Ecuadorian fintech AltScore, which provides B2B lending infrastructure, recently announced it had raised $3.5 million in seed funding.
The firm, founded by Andres Perez and Mateo Semerene, plans to use these resources to boost its integrated credit platform in Latin America.
The round was led by Far Out VC, with participation from Caffeinated Capital, Techstars, Unpopular Ventures, Kamay Ventures, BuenTrip Ventures, Lorimer Ventures, and CompuSoluciones Ventures.
Before this, the company had raised pre-seed capital of $450,000.
Innovative products in a rapidly growing market
“AltScore is a company with an outstanding Founder Market Fit, which has created a transparent culture of quality and constant improvement that delivers innovative products in a rapidly growing market,” said Jonathan Fentzke, Co-Founder & General Partner at Far Out VC.
The capital will allow AltScore to develop further its technology solution that is focused on supporting businesses and small and medium-sized enterprises through an end-to-end LaaS toolbox, as they state.
Also, the company said in a statement that it would expand its operations and move its headquarters to Mexico.
AltScore uses machine learning and artificial intelligence to enable its clients to provide loans to any person or company, including those outside the banking system.
The company will use the funds to evolve into an end-to-end lending tool, according to a statement signed by Perez and Semerene; the seed round obtained by the Ecuadorian fintech includes funds from the United States and Latin America.
Expanding access to credit in LatAm
According to the company founded in Ecuador in January 2021, 1.7 billion adults globally and more than 270 million in Latin America are outside the traditional system. Also, according to AltScore, access to credit is limited.
This year, the fintech achieved over 10x growth in revenue YoY and a 34% CMGR over the last 12 months. Moving forward, AltScore will focus its development in the Mexican market, looking to establish itself as a leader in the LaaS space.
“Altscore not only has a massive opportunity in the exploding Fintech revolution in LATAM, but the founders have deep domain expertise and a superhuman ability to execute. They are unstoppable,” said Andrés Barreto from Techstars.
Now the growth focus of the fintech, which operates in a dozen countries in North, Central, and South America and has around 30 clients, will be the Mexican market. It has 15 full-time employees.
