The Mitgo Group, a prominent player in the MarTech sector, has invested the first round of capital in Capy, a newly established fintech company.
This investment is the first of a $20 million investment package that will be made over the next three years.
The initial investment tranche will be utilized to develop the platform’s first version, with a focus on providing fast and convenient payment methods.
The Mitgo Group first announced the debut of fintech services in Q1 2024 for affiliate market publishers. These services included media buyers, cashback services, loyalty programmes, BNPL services, and many more.
The recently purchased embedded financial platform Embedded, whose staff has substantial fintech experience, formed the basis for the new approach that was intended to be launched. The company has gotten extensive backing and more cash since the takeover. Within Mitgo’s global holding company, which now oversees more than 15 enterprises, it has been relaunched as Capy.
Conservative projections indicate that affiliate marketing spending will surpass $15.7 billion this year, having already surpassed $14.4 billion in 2023. With the rise of the industry, Mitgo aims to handle over 7% of the total transaction volume over the next three years, or over $1.5 billion.
The goal of the investment in Capy is to quickly realise this ambition. The third quarter of 2024 will see the release of the initial solutions.
According to Neha Kulwal, Managing Director at Mitgo, India and APAC, “The first version of the service will focus on early payout products, one of the biggest growth points in the affiliate industry right now. Despite substantial and ever-growing revenues publishers remain in the underbanked zone, as classic financial institutions lack the expertise to fairly score such customers and can’t offer them a proper variety of products. Financial institutions are missing out on billions of dollars in profits on this customer segment while publishers are unfairly limited in growth acceleration opportunities. Mitgo and Capy will be able to solve both problems through their solutions and mediator role.”
The affiliate industry is now experiencing long payment wait times, so naturally, finding a solution to this problem will take precedence over others. With the help of Mitgo’s extensive experience in this industry and Capy’s range of solutions based on embedded finance technology, payment times can be shortened from the industry average of 60-120 days to only one day. Because of the faster capital turnover caused by the implementation of these technologies, the partner market will increase explosively and the participants’ profits will grow multiple times.