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Written by: Guadalupe Juárez
Contxto – ADDI, the Colombian fintech offering financial solutions to consumers and businesses, recently announced a Series A financing round worth US$12.6 million. This has increased its total funding to US$16.6 million since it launched earlier this year.
Recently, ADDI announced the funding of a US$12.6 million Series A round. Angela Strange from Andreessen Horowitz, a private U.S. venture capital firm, led the financing round. Other investors include monashees+, Village Global and Sinai VC in the startup’s cap table.
Using the latest technology, ADDI is a fintech company that offers credit and banking solutions at points of sales in Colombia. With its expedited process, borrowers receive an approval within three minutes, according to the company website. Unlike other credit issuers, ADDI doesn’t charge any insurance, technology or administration fees.
Since its February, 2019 founding, ADDI has already positively impacted Colombia. Historically, only the wealthiest have been able to access credit due to high interest rates. Specifically, ADDI offers loans with annual percentages rates ranging from 19.99 to 28.90 percent – significantly lower than the national average interest rate.
“Only 14 percent of Colombians have credit cards, and even those with stable jobs and no debt still don’t consider themselves solvent,” said Santiago Suárez, co-founder and CEO of ADDI.
Today, the startup is working on improving both its partnerships and team. Therefore, the Series A will bring various benefits. These include significantly accelerating commercial growth, improving its product and providing more options to customers. Moreover, it will increase its team to support company growth with a continuous focus on the product and technology.
Within a short amount of time, ADDI has worked with around 10,000 borrowers, providing loans worth an average of US$500. As announced by Santiago Suárez, the startup will allow clients to make purchases online and in stores beginning this summer. ADDI also announced that it will have more products in the future.
Undoubtedly, startups such as ADDI are necessary for society. They provide more and better financing options that are fair, simple, and accessible to most of the population. This is especially true in Latin America where they improve the region’s financial health.
For example, ADDI approves credit for borrowers at the moment of purchase. Layaway and credit plans already exist in Colombia, but oftentimes consumers have three people vouch for them before stores offer credits or layaway plans. Even more, customers often have to wait for the approval. That’s not the case with ADDI.
As part of this financial round, the CEO of ADDI announced that both the head of the financing Angela Strange from Andreessen Horowitz and Marcelo Lima from Monashees will join the board of ADDI to strengthen the relationship.
All the while, ADDI seeks to grow, improve and continue bringing banking and credit solutions to Latin America through technological means. Currently, ADDI has 40 employees on its staff. Moving forward, it would like to introduce its lending platform to more e-commerce and physical retailers.