Sacra estimates Kapital hit $72M in annualized revenue in 2023, growing 755% year-over-year, largely driven by their $50M acquisition of Mexican bank Banco Autofin which contributed approximately $45M in annualized revenue.

The B2B neobank's revenue mix is split between lending (60%) and SaaS/tech revenue (40%). The lending segment includes interest income from credit cards, working capital loans, and their Kapital Flex product, while tech revenue comes from their $40/month SaaS subscription, wire transfer fees, interchange, and funding fees for prepaid cards.

Kapital has achieved strong product-market fit among SMBs with $2-10M in ARR and 10-100 employees, though they're increasingly moving upmarket with enterprise customers like "the Mexican IKEA" which has over 8,000 employees. Their channel partnership strategy with local chambers of commerce has kept customer acquisition costs low by only paying when businesses sign up.

The company maintains high lending margins of 50-70% across Latin America, significantly above US/European rates. Net dollar retention is reportedly around 450% as customers expand usage from an average of 5 monthly payments to 60+ payments, driven by cross-selling additional financial products and increased platform engagement.

Kapital was founded in 2020 by René Saul, Fernando Sandoval, and Eder Echeverria-Arroyo, evolving from their experience operating an offline lending business for small and medium enterprises in Mexico and Peru.

Kapital found product-market fit as an integrated banking and financial management platform for Latin American SMBs with 10-100 employees and $2-10M in annual revenue, who struggled with fragmented financial tools and lack of real-time visibility into their operations.

The core product combines a banking platform with an ERP system that automatically ingests electronic invoices (mandatory in Latin America) to provide real-time financial visibility. When businesses connect their account, Kapital centralizes their entire cash flow management - from tracking accounts receivable and payable to executing vendor payments and managing payroll.

Rather than requiring SMBs to piece together 6-7 different systems, Kapital provides an all-in-one platform where business owners can monitor cash positions, pay vendors, run payroll, and manage expenses. The platform leverages Latin America's standardized e-invoicing system to automatically populate financial data, eliminating manual data entry that plagues similar tools in the US and Europe.

Key features include automated invoice processing, vendor payment management, multi-currency accounts, and an AI-powered financial analytics dashboard that helps businesses optimize spending and identify cost-saving opportunities.

Kapital is a B2B neobank that combines banking services with an integrated ERP system, targeting small and medium-sized businesses across Latin America. The company generates revenue through a dual-stream model: 60% from interest income on lending products and 40% from recurring SaaS subscriptions for their financial management platform.

The company's core product is a comprehensive banking and financial management platform that centralizes business operations including current accounts, expense management, accounts payable/receivable tracking, and real-time financial analytics. This is monetized through monthly SaaS subscriptions. Kapital uses revolving credit lines as a hook to attract customers, then cross-sells additional services like corporate cards, payroll processing, and international payments.

What sets Kapital apart is their integration with Latin America's mandatory e-invoicing systems, allowing them to automatically capture and analyze business transaction data. This gives them unique insight into customer cash flows and credit risk, enabling better lending decisions. The company leverages channel partnerships with local chambers of commerce for customer acquisition, paying only when businesses sign up. Their multi-product strategy and focus on becoming the central financial operating system for SMBs drives high customer retention and expanding revenue per customer over time.

Kapital operates in the B2B neobank and financial management market across Latin America, where competition breaks down into three main categories: incumbent banks, consumer-focused neobanks expanding into B2B, and pure-play B2B fintechs.

Legacy players like Santander, HSBC, Citi, BBVA and Scotia dominate corporate banking in Latin America but have underinvested in technology, particularly for SMBs. These banks focus primarily on large enterprise customers and consumer banking, with dated infrastructure that hasn't been meaningfully updated in 30-40 years.

Nubank and Banco Inter have captured significant market share in consumer banking and are expanding into business banking. These players benefit from strong brand recognition and existing relationships but lack specialized B2B features. With only 20-50 banks per country in LatAm versus 80,000 in the US, there's room for multiple winners as banking digitizes.

Pure-play B2B fintechs like Clara and Mendel focus on specific verticals like expense management and corporate cards. However, they typically offer point solutions rather than full banking and financial management platforms. The relatively low interchange rates in LatAm (0.5-0.9% vs 1.5-2.5% in US) make pure-play card businesses less viable, pushing companies toward multi-product strategies. Unlike the US where businesses typically use 5+ different financial tools, the lack of established SaaS players in LatAm creates an opportunity for vertically-integrated providers to capture multiple product categories.

Kapital has tailwinds from Latin America's underserved SMB banking market and mandatory e-invoicing infrastructure, with opportunities to expand into adjacent markets like embedded finance, cross-border payments, and treasury management across emerging markets.

With only 20-50 banks per country in Latin America compared to 80,000 in the US, and SMBs representing 50% of regional GDP, there's massive whitespace for digital-first banking. Kapital's integrated banking and ERP platform serves the 99.5% of Latin American companies that are SMBs, with potential to capture significant share of the $1.5T+ in annual business payments across the region.

Kapital's stablecoin-powered cross-border payment infrastructure positions them to serve the 70%+ of Latin American digital commerce that is international, compared to just 26% in the US and UK. Their USDC treasury product helps companies protect against currency volatility, with the Colombian peso fluctuating between 3,200-5,000 per USD in recent years. This creates expansion opportunities into other emerging markets facing similar challenges.

By vertically integrating banking, lending, and back-office functions, Kapital can expand into embedded finance - providing their infrastructure to other platforms serving SMBs. Their Kapital Flex product, which offers B2B buy-now-pay-later for inventory purchases, demonstrates the potential to build new financial products on top of their core platform. With 60% of revenue from lending and 40% from SaaS, they've proven the model of combining financial services with software.

Regulatory arbitrage risk: Kapital's competitive advantage partly stems from Mexico's e-invoicing infrastructure and lighter fintech regulation compared to the US. As LatAm financial markets mature and regulation tightens, Kapital may face increased compliance costs and competition from traditional banks upgrading their tech stacks. Their recent bank acquisition signals awareness of this risk but also increases regulatory overhead.

Currency volatility exposure: While Kapital helps customers hedge against local currency volatility through USDC, extreme FX swings could strain their lending business. If borrowers' revenues are in rapidly depreciating local currencies while loans are USD-denominated, default rates could spike. Their 50-70% lending margins provide some buffer but may not fully protect against severe currency crises.

Geographic expansion complexity: Kapital's product leverages Mexico-specific infrastructure like mandatory e-invoicing. As they expand to Colombia, Peru and beyond, they must rebuild integrations for each country's unique systems and regulations. This could slow growth and increase costs compared to their efficient Mexico operations. Channel partnerships with local chambers of commerce help but don't fully solve the integration challenges.