GFC led a USD7m round for R5, a Colombian credit provider and financial education platform focused on the underbanked, with participation from Endeavor Catalyst, Carao Ventures and Magma Partners, and follow-on from Accion Venture Lab. Accion invested in April 2020.
(LatamList) – The Colombian fintech R5 announced it raised a $7M funding round led by Global Founders Capital. Magma Partners, Carao Ventures, Accion Venture Lab, and Endeavor Catalyst also participated in the round.
Vehicles are one of Latin Americans’ main assets, and minimizing costs around them is essential for their financial health. The startup uses Artificial Intelligence to offer customers fast, low-cost, and fair financial products for vehicles. As Fernando Sucre, CEO and founder of R5 explained.
The company offers three products: a free investment credit product with vehicles as collateral, a credit solution for purchasing used vehicles that provides loans at preferential rates, and the digital SOAT.
By bringing the SOAT(the Compulsory Traffic Insurance) to the digital world, R5 created a pioneering product in Colombia. The fintech R5, which could also be considered an insurtech, allows customers to receive exclusive discounts on the purchase of this insurance.
Very few high-growth startups record annual profits in the first three years of operation, and R5 reached this milestone as a young company.