifies the financing and risk analysis process. Exporters can access the financial solutions offered by Finanex through various channels such as email, WhatsApp, or directly on the platform. This customer-focused approach has been key to facilitating access to financing and streamlining the export process.
Growth and challenges
Despite its rapid growth, Finanex has faced challenges in its trajectory. One of the main challenges has been promoting the adoption of digital tools and technology by exporters who have been using the same tools for decades or generations. In a traditional market rooted in conventional practices, convincing the actors involved of the benefits of using technology for financial decision-making has been a gradual process. However, Finanex has committed to educating and promoting the use of digital tools among its clients for Series A, which will allow them to increase efficiency and transparency in the sector.
Finanex's expectations are ambitious: the team will seek to position itself in countries like Brazil, El Salvador, Guatemala, Costa Rica, Paraguay, and Bolivia. In addition, they will seek to quadruple their sales in the next 12 months and finance more than $100 million.
The team
The team that forms this company is highly qualified and diverse, composed of less than 10 people who remain as a small and agile team. From day one, FinanEx has operated profitably and has had a growth rate of 20% per month.
Each member of the team brings valuable experience. Victor Palazzo, co-founder and COO, has more than 30 years of experience in the financial and foreign trade industry, especially at Irving Trust (now Bank of New York). His knowledge and experience are invaluable for his focus on the agroexport sector.
Jon, the third co-founder and CTO, has a more Silicon Valley-oriented profile, with experience in technology and product development. In his last startup, he has raised over +$20 million in tier-1 Silicon Valley funds of funds and has more than 30 FT500 clients, offering Artificial Intelligence services. His experience complements Finanex's approach to foreign trade and finance.
As a driving force in the agroexport sector, Finanex will continue to empower food exporters in Latin America and open up new opportunities in the global market. Their vision and committed team position them as leaders in financial innovation for the sustainable growth of the agroexport sector in the region.