Mexico Fintech Aviva Secures $50M Credit to Scale AI-Driven Microloans

Mexican Fintech Aviva Secures $50 Million Credit Facility

Mexican fintech Aviva has secured a $50 million credit facility from San Francisco-based Community Investment Management. This funding will enable the company to expand its microloan operations in underserved communities, where access to traditional banking services remains limited. The move comes as venture capital dealmaking in Latin America remains near a seven-year low, intensifying the need for alternative financing solutions.

Aviva targets Mexico's underbanked population, particularly those in the informal economy, by offering microloans of $100 to $1,000. Its innovative approach includes using AI to analyze verbal business and household needs shared during seven-minute video calls, converting these narratives into real-time credit profiles. This allows the fintech to build financial data for individuals who lack transaction histories.

The company, which launched in September 2022, has already served about 200,000 clients and operates 200 kiosks across more than 100 cities in nine Mexican states. With this new funding, Aviva aims to triple in size and serve half a million additional customers. The credit line represents a significant step forward for the fintech, which also previously raised $5 million from Covalto and $1.5 million from IDB Lab earlier this year.

A Fintech Targeting the Financially Invisible

Aviva operates in a competitive landscape where digital players like Brazil's Nubank and MercadoLibre's Mercado Pago dominate the middle-class or traditional banking segments. These larger fintechs often avoid the unbanked due to the higher risk and data challenges involved. Co-founder and co-CEO Filiberto Castro explained that Aviva focuses on areas ignored by both banks and big fintechs. "Customer stories are very rich in data, and we are processing those stories and converting them into credit scores for the invisible ones," he said.

The company has posted a 3.1% non-performing loan (NPL) ratio in October, reflecting its disciplined risk management approach. Additionally, 85% of borrowers requested a second loan after repaying the first, indicating strong customer trust and demand for financial services in these communities. Aviva's expansion strategy includes deploying the new funds into cities with minimal financial infrastructure, further extending its reach in Mexico's informal economy.

Aviva currently holds a SOFOM fintech license, which restricts it to lending but allows the company to apply for a full banking license as it scales. The fintech has raised $16 million in equity from funds including Rainforest Capital, DCG, and 500 Global. It is now preparing for a Series A round to expand beyond Mexico and explore new markets.

The broader embedded finance market is showing signs of growth globally, with Italy's market projected to reach $11.96 billion by 2025. In particular, B2B embedded lending is gaining traction among Italian SMEs, highlighting the potential for fintechs to address credit gaps in traditional banking systems. Aviva's success in Mexico could serve as a blueprint for similar initiatives in other developing economies.

What This Means for the Fintech Ecosystem

Aviva's growth strategy underscores the increasing role of AI and alternative data in credit underwriting. As traditional banks continue to shy away from high-risk or data-scarce segments, fintechs are stepping in with innovative solutions. This trend is particularly relevant in markets like Mexico, where over half the population remains unbanked.

The company's repayment system, which allows clients to pay back loans at over 50,000 retail locations, also highlights the importance of localized infrastructure in financial inclusion. With continued support from institutional investors and a clear path to expansion, Aviva is well-positioned to reshape how credit is accessed by underserved populations.