One of the leaders in the MarTech industry, Mitgo Group, has made the first tranche of investment in its recently launched fintech business, Capy. A sum of $20 million is planned to be invested over the next three years in this stage as an initial step. The first part of the investment will be used to develop the prototype platform, with an emphasis on enabling fast and early payment systems.
In Q1 2024, Mitgo Group announced that it was rolling out fintech services for affiliate network publishers, such as cashback services, media buyers, loyalty programs, and BNPL services. The new initiative was supposed to be initiated against a recently acquired embedded finance platform with extensive experience in the field of fintech. Following this acquisition, additional funding and comprehensive support have been given to the business, which is now called Capy, within the global holding company of Mitgo Group, which already owns over 15 companies.
It is known that, in 2023, companies spent $14.4 billion on their affiliate programs, and this year, the sum will reach over $15.7 billion. The company aims to become a channel for over 7% of this total turnover in the next three years, which can amount to more than $1.5 billion, taking into account that the industry is growing. Capital investment in Capy has been made so as to enable its realization at the earliest possible moment. The third quarter of 2024 will see the launch of initial resolutions.
The first iteration of the service will focus on early-payout products, one of the most rapidly growing parts of affiliates now. Although publishers generate significant and constantly increasing revenues, they are still unbanked because traditional banks are unable to assess them properly and offer a good range of services. Financial institutions lose billions of dollars on this client segment, while publishers are deprived of opportunities for growth acceleration by unfair limitations. Mitgo Group and Capy can resolve both issues through their solutions and intermediary roles.
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Right now, another painful point in the affiliate sector is delayed payments. So, dealing with this problem will come second, naturally. The aspect of Capy’s entire suite on an embedded finance basis, which goes together with more than a decade and a half of experience in the field by Mitgo Group, will minimize payment terms from the current industrial average of 60–120 days to only one day. The introduction of these technologies would cause an explosive increase in the partner market and result in multiple profits for its participants because they allow for the acceleration of capital turnover.
These solutions have been recognized by financial giants because they are aware of their huge potential. Currently, Capy is engaging with various significant participants in the finance industry, such as banks, payment systems, and e-wallets, among others. Soon we will declare our alliances with the major players in the European, North American, and other crucial markets that define the global financial trading system.
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