LatAm Fintech Kiwi Raises $80 Million to Provide Underbanked Consumers with Credit Access in the U.S.
- Fundraising News
- 22.05.2023 03:10 pm
Kiwi, a fintech dedicated to helping consumers build credit history and improve financial literacy, today announced that it has closed a $75 million credit facility and $4.5 million pre-series A funding round. The debt financing was provided by i80 Group an investment firm that specializes in providing credit solutions to growth companies, while Advent-Morro Equity Partners, Altio Capital and Independent Capital led the equity round.
Founded in 2020 by first-generation immigrants Mariano Sanz and Alexander Schachter, Kiwi is committed to addressing the financial challenges faced by millions of Latino consumers in the US. These individuals often lack credit history and are excluded from the traditional financial system. Utilizing proprietary AI and machine learning models, Kiwi offers thin-file borrowers with affordable capital, enabling them to build their credit profiles and manage everyday expenses.
With a strong customer base of over 30,000, Kiwi has already demonstrated its leadership in its market. Now, fueled by new funding and a surge in demand, the company is set for a phase of exponential growth. The company plans to introduce new products to establish itself as the primary platform where underbanked Latinos access a broader suite of financial services.
“Our investors’ support is a testament to the value of our mission and the impact that we’re having on our customers’ lives,” said Mariano Sanz, Co-founder and CEO of Kiwi. “We take pride in equipping underserved Latin immigrants with the tools and resources necessary to establish credit and secure access to capital. Addressing the difficulties faced by underbanked consumers in joining the traditional credit system will have the most significant positive impact on their financial lives. We remain dedicated to growing and expanding our services to serve more customers across the US and eventually Latin America."
Market statistics reveal that US Latinos are the fastest-growing and largest minority group in the country, for example, comprising over 18% of the total US population. With more than 60 million US Latinos, this number is expected to surpass 100 million in the coming decades. If compared to global economies, the US Latino GDP would rank fifth-highest worldwide.
"We're excited to support Kiwi in their mission to promote financial inclusion amongst underbanked Latinos," said Edward Goldstein, managing director at i80 Group. "Kiwi's innovative approach to credit access and their strong reception from customers make them a leader in the market and position them well to provide essential financial resources to people who need it. We look forward to seeing their continued growth and success."
Kiwi plans to use the funding to continue to expand its services and reach more customers across the US and Latin America.