Accion announced that it has completed an investment totaling US$1.9 million in CrediConfia, a microfinance institution (MFI) providing financial services to micro-entrepreneurs and low-income households in rural and semi-urban areas in east-central Mexico.
The investment provides Accion with a nine percent stake in CrediConfia, a board seat, and the opportunity to engage in a three-year service contract providing governance, management and technical support to the MFI.
A key element of that support will include deployment of Accion's credit technology to expand and improve the scope of CrediConfia's products, improve loan quality and profitability and, in turn, help position CrediConfia as a leading provider of microfinance products and services in Mexico.
CrediConfia's goal is to serve the economically active poor in Mexico's informal economy by offering microcredit loans to help expand their businesses and improve their living standards. Currently, CrediConfia serves 21,500 clients through a network of 25 branches covering the states of Mexico, Puebla, Hidalgo and Michoacan.
"We have seen major strides in Mexican microfinance in recent years, but there are many regions of the country that remain underserved," said Michael Schlein, Accion President and CEO.
"We are impressed with CrediConfia's rapid growth, and excited to be able to help accelerate that growth."