Loto LatAm, a Colombian fintech specialized in expense and incentive management solutions for SMEs, closed a US$1 million pre-seed financing round. The deal involved the participation of venture capital funds such as Fen Ventures, Crestone VC, QAPU Ventures and Desygn Capital.
The startup, founded in May 2024 by Daniel Camacho and Pedro Ignacio Morales, develops a technological platform that seeks to address the high rate of closure of small and medium-sized companies in the region, which is around 70% in the first four years of operation, often associated with limited access to credit and the lack of technological tools for financial control.
The capital raised will be used mainly to accelerate its growth in the Colombian market, where the company plans to reach 500 users by the end of 2025. Since its launch, Loto LatAm has added more than 100 clients, including companies such as Amarilo, Stilotex and KTM Powershop.
Spending management and corporate incentives
Data shows that the Expense Management market in Latin America is growing at double digits, projected to rise from US$487 million in 2021 to US$711 million by 2025, with an annual growth rate close to 10%. In Brazil alone, this segment is expected to climb from $188 million to $275 million in the same period.
“In expense management, we go further than any competitor, because we do not stop at reconciliation, but we make sure that the expense is recorded and legalized in the accounting software,” said Daniel Camacho, CEO of the company.
For his part, Javier Pedrals, principal at Fen Ventures, added: “Loto combines an exceptionally smart and committed team with a solution that addresses a real pain in the market. Their initial traction demonstrates how clear and urgent the need they are solving was.”
Additionally, the fintech confirmed that it plans to begin expansion into a second market in the region in 2026, with the goal of consolidating its position as a major player in financial management for SMEs in Latin America.
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