Contxto – Santander Bank’s corporate venture capital (VC) arm, Santander InnoVentures led a US$5 million investment in Brazilian fintech a55. Yes, yet again there’s a loaning startup that’s raised capital. But a55 has a very specific market and a different approach when it comes time to charge borrowers.
A55’s got its eye on SaaS streams
Entrepreneurs know it’s not easy getting a bank loan to grow their business. Raising equity might not be in the cards either. For these cases, fintech a55 can make a difference.
The Brazilian startup specializes in loans for small and medium-sized businesses in the tech industry. It particularly targets SaaS businesses looking to scale. And that’s because a55 gets its money back from its borrowers’ more consistent revenue stream: subscriptions.
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a55 also gives debtors access to a platform which they can use to monitor their billing, identify delayed payments, and process payments to banks.
The startup had previously raised a seed investment for US$3 million and currently operates in Mexico and Brazil.
InnoVentures’ bets in Latin America
As individuals and companies acquire a willingness to pay for SaaS content, so grows these businesses’ potential. However, to scale, they too need financing which is where a55 comes in. And that’s also where investors saw an opportunity.
“The current crisis will accelerate shifting consumer habits to digital and subscription models,” stated Manuela Silva Martínez, Managing Patner at Santander InnoVentures.
“This will tremendously benefit software-as-a-service companies, which will need alternative financial services providers to support their growth and success. a55 is in a privileged position to support the Brazilian and Mexican companies with their financial offering, tailored to their needs and particularities, and built by entrepreneurs for entrepreneurs.”
It’s also worth noting that this is InnoVentures’ fourth contribution to a Latam startup.
Among its other portfolio companies are Mexicans Klar and ePesos, as well as Brazilian Creditas. Not-so coincidentally all are related to credit lines, as is a55.
Clearly, this VC’s bet in the region are loaning-related solutions.
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-ML
