Kredito takes in $6 million as commercial lender LatAm plans international expansion – TechCrunch
More than a year after securing $4 million in pre-seed funding, Kredito, a Chile-based business lending startup, is back with another $6 million in new funding.
The company launched to the public in 2021 and partners with financial institutions to help small businesses manage expenses, access unsecured digital loans, open a bank account, and get a business credit card.
When we introduced Kredito last year, co-founder and CEO Sebastian Robles told TechCrunch that business credit doesn’t automatically come with an account, leaving business owners to use credit cards. personal.
“Everyone wants to sell online, so e-commerce capabilities are key,” he recently told TechCrunch. “Most of our customers are moving online, but what has happened is that banks are more restricted with their products, making it harder for the unbanked or underbanked to access decent financial services or sometimes even a bank account.”
Instead, Kredito assumes that risk by using a proprietary algorithm and alternative data to assess credit risk more inclusively than traditional banks, and in real time, Robles said. She also created products with low requirements to reduce the cost of acquisition and gathered data from customers on how best to help them access financial products. For example, the corporate account and card can be used by anyone, while the loan product is available to those who qualify and share data with Kredito, Robles said.
Including the new equity financing round — Robles is still finalizing a debt round — the company has so far raised $11.5 million in equity and debt. The new capital came from a group of angel investors and family offices, including Cornershop by Uber founders Oskar Hjertonsson and Daniel Undurraga, and various partners at property developer Patio.
Robles wasn’t necessarily planning to seek new capital so soon, but said Kredito was growing faster than expected. He ran the business very lean, but needed to bolster the small team to accommodate growth.
The company has around 100,000 accounts and around 5,000 active users and is seeing 90% revenue growth month over month, he said. It is focused on sustaining this growth through next year as it continues to open thousands of new accounts each month.
Robles intends to use the new capital to expand into new countries and consolidate its growth in Chile. Exporting Kredito’s product — making sure what it does in Chile can do in other countries — will be key, he said. Thus, the company will first work on its underwriting by accessing data in several countries and by replicating its strategies.
“Internationalization is the main objective,” he added. “We have a lot of work to do. We have made a lot of progress in underwriting and lending, and now we have to do the same with other products. Locally, we will focus on growth. We already have a product market fit and a lot of traction, and now we want to grow further.”