Banco Santander México acquired a significant equity position in our client InnoHub Mexico, aimed to accelerate the SMEs’ growth.
SOLCARGO advised InnoHub Mexico in the negotiations for the equity investment made by Banco Santander México. The M&A team was led by partner Fernando Eraña and included associates Juan Carlos Izaza and Eduardo Montenegro. This new investment will allow InnoHub to develop a platform that provides advisory to more than 1 million SMEs and its 7 million employees in Mexico, by providing access to digital systems and solutions and automatized processes; and support the financial strength of the SMEs, increasing the Mexican productive sector and economy.
The deal closed on September 25th, 2019 for a confidential transaction value and entailed the execution of commercial agreements with several portfolio companies of InnoHub, such as: Avanttia, as well with other strategic partners, such as: CONTPAQi, with the purpose of boosting the growth of the SMEs by providing access to alternative financial services, such as access to checks accounts, efficient payroll services and digital banking services, including access to bank financing, through digital platforms and mechanisms.
SMEs in Mexico represents 4.1 million economic units that employ 75% of the Mexican workforce and produce one third of the country’s Gross Domestic Product.
InnoHub Mexico is a Venture and Company Builder that identifies, invest, builds and scale technology startups to develop SMEs in Mexico and LATAM. InnoHub has a platform to reach more than one million SMEs.