a55 announces US$35m investment and Mexico expansion plans

By Sunniva Kolostyak

Latin American FinTech a55 has received a combined investment worth $35 million to drive commercial expansion into the Mexican market.

The investment into a55, which provides solutions in the alternative lending space offering revenue-based financing, is a combination of debt and equity. The funding comes from Accial Capital, an investor in tech-enabled loan portfolios in emerging markets, as well as E3 Negócios and Mouro Capital, who both doubled down on their previous investments into the FinTech in 2020.

The proceeds will be used to finance its credit operations across the Latin American region, with a particular focus on Mexico. It will also mean a further expansion of its products and commercial activities.

a55 is a FinTech lending to online SMEs in Brazil and Mexico. It offers predictable revenue through a technology platform connecting bank accounts, billing, payment means, digital marketing, credit intelligence and revenue insights. Today, it employs over 80 people, mostly in the areas of credit underwriting, software development and data science – and counts over 11,000 customers on its platform.

Through its platform and financing solutions, a55 has been a great ally for Mexican companies, especially in times of uncertainty on the Covid-19 backdrop, Hugo Mathecowitsch, CEO at a55, commented.

He said: “Data is the new gold and fuels the new economy. We are building the platform of the future, where digital, transactional and revenue data will drive credit decisions and shape the future of financial services to grow companies in the new online normal.”

a55’s technology solutions include a credit monitoring dashboard for borrowers, an insights section on revenue and cost metrics, an integrated cash flow covenant management system and escrow and revenue split tools for income sharing. For lenders, a55 developed a portfolio management and monitoring platform fed in real-time by transactional data.

Last year, a55 received an investment from Santander InnoVentures, Santander Group’s venture capital fund.