Background and Importance of Construction SMEs in Mexico
In Mexico, over 95% of construction companies are micro, small, or medium-sized enterprises (SMEs), according to INEGI records. These businesses form the operational core of the sector, accounting for nearly 70% of employment and executing most residential and minor construction projects in the country. Their role is crucial for maintaining an active production chain, particularly in regions where construction serves as a local economic driver.
Challenges Faced by Construction SMEs
Despite their strategic importance, less than 20% of these SMEs have access to formal credit. This forces them to operate with limited capital, work advances, or informal schemes, which are challenging to sustain during economic downturns. This lack of financing restricts their growth, leads to work stoppages, and makes it difficult for them to take advantage of existing incentives for social housing or participate in financeable projects.
Mango: A Mexican Startup Transforming Construction SME Financing
Amidst this context, Mango, a Mexican startup, is revolutionizing how construction SMEs access financing and manage purchases. Sergio Angelini, Mango’s director and co-founder, explains: “Thousands of small Mexican construction companies face the same challenge every two weeks: paying wages and materials without stopping work. Mango was created so that this pause would never again mean losing a project.”
Mango’s Solution for Construction SMEs
Mango’s platform enables SMEs to acquire materials with 0% credit, centralize costs, and convert each transaction into auditable data. This is a critical component for accessing formal credit, as banks and housing institutions now demand greater traceability before granting loans. Most small construction companies operate with scattered, manual records or limited verification, which excludes them from the financial system.
By standardizing, verifying, and tracking each purchase, Mango’s operation generates reliable financial histories, reduces operational risks, and demonstrates solvency to institutions that previously deemed them non-bankable. With this visibility, SMEs can access better credit conditions, participate in larger projects, and protect themselves against sector volatility cycles.
Strategic Timing and Future Expansion
Mango’s solution comes at a crucial time, as government incentives for social housing and the gradual return of bank credit have made financial traceability a central requirement for SMEs to prove solvency and operational capacity. Mango collects sector-specific data, generates its own predictive models, and connects constructors with distributors.
Currently generating $1 million in annual revenue, Mango plans to expand to other Latin American regions, with Colombia as its first destination.
Key Questions and Answers
- What percentage of construction companies in Mexico are SMEs? Over 95% of construction companies in Mexico are micro, small, or medium-sized enterprises (SMEs).
- What challenges do these SMEs face? Limited access to formal credit, work stoppages, and difficulty taking advantage of incentives for social housing or financeable projects.
- How does Mango help construction SMEs? Mango’s platform offers 0% credit for material purchases, centralizes costs, and converts transactions into auditable data, enabling SMEs to access better credit conditions and participate in larger projects.
- Why is financial traceability important for construction SMEs? Financial traceability is crucial for SMEs to prove solvency and operational capacity, as banks and housing institutions now demand greater transparency before granting loans.
- Where is Mango expanding to next? Mango plans to expand to other Latin American regions, with Colombia as its first destination after achieving $1 million in annual revenue.
