Building a Fintech Portfolio
After SMEcorner in India, the Seed Capital & Business Development (SCBD) Facility of Triple Jump has closed its second investment in the fintech space and is now supporting Sempli, a pioneer digital SME lender in Colombia. Founded in 2016 and currently at its Series A round, the company aims to deploy debt to unserved local SMEs, with tenor ranging from 3 to 60 months.
The Colombian market is mostly dominated by retail banks, with limited ability to serve SMEs. Compared to traditional lenders, Sempli has a higher risk appetite to serve small and medium companies, e.g. by accepting a shorter credit history or a lower matching collateral. By using technology, transactions costs are expected to be lower and, by using multiple data, information asymmetry will be reduced.
Sempli combines manual and automated analyses to fuel a proprietary scoring system called SempliScore. Eligible applicants can expect to receive a loan faster than with traditional financial institutions, typically within days from their application. Sempli will provide digital loans in local currency equivalent to USD 10-200K, thus serving the lower bracket of the Missing Middle.
SCBD supports Sempli through venture debt, earmarked to build up a loan portfolio of local SMEs. If the scale up proves successful, Sempli will further grow into a major digital lender in Colombia.