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Contxto – Santander Bank’s company enterprise capital (VC) arm, Santander InnoVentures led a US$5 million funding in Brazilian fintech a55. Sure, but once more there’s a loaning startup that’s raised capital. However a55 has a very particular market and a special method when it comes time to cost debtors.
A55’s bought its eye on SaaS streams
Entrepreneurs comprehend it’s not straightforward getting a bank loan to develop their enterprise. Elevating fairness may not be within the playing cards both. For these instances, fintech a55 could make a distinction.
The Brazilian startup focuses on loans for small and medium-sized companies within the tech business. It significantly targets SaaS companies seeking to scale. And that’s as a result of a55 will get its a refund from its debtors’ extra constant income stream: subscriptions.
a55 additionally provides debtors entry to a platform which they will use to observe their billing, establish delayed funds, and course of funds to banks.
The startup had beforehand raised a seed funding for US$three million and at the moment operates in Mexico and Brazil.
InnoVentures’ bets in Latin America
As people and corporations purchase a willingness to pay for SaaS content material, so grows these companies’ potential. Nevertheless, to scale, they too want financing which is the place a55 is available in. And that’s additionally the place traders noticed a chance.
“The current crisis will accelerate shifting consumer habits to digital and subscription models,” said Manuela Silva Martínez, Managing Patner at Santander InnoVentures.
“This will tremendously benefit software-as-a-service companies, which will need alternative financial services providers to support their growth and success. a55 is in a privileged position to support the Brazilian and Mexican companies with their financial offering, tailored to their needs and particularities, and built by entrepreneurs for entrepreneurs.”
It’s additionally worth noting that that is InnoVentures’ fourth contribution to a Latam startup.
Amongst its different portfolio corporations are Mexicans Klar and ePesos, in addition to Brazilian Creditas. Not-so coincidentally all are associated to credit score traces, as is a55.
Clearly, this VC’s wager within the area are loaning-related options.
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