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Mexican digital and banking services platform Covalto (website) announced that it would list on the Nasdaq through a Special Purpose Acquisition Company (SPAC). The deal values the company, formerly known as Credijusto, at an implied pro forma enterprise value of $547 million and could generate up to $177 million in capital before expenses, according to Covalto.
The fintech’s listing comes with $60 million in funding, $30 million of which had been previously announced. The other $30 million will come from LIV Capital, LIVB’s parent company, SPAC, which Covalto will use for the IPO.
Recently, Covalto became the country’s first “fintech bank” after it bought a regulated bank, overcoming one of the biggest challenges for Mexican fintechs by cutting through red tape.
Covalto estimates that lending will reach more than $270 million this year, with lending expected to reach $400 million in 2023.