Mexico-based buy now, pay later (BNPL) solutions provider Kontempo has received more than $30m in a seed funding round to support its growth, reported Latamlist.

Canadian Venture capital company Portage led the round, which includes a combination of $6.5m in equity and $25m in debt.

A number of investors including Scor P&C Ventures, Upper90, Asymmetric Capital Partners, Tectonic Ventures, and Ignia also took part in the fundraising.

Kontempo aims to use the fresh capital to add new employees, grow its merchant chain and further expand its technology offerings.

Currently, the company develops embedded payment and funding tools to facilitate business-to-business (B2B) transactions in Latin America.

It also provides B2B clients with interest-free BNPL instalment schemes.

Kontempo CEO and co-founder Matthew Meehan said: “Kontempo sees an opportunity with its BNPL product to increase the use of digital payments in the B2B space, boost sales for both online and offline distributors and suppliers to SMEs, and be an early mover in building critical payments infrastructure for the still small but fast-growing B2B eCommerce market.”

Meehan further noted: “Kontempo has signed contracts with 26 merchant partners in Mexico.

“These 26 merchant partners represent access to over 100,000 SME ‘buyers,’ or end-users, of our product.”

Kontempo expects to develop BNPL solutions that allows users to reduce their processing charges and delays.

Its clients can permit credit for transactions that have net durations of 30, 60, or 90 days, while the seller’s credit or credit cards currently have an average payment duration of 30 days.

Kontempo also provides an API-powered solution for users to transact on instalments during checkout without asking for their credit card or bank account details.

In addition, the fintech employs an algorithm to decide the credit worthiness of a customer. This feature aims to enable struggling small and medium-sized enterprises (SMEs) to receive credit easily.