ID Finance Mexico reports Record High Origination levels, demonstrating 84% growth in 1H 2023, following recently secured $30m debt facility

ID Finance Mexico has announced sturdy financial results for the first half of 2023, displaying a sustained growth and financial strength. The company reported a first-half revenue of USD 27.8M, while net income reached USD 0.7M. During the first half of the year, the company originated USD 62.6M of consumer loans, reaching record high monthly originations of USD 13.1M (which represents an 84% increase versus December 2022 origination volume).

Whilst under rapid growth, the company maintained strict control over its portfolio with a continuous improvement of the client quality. In this regard, last year it significantly reduced provisioning levels by 43%. The company has also significantly decreased the operating cost level (by 20% during the previous year). Continuing efforts in business efficiency, together with economy of scale resulted in a net profit of USD 0.7M.

Earlier this year ID Finance Mexico secured a $30 million credit facility from an affiliate company of US institutional investor Spouting Rock Asset Management. Driven by this agreement, the company has managed to successfully deliver on its ambitious growth targets. Overall, the figures highlight the continued success of ID Finance Mexico’s strategy, driven by innovation and risk management capabilities, which have proven effective in navigating economic complexities and delivering consistent results.

Boris Batine, co-founder of ID Finance said: “The strong results of our Mexican business unit are a testament to our relentless focus on customer service, technological innovation, and operational efficiency. After the partnership closed with Spouting Rock, we are happy that progress is materialising in line with our expectations, and we are delivering our promises to our investors as well. We will continue to prioritise these strategic initiatives, as we build Plazo in this market, where we see a great potential to keep increasing our presence and further work towards financial inclusion.”

Leslie Sánchez, country manager of ID Finance Mexico, added: “We have had a fantastic start into the year, despite ongoing economic uncertainty. Looking forward, we are highly optimistic about the growth prospects for ID Finance Mexico and are very exciting about the launch of Plazo in this market.”

While ID Finance Mexico keeps strengthening its core product MoneyMan, the success of financial wellness app Plazo in the Spanish market has led ID Finance to piloting Plazo in Mexico, creating further opportunities for business growth.

The approach of Plazo for this market is working towards financial inclusion by offering an attractive fintech credit card as a more accessible way of financing and as a mean to build Credit History and offer, at the same time all benefits of a banking credit card. As ID Finance commits to developing Plazo, the company aims to deliver new innovative financial solutions that meet the evolving needs of its customers.