Colombian fintech Avista raised $22.5 million in debt to spice up lending to the aged in South America.
This month, the fintech – one of many few completely centered on the “silver economic system” – introduced it had secured a mortgage facility from Accial Capital, a fund usually centered on fintech lenders in rising markets.
Based in 2019, Avista caters to purchasers in rural areas and smaller-sized cities in Colombia. They declare they market loans to residents with out formal banking information and Colombians with excellent debt at banking establishments.
The corporate mitigates threat by making certain the borrower collects a pension or a month-to-month wage. Repayments might be deducted from the pension allowance or payroll. Typically, payroll lending constitutes a safer lending section when in comparison with unsecured loans similar to bank cards.
Develop the portfolio
The corporate has mentioned that the brand new funding would enable it to broaden its portfolio, with the purpose of $100 million in loans this yr. Most of them ought to go to the retiree inhabitants, the corporate acknowledged.
“This debt financing for $22.5 million will assist us in our mission to enhance the monetary inclusion of the aged, bringing liquidity to 1000’s of Colombian households,” Martin Restrepo, co-founder at Avista, mentioned.
Avista lends to clients of as much as 84 years of age, with loans starting from the equal in pesos of $200 to $30,000. However its clientele goes past the so-called silver economic system. It additionally lends to law enforcement officials and academics.
“Avista’s strategy to extending credit score to a typically ignored section deepens monetary inclusion throughout Colombia,” Accial Capital mentioned on social media.
Accial isn’t any stranger to LatAm fintechs
The fund isn’t any stranger to Latin American lending fintechs. Lately, it has additionally introduced a $90 million debt financing line for Clara, a Mexican fintech that targets small and medium-sized companies within the nation.
Over the previous two years, Accial has invested greater than $32.5 million in debt services in Avista, together with this just lately introduced debt issuance, co-founder Restrepo instructed Forbes. Avista stories it has tripled its portfolio from $55 million to $160 million up to now two years. The corporate hopes to finish 2023 with a portfolio of $210 million.
Colombia’s fintech ecosystem has been rising persistently up to now few years. Based on the Inter-American Improvement Financial institution, it’s the third-largest ecosystem within the area. It accounts for 11% of all monetary expertise firms within the space, with 279. That’s up from simply 84 in 2017.
