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Mexico’s Auto-parts Startup ‘RIGS’ Teams Up With Tribal Credit

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Mexico's Auto-parts Startup 'RIGS' Teams Up With Tribal Credit

The auto parts market in Mexico has seen tremendous growth over the past five years, redefining how the automotive industry operates and how value in the space is created. A McKinsey report highlights that the online automotive market e to reach $1.4 billion by 2030, with an annual growth rate of 3%.

Fueled by brick-and-mortar players entering the online space, this growth is estimated to continue rising as more consumers shift towards online shopping at the onset of COVID-19.

Residing in Guadalajara, “the Silicon Valley of Mexico”, RIGS is a D2C tech startup that connects auto parts, buyers, with retailers under one platform.

RIGS is on a mission to provide direct access to top-notch auto parts for customers in Latin America. CEO of RIGS, Nestor de Haro, tells us the company’s story, how he established an e-commerce platform and the current challenges in the aftermarket industry in Latin America.

Digitising the auto parts marketplace

Nestor’s entrepreneurial journey began eight years ago. With a B.S. of Industrial Engineering from Tecnologico de Monterrey under his belt, he started building his first startup, RIGS. At the time, RIGS’ initial product was a search engine technology built to help customers search and find auto parts online in a fast and easy way.

“The technology that we built enabled many customers to easily find and search for auto parts. That’s when we knew that the future was going to be e-commerce and commercializing every single product online,” Nestor said.

Nestor saw a promising opportunity for digitizing the automotive market. Combining the technology he built with his passion for automotive, RIGS evolved into an e-commerce platform that provides thousands of world-class and affordable auto parts from multiple brands, which can be delivered in a few days anywhere in Mexico.

The startup encourages car owners to buy the auto parts and fix their own cars, saving costs of spending repairs at mechanic shops.

“If you go directly to the mechanic and want to change something in your car, he will charge you for both the car parts and the labour. And even though most of the parts you buy at the mechanic are not good quality, they still charge you a high price,” Nestor said, adding that more customers now prefer buying their own auto parts to only get charged for the cost of labour.

Mexico is the 5th largest auto parts producer worldwide, with $92 billion annual revenues and one of the biggest vehicle manufacturers in the world. The aftermarket industry in Mexico has several active players. One of them is OEMs, original equipment manufacturers, which sell auto parts for global vehicle brands like BMW, Chevrolet, Nissan and Toyota and whose main profit comes from providing expensive car repair services. Other players include the sellers who import cheaper auto parts from China and distribute them locally to make some profits.

According to Nestor, the scarcity of high-quality and well-priced auto parts is one of the main challenges in Mexico’s aftermarket industry.

“If you live in Veracruz, most of the retailers near you will only commercialise the auto parts that your mechanic would buy because they are cheap. If you want to obtain good quality and better products, it’s not that easy to find in your local region,” explained Nestor.

RIGS’ platform provides over 2 million auto parts from retailers in Mexico and the U.S. to customers in different parts of Mexico, including Monterrey, Guadalajara, Mexico City and more. The startup’s proprietary technology simplifies the process of searching and buying parts from multiple wholesalers in the same place.

Challenges in the online aftermarket industry

Like many e-commerce platforms, the process of building consumer trust takes time.

“Online shoppers always fear being exposed to fraud or encountering problems with the product. Some customers want our physical presence in their state or city because it makes them feel more secure using our services. But it’s not always easy for us to create multiple physical locations.”

There are several other challenges in the industry. One of them is the lack of information provided by sellers about the car parts they display for sale. Many customers have no experience buying parts for their car and cannot identify what they need.

To overcome those issues, RIGS developed a simple, easy-to-use search engine technology where customers can provide information about their cars, including the model. The year it was released, the engine type, so that they receive suggestions for the car parts that best suit their needs.

“We are simplifying the purchasing process for customers who don’t have the technical know-how when it comes to their cars. This technology is what sets us apart from the rest of the auto parts sellers in the industry,” Nestor said.

Tribal Credit powers RIGS to make cross-border payments  

On its journey of growth in LATAM, RIGS chose Tribal to help with their international payments.

Like many founders in Mexico, Nestor encountered difficulties opening a business bank account and challenges navigating cross-border payments. According to Nestor, Mexican banks assume their customers only make transactions with local companies.

“Most of the tools we use to improve our business are based in the US and other parts of the world. But banks constantly decline the transactions because their algorithm cannot identify that this specific company is transacting with companies from different parts of the world,” explained Nestor, adding that declined transactions cause financial losses and cut into his startup’s budget.

Another challenge is the fixed transaction times imposed by banks, where transactions can only be made between 9 am and 7 pm Monday to Friday. Transactions outside those time frames will get declined.

“Even if you have to make big payments, you’re only allowed to make them between those time frames. It’s ridiculous. Both your company and card need to be available 24/7. Banks in Mexico are not considerate to startup founders who are working locally but transacting globally.”

tribal credit dashboard screenshot

Source: Tribal Credit

Empowering RIGS to gain better access to financial services, Tribal facilitates smooth online payments including cross-border transactions around the world so that founders are never held back by declined transactions.

“With Tribal, it’s different. We can buy it anytime we want. We have a specific credit balance and we always know how much money is left. The most important thing for me as well is that we pay once a month,” Nestor said.

Tribal helps RIGS overcome issues like high currency exchange rates imposed by Mexican banks.

Banks in Mexico decline increasing credit line requests made by startups, even when they have money in the bank. Tribal enables startups like RIGS to request a higher credit line whenever needed, saving the startup valuable time going to the bank and filling lots of paperwork and awaiting approval.

“It’s very complicated for a startup in Mexico to make global transactions. Banks in Mexico are not prepared for the globalized market. It’s great when international companies like Tribal trust in our company.”

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Saudi Fintech Lendo Signs MOU with J.P. Morgan

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Saudi Startup Lendo Joins Forces with J.P. Morgan to Enhance SME Financing

Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.

The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.

J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.

“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”

The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.

The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).

Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.

According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.

Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).

Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.

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TA Telecom Introduces AnteThink: A New AI Decision Support Tool

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**TA Telecom Introduces AnteThink: A New AI Decision Support Tool for Enhanced Decision-Making**

TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.

With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.

Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.

Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”

Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”

AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.

Key Features of AnteThink include:

1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.

2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.

3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.

TA Telecom Introduces AnteThink: A New AI Decision Support Tool for Enhanced Decision-Making

Credit: Antethink

AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.

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GoDaddy’s Global Markets VP Predicts Egypt’s E-commerce to Hit $9.88 Billion by 2028

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GoDaddy's Global Markets VP Predicts Egypt's E-commerce to Hit $9.88 Billion by 2028

Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.

Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.

In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.

The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.

Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.

As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.

The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.

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