Incofin IM invests USD 10 million in Financiamiento Progresemos of Mexico
Antwerp, 17 October 2018 – Leading impact investment manager Incofin Investment Management (Incofin IM) is pleased to announce the MXN 188 million (USD 10 million) investment in Financiamiento Progresemos, S.A. de C.V. SOFOM ENR (Progresemos), a leading rural Mexican non-bank financial institution serving micro and small entrepreneurs.
Leading this investment round, agRIF and Volksvermogen (managed/advised by Incofin IM), acquired a substantial minority stake in Progresemos. Several of the company's current shareholders also participated in this round. This additional capital facilitates Progresemos' expansion and reinforcement of its current operations in Mexico's more rural regions, including the further rollout of its agri-lending product.
Through its unique business model based on co-financing to partner lender institutions that serve micro and small entrepreneurs as well as direct financing through its own branches, Progresemos reaches out to some of Mexico's most underserved regions. Established in 2006, Progresemos is one of the larger non-bank financial institutions in Mexico and category-leader in the co-financing model, servicing over 120,000 borrowers across 22 Mexican states.
"We are very pleased to team up with the existing group of local and international shareholders of Progresemos, and further strengthen the institution's impact footprint, whilst contributing actively to accelerate the next phase of the company's growth.", said Ruben de Haseth, Director Private Equity of Incofin IM and new board member of Progresemos.
Roberto Flores Athié, co-founder and Director General of Progresemos added, "Over the last 12 years, Progresemos has established itself as a relevant player in the Mexican MSE financing market and with the incorporation of Incofin and their extensive experience in rural finance and impact investing, we look forward to working closely with them in order to deliver on Progresemos' ambitious growth strategy for the coming years and thus further expanding its outreach and impact."