Mitgo Group invests $20 million in its fintech arm Capy

In a significant move to expand its foothold in the fintech sector, Mitgo Group has made a substantial investment in our newly launched fintech arm, Capy.

This investment will be the initial step in a 20 million dollar investment package planned for the coming 3 years. The first investment tranche will go towards developing the initial version of the platform with a focus on early and accelerated payment solutions. 

A strategic shift towards fintech

In the first quarter of 2024, Mitgo Group announced its venture into fintech services tailored for publishers in the affiliate market, including cashback services, media buyers, loyalty programs, Buy Now Pay Later (BNPL) services, and more. This strategic shift was based on the acquisition of an embedded finance platform, aptly named Embedded. With a team boasting extensive experience in fintech, Embedded has been rebranded and relaunched as Capy under the Mitgo umbrella, which already encompasses over 15 diverse businesses.

Aiming high in the affiliate marketing space

Affiliate marketing spend reached $14.4 billion in 2023 and is projected to exceed $15.7 billion in 2024. Mitgo Group aims to capture over 7% of this transaction volume within the next three years, potentially channeling more than $1.5 billion through its network. The investment in Capy is a pivotal part of this ambitious plan, with the first solutions expected to launch in Q3 2024.

Addressing key challenges in the affiliate market

Despite their substantial revenues, publishers remain underbanked due to the inability of traditional financial institutions to fairly evaluate and serve them. This gap in the market represents billions in missed profits for financial institutions and stunted growth opportunities for publishers. Mitgo and Capy are poised to bridge this gap with innovative solutions that cater specifically to the needs of this sector.

Accelerating payment solutions

One of the primary pain points in the affiliate industry is the long wait for payments, often ranging from 60 to 120 days. Capy aims to revolutionize this with its embedded finance technology, reducing payment terms to just one day. This dramatic reduction will spur rapid growth in the partner market and significantly boost profits through accelerated capital turnover.

Building strong financial partnerships

The promising potential of Capy’s solutions has already attracted the attention of leading financial institutions. Currently, Capy is in discussions with major players in the financial industry, including banks, payment systems, and e-wallet providers. Announcements of partnerships with financial market leaders in Europe, North America, and other key regions are expected soon.

Mitgo Group’s $1 million investment in Capy signifies a bold and strategic move into the fintech space, addressing crucial challenges in the affiliate marketing industry. With the promise of accelerated payments and specialized financial solutions, Capy is set to become a key player in the sector, driving significant growth and profitability for its partners and clients.

Stay tuned for more updates as Mitgo Group and Capy continue to innovate and lead the charge in transforming the fintech landscape for the affiliate market.