Dealflow | May 9, 2023

El Salvador’s Cubo raises $3.5 million to digitize payments for small businesses

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, May 9 — El Salvador’s Cubo launched in 2021 with an easy-to-use digital solution for micro and small enterprises in Central America to accept and make payments online. The digitization of payments can boost incomes and promote financial inclusion.

The fintech startup raised $3.5 million in a seed investment round to expand into Guatemala, Panama and Costa Rica this year. The company aims to reach 70,000 businesses in Central America, 40% of them women-led.

Financial inclusion

Investors in Cubo’s seed round include the Inter-American Development Bank’s IDB Lab, Soma Capital, Latin Leap and Seedstars.

IDB Lab’s $750,000 investment is its first investment in a Central American fintech venture, and “combines our efforts to boost the nascent Central American entrepreneurial ecosystem with the promotion of accessible and efficient financial services,” said IDB Lab’s Irene Arias.