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Addi raises $75M to advance ‘buy now, pay later’ in LatAm, nearly triples valuation – TechCrunch

Buy now and pay later is officially everywhere, and Latin America is no exception.

Today, one startup in the region AdiAnnounced a $ 75 million expansion of Series B, bringing the total size of the round to $ 140 million. In late May, the startup announced that it had raised $ 35 million in an equity round led by Union Square’s Opportunity Fund and raised $ 30 million in debt from Architect Capital.

Headquartered in Bogotá, Colombia and Sao Paulo, Brazil, the company did not reveal a new rating, except that it was “almost three times” 90 days before it closed in the first tranche of the series. B, and that it’s currently in the “hundreds of millions of dollars” range.

New York-based Graycroft led the expansion. This includes new backers GGV Capital, Citius Capital, Crossroads Growth Partners, existing investors Union Square Opportunity Fund, Andreessen Horowitz, Endeavor Catalyst, Foundation Capital, Monarchies and Quona Capital. ..

With the latest funding, Addi has raised a total of $ 220 million in debt and equity since its inception in September 2018. That’s over $ 140 million in equity and $ 80 million in debt.

Santiago Suarez, Co-Founder and CEO of Addi, said: Daniel Vallejo and Elmer Ortega The company was founded with the vision of enabling digital commerce in Latin America (an area where an estimated less than 25% of people have credit cards).

“To do this, we had to solve the payment problem,” he said. “We wanted to enable frictionless payments while allowing customers to buy what they wanted.”

Addi started with a service that buys now and pays later. This allows consumers to buy in minutes with “just a few clicks”. Currently, the company allows customers to pay for purchases free of charge for at least three months. For large purchases, Addi allows you to pay up to 24 months at an amount called “competitive fair rates”.

Addi is currently available for e-commerce, mobile and in-store purchases in Brazil and Colombia and will be rolled out across Latin America in the coming years. In particular, it plans to enter the Mexican market in 2022.

According to Suarez, just earlier this year, Adi increased its GMV (total product volume) by a factor of 13.

“And our ARR has grown in the same way,” he said.

Like many other companies, Adi saw a temporary slowdown in business as a result of the COVID-19 pandemic. But it quickly bounced off.

“99% of GMV was lost 20 days after the pandemic. We had to make some painful decisions, including letting go of many colleagues during a very difficult time. “Suarez recalled. “We also focused our business on e-commerce and digital payments. We haven’t looked back since then.”

As a result, Adi reached its pre-COVID highs again in March / April 2021 and has grown about three times since then.

So far, Suarez added that the company is more focused on growth than profitability.

“This round has put a focus on making digital commerce ubiquitously accessible throughout Latin America,” he said.

Indeed, Latin America Leading the world Growth in e-commerce sales last year. As part of that, Addi currently has more than 150,000 customers, an increase of 30% to 40% month-on-month. On the merchant side, there are nearly 500 merchant partners, including brands such as Arturo Calle, Mario Hernandez, Keep Running and Claro. Earlier this year, it entered into a strategic partnership with Banco Santander.

Adi is now Have Over 260 employees (or, as Suarez said, partners) have increased from less than 120 a year ago. The company takes pride in being “one of the few startups in Latin America” ​​that gives fairness to all its staff.

“And we value talking about partners and co-owners, not employees,” Suarez told TechCrunch.

The company plans to use new capital to speed it up Product roadmap and geographical expansion. On the product side, we plan to launch a “one-click checkout solution” for merchants and customers by the end of the year. Adi will also accelerate its entry into Mexico, which is targeted for launch in early 2022, as mentioned above.

Graycroft’s Tabet Mahini said his company had been tracking startups “for a long time” before investing in Adi.

“In addition to the exceptional team, we believe that BNPL’s value proposition is stronger in Latin America than anywhere else in the world,” Mayani told TechCrunch. We … believe they have the opportunity to radically change the overall consumer payment experience in the region. “

This is because Latin American consumers currently have few options when it comes to credit, he points out. Card penetration is very low, and credit applicants “face a tedious and frustrating application process,” Mayani added.

And those who have a credit card are often given very low limits at high interest rates.

“It’s easy to understand how this dynamics makes it difficult and expensive for consumers to access secure and reliable credit,” he said.

According to Mahini, Adi “rebuilds the entire stack of onboarding, underwriting and fraud, providing consumers with a secure credit alternative while allowing merchants to significantly increase basket size and GMV. I did it. “

This is the second LatAm investment in Greycroft, which had previously invested in Rocket.chat, Brazil’s enterprise communications and collaboration platform.

In Mexico next year, Adi will join the existing player, Nero.That startup Raise $ 3 Million In April, and then, I lived with over 45 merchants and over 150,000 users.Also, alchemy earlier this year Enter the Mexican market..

Addi raises $75M to advance ‘buy now, pay later’ in LatAm, nearly triples valuation – TechCrunch Source link Addi raises $75M to advance ‘buy now, pay later’ in LatAm, nearly triples valuation – TechCrunch

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