Tappoyo: The fintech that empowers women entrepreneurs in Peru

Tappoyo, a social impact fintech, has emerged as a beacon of hope for many women in vulnerable situations in Peru. Its mission, in the words of Rennzo Contreras, co-founder and Commercial Director of the company, is to "turn invisible women into unstoppable entrepreneurs." This initiative stems from a personal experience, inspired by his mother, who, despite being a tenacious entrepreneur, was unable to access financing opportunities due to the informality of her business. Since its founding six years ago, Tappoyo has expanded its reach to six regions of the country, notably Lima and Callao, and extending to Ucayali, Huánuco, San Martín, Pasco, Junín, and Cajamarca. Through its innovative platform, the fintech seeks to provide financing solutions to women in sectors C, D, and E, facilitating the acquisition of group loans in a quick and efficient manner. Contreras points out that this approach is not only designed to assist those lacking access to credit but also aims to create a tangible impact in their lives. Tappoyo's methodology focuses on forming groups of eight to 15 people who know each other and share the same community. This collective credit system allows women to access financing in record time. While other institutions may take between seven and 14 business days to process a request, Tappoyo reduces this time to just five days, with hopes of cutting it down to just two days in the future. The fintech presents itself as an alternative to informal lenders, who cater to a large part of the Peruvian population and charge exorbitant interest rates ranging from 1,000% to 1,400%. These abusive loans create a cycle of unsustainable debt and abusive collection practices that perpetuate poverty. In contrast, Tappoyo has benefited over 4,000 women in just two years, with a remarkable 92% reporting improvements in their quality of life after receiving financial support. Tappoyo's model not only focuses on financing but also on empowering women through financial knowledge. Through its direct marketing network, collaborators have experienced a 30% increase in their income, enabling them not only to survive but also to thrive. Contreras emphasizes that their goal is not for them to work full-time for the company, but for this additional income to provide them with relief in their living conditions. Despite the growing acceptance of its model, Tappoyo faces challenges. The current delinquency rate stands at 9.5%, which Contreras considers a competitive figure compared to other entities that report delinquency rates of up to 15%. This efficiency in risk management is crucial for the sustainability of the business model and for maintaining the trust of both beneficiaries and investors. The recent recognition Tappoyo received by winning the Business Creativity Award in two categories reinforces its position in the market. Contreras highlights that this award not only validates their commitment to social impact but also their ability to be a profitable company that innovates in a sector as complex as finance. The key, he asserts, lies in a passionate team that understands the importance of generating a positive impact on people's lives. Looking to the future, Tappoyo plans to consolidate its presence in the Peruvian market, aiming to impact 4,500 women in 2024. The company is in a phase of strategic redesign to establish a robust financial foundation and technological support that will allow it to scale its operations. In this context, talent acquisition becomes a fundamental pillar for its growth. Additionally, the horizon expands with plans for internationalization. Colombia is poised to be the first country where Tappoyo seeks to expand, given that the cultural and social realities are similar to those of Peru. Contreras notes that in the neighboring country, there is no collective financing system, representing a unique opportunity to implement its model and offer solutions to a market that is still to be explored. In summary, Tappoyo stands as an example of how innovation in the financial sector can be a powerful tool for transforming lives. With its focus on empowering women and providing them with the necessary tools to become successful entrepreneurs, the fintech is not only changing individual realities but also challenging the traditional structures of the financial system in Peru and beyond.