Latin American buy now, pay later (BNPL) company Addi has raised new equity funding of $75 million, bringing the firm’s total 90-day funding to $140 million.
The company — with operations in Bogota and Sao Paulo — announced the new funding Wednesday (Sept. 8), saying the latest round has tripled its valuation, which Addi put in “the hundreds of millions.”
Addi says it will use the funds to scale its operations in Colombia and Brazil, while also enhancing its BNPL offerings, giving customers and merchants new ways to pay.
“In 2020, Latin America led the world in e-commerce sales growth,” Addi said in its news release. “With e-commerce transactions in the region projected to exceed $160 billion by 2024, the market is well poised for online and digital BNPL purchases to explode in popularity.”
The company says research shows this trend will contribute to a worldwide BNPL spend of nearly $1 trillion by 2026.
Our own research has shown the rising importance of BNPL. A recent PYMNTS survey of omnichannel and brick-and-mortar small to medium-sized businesses found that most believe BNPL plays a significant role in driving sales.
Sixty-one percent of the business owners polled said their customers are willing to switch to merchants that offer BNPL solutions, while 57 percent said BNPL will account for an increasing share of sales.
According to 61 percent of the respondents, BNPL helps close sales that wouldn’t have otherwise happened, while 70 percent of omnichannel merchants and 40 percent of offline-only merchants surveyed said consumers are willing to switch to merchants that offer BNPL.
As BNPL has grown, so has Addi, which says the volume of the payments it powers has increased by 13 times since the start of 2021.
The company has worked with a number of online retailers including Arturo Calle, Keep Running, Claro, Mario Hernandez, with thousands of consumers making BNPL purchases through Addi each day.
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