Colombia-based, short-term lending startup RapiCredit is in talks with business groups in Brazil and the Caribbean about expanding into those regions, The Rio Times reported Wednesday (March 2).
“The company has proven that it is competitive enough to enter new markets,” RapiCredit CEO Daniel Materón said in the report. “In Colombia, the results are really satisfactory. We are the fifth-largest credit intermediary in the country, and we have doubled the number of loans in less than a year. These are the reasons why foreign markets are interested in us.”
See also: How Colombia Can Provide a Blueprint for Latin American Digital Payments Growth
RapiCredit recently raised $3 million for working capital from a Japanese fund. The startup also anticipates that it will extend close to 880,000 loans totaling $250 billion this year, according to the report.
Latin American FinTechs closed 182 funding rounds in 2021 that raised $7.5 million, according to Latam FinTech Hub.
Launched in 2013 by Materón, RapiCredit offers immediate personal loans to help individuals microbusinesses and small- to medium-sized businesses (SMBs) cover unexpected expenses. The company strives to develop products and services that promote financial inclusion. Loan values are based on the ability to pay.
Read also: 94% of Mexican Consumers Use Mobile Banking
The startup focuses on the people in the region that are underserved. To apply for a loan, an applicant must have an active bank account, email address, and cellphone number. The entire process is done online.
Some 50% of consumers surveyed in Argentina, Brazil, Colombia and Mexico have made social commerce purchases, according to a PYMNTS report last week. The findings show that smartphones will be a key component of the Latin American digital banking ecosystem, especially as social commerce starts to rise in the region.
See also: Colombian FinTech Bold Raises $55M
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