Mexico City-based Higo, which offers a B2B payments service for SMBs in Latin America, raises $23M Series A led by Accel
Just six months after raising $3.3 million in seed funding, Mexico City-based Higo announced today it has raised $23 million in a Series A round led by Accel.
Context & Ripple Effects
Higo's raise lands in the middle of a funding run for Mexico City SMB fintech: two months earlier, Yaydoo raised a $20.4M Series A for B2B software and payments aimed at the same small-business customer, and Aplazo's $27M Series A extended the wave into consumer-adjacent BNPL. The pattern is a fast seed-to-Series A cadence — Higo went from a $3.3M seed to $23M in six months.
For Accel, this is a repeat Mexico fintech position: the firm led neobank Flink's $12M Series A in February 2021, so Higo extends an existing Mexico City thesis rather than opening a new market.
First-order effects
- Higo gains $23M to scale its B2B payments service for Latin American SMBs just six months after seed, an unusually fast step-up that signals investor conviction in the segment.
- Accel now holds two Mexico City fintech Series A positions in 2021 — Flink and Higo — concentrating its regional exposure in SMB and consumer financial services.
Second-order effects
- Yaydoo, the closest comp in B2B software and payments for Mexican SMBs, now faces a better-capitalized direct rival and pressure to accelerate its own product and sales spend.
- SMB customers in Mexico gain negotiating leverage as B2B payments, credit (Stori), BNPL (Aplazo), and logistics (99minutos) startups all compete for the same small-business relationships.
Third-order effects
- If the 2021 cadence holds through later rounds — as Kapital's $40M Series B in 2023 suggests it can — Mexico City SMB financial tooling consolidates into a recognized venture category with dedicated capital rather than scattered bets.
The trend: Mexico City is emerging as a dense cluster of venture-backed SMB fintech, where B2B payments startups raise successive rounds on compressed timelines and repeat investors like Accel build regional portfolios.