MEXICO CITY, Sept 29 (Reuters) - Mexican financial technology firm Konfio said on Wednesday that its valuation has hit $1.3 billion after a fresh investment round, pushing the SoftBank-backed company into the elite "unicorn" category for startups worth more than $1 billion.

Used-car platform Kavak https://www.reuters.com/world/americas/exclusive-mexicos-kavak-says-new-funds-make-it-second-most-valuable-latam-2021-09-22 became the first known unicorn in Mexico last year, and was followed by cryptocurrency platform Bitso and payments company Clip.

Konfio, which helps small businesses secure loans, said in a statement its latest funding totaled $235 million and the funds will be used to broaden its reach in Latin America's second-largest economy.

The firm said it will also continue looking for acquisition and integration opportunities.

The company, which started operations in 2014, said the funding included a $110 million extension to its Series E capital raise, which had already secured $125 million.

Tarsadia Capital and QED Investors led the latest part of the Series E round, along with Konfio's existing shareholders SoftBank, VEF, Kaszek Ventures, IFC and Lightrock, the company said. (Reporting by Sharay Angulo Editing by Marguerita Choy)