Addem Capital underwrites Credmei’s first deal on Credix
As announced last week, we are excited that the first part of a 5M USDC facility with Credmei went live on Credix with Addem Capital as underwriter!
The deal is a 24-month revolving facility with an 80% Senior Tranche by the Credix Liquidity Pool and a 20% Junior Tranche underwritten by Addem Capital. The originator provided first-loss capital as over-collateral.
Credmei is a Brazilian fintech specializing in advancing short-term receivables from SMEs in Brazil, mainly from the agribusiness and food industries. Founded by serial entrepreneur Guilherme Ribeiro in 2013, the company was born with the mission of revolutionizing the short-term receivables financing market in the country. Targeting SMEs with yearly revenue between 1 and 30 million USD, Credmei has always focused on using technology and data to deliver a first-class product to its clients. From a seamless user interface where SMEs can upload the receivables they wish to advance and access the whole suite of Credmei’s products, to an automated loan underwriting process that evaluates receivable advancing requests in minutes, Credmei built a full-fledged digital platform to serve SME’s in Brazil.
Based in Uberlândia in the state of Minas Gerais, a region of great importance to Brazil’s agribusiness, Credmei is a bootstrapped and profitable company that has been running its loan portfolio using its own shareholders’ capital. During the last 10 years, they operated +95 million USD in short-term receivables, which, due to their very efficient and thought-through loan underwriting process, resulted in an impressive 0.03% overall historical portfolio loss.
Credmei’s loan underwriting process starts with the onboarding of the SMEs into the platform, where they need to provide multiple legal and financial documents of the company and its shareholders. Besides checking the documents, one of the fintech’s field sales team members always conducts an on-site visit with the potential client as part of the onboarding diligence. Once approved, the client may upload receivables to the platform, respecting a dynamic credit limit established by Credmei based on the company’s financials and countless other data points gathered by their APIs.
With +100 APIs connected to a bunch of different public data sources, for each receivable advancing request, Credmei also runs thousands of cross-analyses using information from their clients (assignor SME), their clients’ clients (debtor SME), and the receivable itself. At this stage, Credmei’s main goal is to prevent fraud, make sure the goods listed in the invoice are real and were delivered, and that the debtor SME is able to pay for them. This process lasts minutes, and, if approved, Credmei will purchase the receivable from the client, who promptly receives a cash transfer directly into their bank account. Finally, in the event that any debtor SME is unable to honor the payments on time, the assignor SME is contractually obligated to repurchase the receivable from Credmei on the platform.
“We would like to thank Credix and all the investors for believing in Credmei. We are very excited about our partnership and look forward to the next one! I am sure that together we will transform the short-term receivables market in Brazil,” says Guilherme Ribeiro, CEO and founder of Credmei.
The Credmei facility on the Credix platform was structured with the participation of Addem Capital, a Mexico-based private debt fund that provides alternative structured debt facilities to innovative non-bank lenders in emerging markets. Addem and Credix nurture a close partnership, with deals in both Mexico and Brazil. Credmei was their first investment in Brazil’s short-term receivables market, which is one of the largest and most attractive asset classes in the country.
“Our deal with Credmei is a clear step forward in our path to revolutionize Latin America’s access to structured debt in the entrepreneurial landscape. The alliance with Credix has been crucial for our entrance into the Brazilian market. We are confident that we’ll continue to overcome the limits of impactful investing across the region.” Luis Serio, Investor Relations Principal.
About Credix
Credix is a global portal that connects institutional investors with high-quality credit deals in Latin America. Its proprietary technology empowers the tokenization and securitization of debt facilities, creating programmable assets and automating capital markets workflows. Credix is moving the $800 billion private credit market into the digital era.
The company was founded in 2021 with the vision of changing how the global debt capital market works today. Credix is backed, among others, by Motive Partners, ParaFi, Valor Capital, Victory Park Capital, MGG Investment Group, Circle Ventures, and DRW Cumberland.
About Addem Capital
Addem Capital is a Mexico-based private debt fund that provides alternative structured debt facilities within five industries: fintech, energy, healthcare, real estate, and agro-sustainable foods. They create and fund tailor-made facilities for companies that contribute to strengthening the entrepreneurial ecosystem in Latin America. Addem Capital Group believes that in the medium-to-long term, money will become a commodity, and financial players will compete with infrastructure rather than large checks. Addem aims to become Latin America’s most relevant liquidity provider by eliminating unnecessary debt intermediaries and reaching excellence in our underwriting and servicing processes.
