Manolo Atala On Building And Exiting Several Companies And Now Raising ~$130 Million To Offer Revenue-Based Financing to SMEs

In the ever-evolving world of entrepreneurship, few stories stand out quite like Manolo Atala’s. A founder from Mexico with an unconventional path, Manolo has navigated industries with precision, leveraging storytelling, trust, and a deep understanding of numbers to build and scale companies.

Manolo’s latest venture, Fairplay, has attracted funding from top-tier investors like Carlos Martin, Carlos Salinas, Nut VC, and DILA Capital.

In this episode, you will learn:

• A compelling narrative and a strong reputation are crucial for fundraising, hiring, and leadership.
• Manolo’s early entrepreneurial setbacks taught him resilience and the importance of iterating until success.
• Mastering financial models and assumptions is key for founders to attract investment and scale effectively.
• The best startups are built by teams with diverse skill sets and mutual trust rather than solo founders.
• Manolo transitioned across industries, leveraging lessons from music, corporate roles, and startups to build successful businesses.
• Understanding the differences between equity and debt financing helped Fairplay scale while mitigating financial risks.
• Entrepreneurs must balance big-picture thinking with meticulous execution to turn ideas into scalable businesses.

 

SUBSCRIBE ON:

For a winning deck, see the commentary on a pitch deck from an Uber competitor that has raised over $400M (see it here). 

Remember to unlock for free the pitch deck template that founders worldwide are using to raise millions below.

About Manolo Atala:

Manolo Atala has held a variety of roles in their professional career. In 2007, they began as an Account Executive at CIE. In 2009, they moved to Yahoo as a Sales Manager. In 2010, they became the CEO North Latam (Mexico & Caribbean) and CEO Groupon Mexico at Groupon.

In 2013, Manolo founded Becomsulting and joined the Board of Advisors at SinDelantal.mx. In 2015, they became a Co-Founder at Parkiller and Managing Director Mexico at Cornershop.

In 2016, Manolo Co-Founded Pulpomatic. In 2018, they became a Limited Partner and COO at Mountain Nazca. Most recently, in 2019, Manolo became the Co-founder & CEO of Fairplay (Freedom to Scale).

Manolo Atala attended Universidad Anáhuac from 1998 to 2000, where they studied International Business. Manolo, but did not complete their degree.

Connect with Manolo Atala:

• LinkedIn
• Crunchbase
• TheOrg
• The Network

Read the Full Transcription of the Interview:

Alejandro Cremades: Alrighty, hello everyone, and welcome to the DealMaker Show. Today, we have a really awesome founder—a founder from Mexico, actually—who has done a lot of great things. He has been an angel investor for quite some time, and now he’s riding this rocket ship that we’re going to be talking about.

Alejandro Cremades: Brace yourself, because we’re going to discuss storytelling, mastering your numbers, and entering a space where you have no prior experience while maintaining humility.

Alejandro Cremades: We have an incredible story ahead of us. So, without further ado, let’s welcome our guest today, Manolo Atala. Welcome to the show!

Manolo Atala: Hello, man. Thank you very much, Alex. It’s a pleasure and an honor to be here. Thank you.

Alejandro Cremades: The honor is ours! Walk us through your journey—because you were born and raised in Mexico. What was life like growing up for you?

Manolo Atala: Well, it was pretty regular, pretty common. Actually, I really love Mexico City. I was born and raised here and have never lived in any other city or country, even though I’ve traveled a lot in the last 20 years.

Manolo Atala: But I’ve always been based here.

Alejandro Cremades: The ecosystem in Mexico is just incredible. I know that for you, one thing that has helped as a founder—and perhaps in helping other founders in the region—is storytelling.

Alejandro Cremades: At what point did you realize the importance of storytelling? And how do you think it combines with trust to create something magical?

Manolo Atala: That’s an amazing question. Actually, for me, storytelling is extremely important throughout your career. You don’t need to be a founder to benefit from it. Storytelling is crucial in many areas—whether you’re part of a corporate business, a big corporation, or any other role where you need to communicate effectively.

Manolo Atala: For me, knowing how to effectively sell yourself and communicate your goals while aligning your words with your actions builds trust.

Manolo Atala: You need to be very careful with what you say and do because trust is the most important asset you can have.

Manolo Atala: As an entrepreneur, you need to maintain a strong reputation in the market. That’s how you raise funds and attract people who are willing to jump into your company and follow your vision. They trust you and your reputation. The storytelling and narrative you present to the market, both publicly and privately, are incredibly important.

Manolo Atala: So, never underestimate that.

Alejandro Cremades: I hear you on that. Without trust, nothing else matters, right? Trust is the fundamental building block of any relationship. Now, in your case, you were 21 when the venture world started knocking on your door.

Alejandro Cremades: How did that happen? That’s quite early.

Manolo Atala: Oh, you mean 2021—the party year for everyone?

Alejandro Cremades: No, not the party year! That was quite a party year. I mean when you were 21 years old, and it was time for you to take ownership of your own future.

Manolo Atala: Oh, got it!

Manolo Atala: Yes, that was the first time I started my own business. It was an advertising business that I had seen in the UK back in 2000.

Manolo Atala: Basically, I jumped straight from studying to running a business. I was a university dropout—or rather, to be extremely clear, I wasn’t a dropout. They actually expelled me from university for bad behavior. And I decided, “Okay, if I can’t study because I was expelled, then I’m going to run a business.” So, I started my first venture.

Manolo Atala: That moment activated something in my mind. I realized that I could do this. Even though it wasn’t a great business and I had to shut it down, it sparked something in me. I told myself, “I can do this. I can keep trying until I succeed.” That was a pivotal moment in my career.

Alejandro Cremades: And you did it multiple times before fully diving into music. Right before that, you were also involved in the creative side with a video production company, which might not seem as glamorous as what you’re doing today.

Alejandro Cremades: But full-time music—this reminds me of what Steve Jobs said about hiring engineers with a music background. He believed it gave them an edge. Tell us about this music chapter in your life and how it shaped your perspective.

Manolo Atala: That stage of my life was amazing because it gave me the mental space to think about what I wanted for the future.

Manolo Atala: At the same time, it shaped my thinking mathematically. It’s interesting because music and math are deeply connected. I love numbers, and I love crunching numbers. To learn music as fast as I needed—since I joined a band that already had established songs—I had to pick up an instrument extremely quickly.

Manolo Atala: That experience shaped my mind differently, making me more creative and analytical. Now, 15 years later, I can see how music influenced my ability to work with numbers and structure business strategies in my head.

Alejandro Cremades: One incredible thing is that you got a taste of entrepreneurship—you had control over your own destiny. But after music, you made a surprising switch to the corporate world. That’s quite the transition!

Manolo Atala: I needed cash. I needed a paycheck.

Manolo Atala: It was funny because, as a full-time musician, I remember going from bar to bar looking for jobs—anything from working the door to waiting tables. I just needed some cash to survive.

Manolo Atala: But I quickly realized this was unsustainable. My personality drives me to do more—I’m a very ambitious person. I had to ask myself: “Is this sustainable for me, long-term?”

Manolo Atala: That’s when I decided to enter the corporate world to maximize my skill set. Even though I didn’t have a formal degree, I needed a steady income to support my ambitions. That was
my mindset back in 2003 or 2004.

Alejandro Cremades: Well, one thing led to another, and you ended up launching Groupon in Mexico. That experience gave you a superpower—understanding people’s motivations and how to use that knowledge to hire the best talent. Tell us about launching Groupon, that journey, and what you learned about people along the way.

Manolo Atala: Absolutely. After my corporate stint, I worked in advertising for the largest entertainment company in Latin America, and then I joined Yahoo’s sales team.

Manolo Atala: Okay, so after my time in entertainment, I moved to Yahoo’s sales team. In 2008, I was a sales manager leading a small, efficient team.

Manolo Atala: Then, in 2010, I launched Groupon in Mexico, and my hiring needs skyrocketed from managing two people to building a team of 150.

Manolo Atala: I had to learn how to hire effectively because no one builds a successful company alone. Some people think they can do everything themselves and just delegate operational tasks to second-tier employees, but that’s not how it works. You need a talented team at every level to succeed.

Manolo Atala: At Groupon, I learned to navigate different personalities, lead teams, and sell my vision to employees. Leadership is about understanding people’s motivations and behaviors. That’s what helped me grow Groupon into a $30 million revenue company in its first year.

Alejandro Cremades: That’s incredible!

Manolo Atala: How about we design the business model and then go out and look for a couple of founders who can execute on this idea?

Manolo Atala: We give them the resources to do that—not as a company builder, but with the idea and $1 million as a seed round, right? That way, we ensure that we invest exactly in our thesis.

Manolo Atala: So that worked. The first business model we started to evaluate or think about was revenue-based financing for e-commerce companies.

Alejandro Cremades: You—

Manolo Atala: And we fell in love with that business model. Hector and I designed the first financials and business model. Then, when we decided to look for a founder to execute this, we found Andrew, my co-founder.

Manolo Atala: He said, “Yeah, I’m all in. I really understand this business model. I really like it. I want to work with you guys as an investor.” A few days later, I spoke to Andrew because we’ve known each other since we were about 11 years old.

Alejandro Cremades: Thank you.

Manolo Atala: Hector, Nazca, and I have known each other since we were kids. I told Andrew, “Hey, man, I might be willing to leave Nazca. If you’re willing to do this with me as co-founders, that would be amazing.” He responded, “Of course.”

Manolo Atala: Then we spoke to Hector, and he said, “Even better. Who better to do this than you, since you designed all these business models?” And the rest is history. We started in 2019 as Fairplay, executing our first deals.

Alejandro Cremades: For the listeners, what ended up being Fairplay’s business model? How are you guys making money?

Manolo Atala: We started as revenue-based financing for direct-to-consumer companies in e-commerce, providing them with working capital for their marketing campaigns—just that. It was super niche.

Manolo Atala: Then we realized that wasn’t enough. If you spend X amount on marketing but don’t have the necessary inventory to sell more, it makes no sense.

Manolo Atala: So we began providing working capital for inventory, then logistics. We then expanded the model to marketplace sellers like MercadoLibre, Amazon, and Walmart sellers.

Manolo Atala: Eventually, we saw that retail is a much larger market than e-commerce. In fact, e-commerce is just a channel within retail. So we expanded into retail as a whole.

Manolo Atala: Five years later, we were servicing SMEs in Mexico. We went from a very niche financial product to a broader market and industry.

Manolo Atala: Now, we offer technology and our core lending products for SMEs in Mexico. Our team consists of 89 full-time employees.

Manolo Atala: We’ve originated more than $330–$340 million so far, and we’re in the process of scaling and entering a growth stage.

Manolo Atala: In 2023 and 2024, we became a $12 million revenue company, and we’re continuing to scale and grow.

Alejandro Cremades: That’s amazing.

Manolo Atala: Yeah, yeah.

Alejandro Cremades: One thing that stands out is that this was an industry you knew nothing about beforehand. You just grabbed it by the horns. For listeners, how do you approach an industry you have no prior knowledge of?

Manolo Atala: That’s an amazing question, and it’s very important. Throughout Fairplay’s journey, this has been key. There are two ways to do it. You can enter an industry completely naive, and that can actually be a good thing.

Manolo Atala: If you enter with a naive mindset, you don’t have the bad habits, constraints, or negative industry norms that others do. You come in with a clear mind.

Alejandro Cremades: We all understand Spanglish well.

Manolo Atala: Exactly! I think everyone understood my bad English. If you enter an industry naive, it can help because you don’t carry its baggage.

Manolo Atala: But if you become arrogant and think you can disrupt an entire industry alone—saying, “I’m going to eliminate banks, financial institutions, and regulators”—then you’re making a big mistake.

Manolo Atala: The banking system has worked for hundreds of years. If you try to fight the industry, it will hit back hard.

Alejandro Cremades: Thank you.

Manolo Atala: We took some hits. For example, we didn’t know much about FX hedging for USD-based debt facilities or strategically measuring the borrowing base. Today, there are tools like VAS for that, but back then, we had to learn the hard way.

Manolo Atala: We were humble enough to survive but also naive enough to create a product that SMEs truly needed. That balance created what we have today.

Manolo Atala: If you’re 100% naive, you’re foolish. If you’re 100% arrogant, you’re foolish as well. You need to find a balance.

Alejandro Cremades: As part of your operation, you raised both equity and debt. Walk us through that journey. How much have you raised on both sides, and what’s the difference between raising equity versus debt?

Manolo Atala: That’s a great question, and I have a funny story about it.

Manolo Atala: We raised a $5 million seed round in 2019 before the hype, with just a PowerPoint. Thanks to QED and Nazca for pushing us forward. Then in 2021, we raised a $13 million Series A, led by Dila Capital, with participation from Kayak Ventures (Chile), Elevar Equity (India & LatAm), and SpeedInvest (Austria), alongside QED and Nazca.

Manolo Atala: Then we raised another $11–$12 million from internal investors.

Manolo Atala: On the debt side, we secured a $20 million facility from Architect Capital in San Francisco, led by James Sagan—a great guy and one of the first to provide credit in LatAm from a U.S.-based fund.

Manolo Atala: Later, we refinanced with a $100 million facility from CIM (San Francisco & NY). Then we refinanced again with BBVA Spark in Mexico, switching to local currency to avoid hedging nightmares in 2023 and 2024.

Manolo Atala: Raising equity versus debt requires different approaches. I once pitched a German development bank, assuming they were the debt team. I focused on risk mitigation, underwriting, data extraction, legal structuring—everything boring.

Manolo Atala: Then someone mentioned an NDA, and they said, “We don’t sign NDAs for these deals.” That’s when I realized they were the equity team.

Manolo Atala: I asked, “Guys, I’m sorry. I thought you were the debt team.” They said, “No, we invest in growth-stage fintech in emerging markets.”

Manolo Atala: I said, “Can you give me seven minutes to pitch you accurately?” They laughed and said, “Go ahead.”

Manolo Atala: My entire demeanor changed. I pitched the vision, the exciting parts of the business. They loved it. And now, they might participate in one of our rounds.

Manolo Atala: Just by adjusting the narrative and storytelling, I shifted from debt to equity mode. It’s a completely different game.

Alejandro Cremades: Let’s double-click on that vision. If Fairplay’s vision were fully realized, what would the world look like?

Manolo Atala: Fairplay would be the leading financial institution for SMEs in Mexico, deeply serving them with multiple financial products and solving financial problems at scale.

Alejandro Cremades: Beautiful. Now, looking back—if you could go back in time and give 21-year-old Manolo one piece of advice about launching a business, what would it be and why?

Manolo Atala: Wow. First, I’d say: “Don’t be reckless.”

Manolo Atala: I was reckless. I didn’t take my life seriously. I’d tell myself, “Take your life and career more seriously.”

Manolo Atala: I regret not doing that earlier. And the second piece of advice…
.
Manolo Atala: And the second one, it’s very early to partner with people who are way smarter than you.

Alejandro Cremades: I love that.

Manolo Atala: That would be two pieces of advice that I would give the 21-year-old Manolo. Yeah.

Alejandro Cremades: I love that. Well, Manolo, for the people listening who would love to reach out and say hi, what is the best way for them to do so?

Manolo Atala: Don’t do it, man. I have a lot of work to do. Please don’t. Ah… So no, no, no. I always say that as a joke, but jokes aside, I don’t know why, but my phone number leaked on a database or something.

Manolo Atala: And I receive tons of calls—people pitching me all sorts of things.

Alejandro Cremades: Oh, man. Yeah…

Manolo Atala: I also receive tons of messages in my LinkedIn inbox. And I’m trying to work. I’m more than happy to help other entrepreneurs—whether they are younger or older, I don’t care.

Manolo Atala: I’m happy to walk them through this entrepreneurship life. But if I receive a warm intro from a VC fund or another founder, it’s way easier for me.

Manolo Atala: That way, I can know exactly what you want and how I can be helpful. If you are extremely clear with me about what you need help with, it goes way better for me. So if you can ask for an introduction or something, that would be way better for me. If you just cold-message me on LinkedIn, I probably won’t answer back.

Manolo Atala: I’m so sorry about that.

Alejandro Cremades: Being intentional. And obviously, for the people listening, just make sure you don’t mention the database if you decide to call directly.

Manolo Atala: Exactly. But please don’t.

Alejandro Cremades: I love it.

Manolo Atala: Please don’t.

Alejandro Cremades: I love it. Hey, Manolo, it’s been such an honor to have you with us. Thank you so much for being on the DealMaker Show with us today.

Manolo Atala: Man, my pleasure. Actually, I’ve been a follower of your podcast—and you specifically—for years now. I admire what you’re doing. Thank you very much. It’s an honor for me to be here.

Manolo Atala: And thank you.

*****

If you like the show, make sure that you hit that subscribe button. If you can leave a review as well, that would be fantastic. And if you got any value either from this episode or from the show itself, share it with a friend. Perhaps they will also appreciate it. Also, remember, if you need any help, whether it is with your fundraising efforts or with selling your business, you can reach me at al*******@pa**************.com

 

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | TuneIn | RSS | More