What Covalto does

Covalto (legally Banco Covalto, S.A., Institución de Banca Múltiple) is a Mexican-regulated digital bank founded in 2015 and headquartered in Mexico City, serving small and medium-sized enterprises and individual consumers. The platform is delivered 100% digitally through the covalto.com website and a mobile banking app, with no physical branches, and offers a unified suite of products: personal and business deposit accounts (Cuenta para Personas, Cuenta para Negocios, Cuenta Básica, Cuenta Nómina, Cuenta Crece, Cuenta Empresa), SME credit products without traditional guarantees (Crédito Ágil Covalto, Factoraje accounts-receivable financing, Arrendamiento equipment leasing), investment instruments (Pagaré Lealtad, Pagaré Simple, CEDE Interés por Adelantado, Certificado de Depósito, Constancia de Depósito with rates up to 10.27% annual and IPAB protection up to 400,000 UDIs), and fiduciary services through the proprietary Fidtech® platform. The bank is regulated by CNBV and Banco de México, holds an investment-grade rating from HR Ratings, and operates a biometric authentication system and a Google Cloud partnership for AI-driven operations.

The revenue model is balance-sheet driven, generating net interest income from SME lending and fintech venture debt (e.g., participation in Clara's $70M and $150M facilities and Banco Plata's $300M facility), investment product spread on customer deposits, fee income from fiduciary and trust administration, and transaction fees. Covalto combines a product-led growth motion (self-serve digital onboarding and credit application) with an enterprise field sales motion for structured credit, venture debt, and fiduciary mandates serving mid-to-large companies such as VEMO, Maxikash, Grupo Bebo, and Alvos. Distribution is exclusively domestic (Mexico) via digital channels, supplemented by an executive sales team and call center support.

Covalto has raised approximately $320M+ across multiple funding rounds from 2016 through 2022, including a 2019 round led by Goldman Sachs and Point72 Ventures, $100M from Credit Suisse in 2020, and institutional debt from FIRA (MXN 3.8B credit line) and the U.S. DFC ($10M) in 2022. The bank acquired Banco Finterra and VISOR ADL in 2021 to accelerate its regulated banking license and digital infrastructure, and announced a planned merger with LIV Capital Acquisition Corp in 2022 to pursue a U.S. listing.

Name

Covalto

Legal name

Banco Covalto, S.A., Institución de Banca Múltiple

Website

https://covalto.com

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Covalto is a Mexican-regulated digital bank (Banco Covalto, S.A., Institución de Banca Múltiple) that delivers 100% digital deposit accounts, guarantee-free SME credit, investment products, and fiduciary services to SMEs and individuals in Mexico via a cloud-based platform.

Ownership category

akta.pro rank

Product category

Digital Banking

NAICS

Depository Credit Intermediation (5221), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Compliance & Regulatory Operations (AML/KYC, Reporting, Audit) (FSAGAAAL)

Keywords

• Digital banking services
• SME lending
• Fiduciary services
• Deposit accounts
• Investment certificates

Headquarters

HQ city

Mexico City

HQ country

Mexico

HQ region

Latin America

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure, Others

Revenue model

1. Interest Income from Credit Products: Revenue generated from interest charged on credit products including Crédito Ágil (quick credit), factoraje (accounts receivable financing), and arrendamiento (leasing). These products target SMEs and growing businesses requiring financing without traditional guarantees.
2. Investment Product Management: Revenue from managing investment products including pagarés, CEDEs, and certificates of deposit. The bank attracts customer deposits and pays competitive interest rates while deploying capital into credit operations.
3. Fiduciary Services (Fideicomisos): Fee-based revenue from trust administration services including payment source/guarantee trusts, administration and investment trusts, real estate development trusts, conditioned deposits (escrow), heritage administration, and restricted zone trusts.
4. Venture Debt and Structured Financing: Provides venture debt and structured debt financing to growth-stage companies, fintechs, and startups in Mexico, earning interest income on these investments.
5. Transaction and Account Fees: Fee income from various banking transactions including SPEI transfers (though unlimited free transfers from online banking are offered), account services, and other banking operations.

Pricing tiers

Go-to-market motion3 records

Distribution channels5 records

Marketing channels5 records

Core offering

Covalto operates as a regulated Mexican digital bank offering deposit accounts (personal, payroll, and business), SME credit products (Crédito Ágil, Factoraje, Arrendamiento), fixed-income investment instruments (CEDEs, pagarés, certificados de depósito), and fiduciary/trust services (Fideicomisos) through its online platform and mobile app. All products are accessible 100% digitally with no minimum opening balances or management fees, and deposits are IPAB-protected up to 400,000 UDIs.

Product overview

Covalto (Banco Covalto S.A., Institución de Banca Múltiple) is a Mexican digital banking platform offering an integrated suite of financial products for individuals and SMEs. The portfolio includes personal and business deposit accounts (Cuenta para Personas, Cuenta para Negocios, Cuenta Básica, Cuenta Básica Nómina, Cuenta Crece, Cuenta Empresa), credit solutions (Crédito Ágil Covalto, Factoraje, Arrendamiento), investment instruments (Constancia de Depósito, Certificado de Depósito, CEDE Interés por Adelantado, Pagaré Simple, Pagaré Lealtad), and fiduciary services (Fideicomisos). All products are accessible through the Banca en Línea digital platform. The bank emphasizes no minimum opening amounts, zero management fees, and IPAB protection up to 400,000 UDIS.

Differentiator

Problem solved

Functional benefit

Brands

• Crédito Ágil Covalto: Digital credit product for SMEs providing quick liquidity financing
• Factoraje
• Arrendamiento
• Pagaré Lealtad
• CEDE Interés por Adelantado
• Certificado de Depósito
• Fideicomisos
• Cuenta Básica
• Cuenta Básica Nómina
• Cuenta Crece
• Cuenta Negocio

Products and services

• Crédito Ágil Covalto Quick digital credit line for SMEs requiring liquidity without traditional guarantees. 100% digital application and approval, targeted at growing Mexican businesses needing working capital.
• Factoraje Factoring service that provides immediate cash to businesses in exchange for their accounts receivable, helping improve cash flow and working capital cycles.
• Arrendamiento Equipment leasing product enabling businesses to acquire productive assets without compromising their capital, providing predictable monthly payments and asset access.
• Cuenta para Personas (Personal Bank Accounts) Personal bank accounts for individuals with no minimum opening amount, no management commissions, and no minimum balance requirements. Includes basic accounts, payroll accounts (Cuenta Básica Nómina), and growth accounts (Cuenta Crece) with access to investment tools. IPAB-protected up to 400,000 UDIs.
• Cuenta para Negocios (Business Bank Accounts) Business bank accounts designed for SMEs, individual entrepreneurs with business activity, and legal entities, separating personal and business finances. Includes Cuenta Empresa for legal entities. No opening minimums, management commissions, or minimum balance requirements.
• Constancia de Depósito 3-year fixed-rate deposit certificate paying 9.25% annual interest, with no maximum investment limit. Interest paid at maturity or monthly, IPAB-protected up to 400,000 UDIs.
• Certificado de Depósito Deposit certificate with fixed or variable rate options available at 84, 168, 252, or 364-day terms. Interest paid every 28 days, offering predictable monthly yields to investors.
• CEDE Interés por Adelantado Certificate of deposit variant where interest is paid upfront at the time of contracting, available at 90, 180, or 360-day terms. Provides immediate cash flow to investors.
• Pagaré Simple Simple promissory note investment product offering fixed returns paid at maturity, providing predictable yields for individual and business investors.
• Pagaré Lealtad Loyalty promissory note offering bonus interest rates for consistent investors who renew, with rates up to 10.27% annually at 182-day terms. Renewal bonuses of up to 5.5% extra at 91-day renewal 13, or up to 10% extra at 182-day renewal 26. Available at 7, 91, or 182-day terms.
• Fideicomisos (Fiduciary/Trust Services) Enterprise fiduciary services covering payment source/guarantee trusts, administration and investment trusts, real estate development trusts, conditioned deposits (escrow), heritage/patrimonial administration, and restricted zone trusts. Delivered through the proprietary Fidtech® digital platform that digitizes trust agreement processes and enables online tracking.

Quantifiable outcome

• 100% digital credit approval process with fast turnaround
• +3 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

One partnership is on record.

• Google CloudcoreTechnology or Integration · 1 January 2025Strategic partnership with Google Cloud to drive AI adoption across all levels of Covalto's operations, enhancing digital banking capabilities and customer experience through advanced cloud infrastructure and AI technologies.

Scale indicators5 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Nu México (Nubank): Mexican subsidiary of Nubank, the largest digital banking platform in Latin America. Direct competitor offering digital-first accounts, credit cards, and personal loans to Mexican consumers and small businesses via a mobile-only model.
• Klar: Mexican digital bank offering deposit accounts, credit, and investment products to individuals and SMEs via a mobile-first platform. Directly comparable in customer segment (SMEs/individuals) and digital-only distribution model.
• Konfío: Mexican fintech focused on digital lending to SMEs without traditional collateral requirements. Directly competes with Covalto's Crédito Ágil and Factoraje products in the underserved Mexican SME lending segment.
• Hey Banco: Digital bank launched by Banregio targeting Mexican consumers and SMEs with a mobile-first platform. Direct competitor in both customer segments, with a similar deposit and credit product set.
• Spin by OXXO: Digital banking and payments platform launched by Femsa/OXXO, offering accounts, debit cards, and credit. Directly comparable as a digital-first financial services platform targeting Mexican consumers and SMEs through non-branch distribution.
• Albo: Mexican neobank providing multi-currency accounts, debit cards, and personal credit lines through a mobile app. Comparable digital banking model and individual/SME segment, though with stronger consumer rather than SME tilt.

Broad incumbents

• Banorte: One of Mexico's largest commercial banks with strong SME and corporate banking presence. Offers comparable credit, deposit, and investment products to Covalto's segments while competing with Hey Banco in the digital space.
• Banco Azteca: Mexican commercial bank focused on mass-market and underbanked consumers/SMEs through extensive branch and digital distribution. Comparable in serving similar credit-underserved segments with a deposit, credit, and payments product suite.
• Mercado Pago: Digital payments and financial services arm of Mercado Libre operating across Mexico. Offers accounts, credit lines, and payment services to individuals and merchants, overlapping Covalto's digital banking offering with a much larger merchant base.
• BBVA México: One of Mexico's largest commercial banks, offering deposit accounts, lending, and investment products to consumers and SMEs. Competes directly with Covalto across the full banking suite while also being a Covalto co-lending partner via BBVA Spark.

Market position

Strengths5 records

Weaknesses2 records

Competitive moat4 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/bancocovalto
• Facebookfacebook.com/BancoCovalto
• Xx.com/covalto

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles6 records

Funding overview

Funding rounds7 records

Investors20 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments5 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Covalto