IDB Lab Supports Paigo to Expand Access to Financing for MSMEs in Uruguay

MONTEVIDEO - IDB Lab, the innovation and venture arm of the Inter-American Development Bank Group (IDB Group), has approved financing of up to US$10 million for Paigo, a Uruguayan fintech company, to expand access to business credit for micro, small, and medium-sized enterprises (MSMEs) in Uruguay. The operation includes a loan of up to US$5 million, with the possibility of an additional US$5 million in the future.

The operation places particular emphasis on women-led businesses, entrepreneurs without a credit history, and businesses that face difficulties accessing financing through traditional channels.

MSMEs play a central role in Uruguay's economy, yet many face barriers to accessing formal credit due to factors such as limited banking histories, collateral requirements, and processes that do not always reflect the characteristics and cash flows of small businesses.

"This operation demonstrates how financial innovation can help address a concrete barrier to economic development: MSMEs' access to financial resources tailored to their characteristics and cash flows. At the IDB Group, we want to support solutions that combine technology, private investment, and inclusion to strengthen the business environment and open new opportunities for growth in Uruguay," said Miguel Porrúa, IDB Group Representative in Uruguay.

"At IDB Lab, we invest in innovative solutions that transform how small businesses access financing. Our support for Paigo aims to strengthen a model that uses technology and data to reach businesses that have traditionally had fewer opportunities to access credit and support their growth," said Magdalena Coronel, Chief of IDB Lab's Investment Division.

"At Paigo, we firmly believe that credit is an essential tool for the development of individuals and businesses. In Uruguay, more than 90% of businesses are MSMEs, and the vast majority have until now lacked a practical and accessible way to obtain credit. IDB Lab's support in funding these operations is a tremendous source of pride for us and reaffirms our commitment to expanding inclusion and access to credit," said Rafael Mantero, CEO of Paigo.

Founded in 2018, Paigo is a Uruguayan fintech company that uses alternative data, analytics, and artificial intelligence models to assess credit risk and offer financing solutions tailored to the needs of MSMEs.

Through its MSME financing product, Paigo integrates with payment platforms such as Handy and uses sales and transaction data to assess repayment capacity, determine financing amounts, and monitor loans. This model allows repayments to be linked to each business's actual sales flows, while also providing financing options for companies with variable revenues.

With IDB Lab's support, Paigo will be able to scale this model and reach more small businesses across Uruguay. The financing aims to help MSMEs access resources for their business needs more efficiently and support their growth.

About IDB Lab

IDB Lab is the innovation and venture arm of the IDB Group. We focus on entrepreneurship and technology to cocreate solutions for development challenges and spark new industries for growth in Latin America and the Caribbean. IDB Lab supports high-impact startups and the innovation ecosystems they need to thrive through flexible financing, practical knowledge, and global connections. www.bidlab.org

About Paigo

Paigo is a Uruguayan fintech company founded in 2018 that provides digital financing solutions. The company uses data and analytical tools to assess credit risk and facilitate access to financing, including for micro, small, and medium-sized enterprises with limited credit histories or insufficient access to traditional financial services. www.paigo.com.uy