Latin American buy now, pay later (BNPL) company Addi has generated $200 million of debt and equity, pushing its valuation to more than $700 million, according to a Monday (Dec. 20) report from Bloomberg.
Addi netted $80 million in equity from GIC Private Ltd., Softbank Group Corp.’s Latin American fund, among other investors. In addition, the company received $125 million in debt financing, primarily from Goldman Sachs Group.
Monday’s announcement follows a September funding round which generated $75 million and a $65 million fundraise three months prior, according to PYMNTS. At the time, Addi said the funds would be used to help scale its operations in Colombia and Brazil and improve its BNPL offerings.
As the popularity of BNPL continues to grow, so too does Addi’s transaction volume. In 2021, the volume of the company’s payments increased 13 times, PYMNTS reports. Addi has worked with numerous online retailers, including Arturo Calle, Keep Running, Claro and Mario Hernandez.
Related: Latin American BNPL Firm Addi Lands $75M in New Funding
Addi is benefiting from an influx of venture capital in Latin America. Yearly spending on the region’s startups surpassed $10 billion, according to the Association for Private Capital Investment in Latin America.
Addi recently expanded to Brazil, intends to open an office in Mexico in 2022 and is looking to broaden its reach to other markets, Bloomberg reports.
BNPL has been around since 2014 — with Afterpay’s debut — but has morphed into a $100 billion business worldwide since the pandemic, according to PYMNTS.
U.S. consumers, especially those living paycheck-to-paycheck, have a growing interest in BNPL options, according to “The Next BNPL Horizon Report,” a PYMNTS and Amazon Web Services collaboration. Based on PYMNTS’ data, slightly more than 11% of the entire U.S. population — or 29 million people — in made at least one BNPL purchase within the last year.
See more: 4 Things About BNPL: Navigating an Increasingly Complex Landscape
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