Small and medium-sized businesses (SMBs) are the backbone of Latin American economies, representing over 90% of all companies in the region. They are the "productive engine of society," driving job creation, fostering innovation, and ensuring economic stability. Yet, these vital enterprises face a colossal financing challenge: a staggering credit gap estimated to be as high as $1.8 trillion across Latin America. A significant 87% of Micro, Small, and Medium-sized Businesses (MSMBs) find their credit demands unmet, severely stifling their growth and leaving them vulnerable to liquidity issues, delayed payments, and even bankruptcy.

Traditional financial institutions often overlook these otherwise creditworthy SMBs. This pervasive issue stems from a fundamental mismatch between conventional lending criteria and the evolving nature of modern businesses. Traditional banks struggle to leverage the granular data needed for accurate risk assessment of informal or digitally native businesses. Their reliance on tangible assets as collateral also presents a significant barrier for asset-light, technology-driven companies that lack the physical property typically required for securing loans. This systemic deficiency is not just a capital deficit; it's a persistent market opportunity for fintech credit innovation capable of deploying alternative data and flexible financing models.

It is within this context that R2 emerged in 2020, headquartered in Mexico City and other latin countries, like Colombia, Chile and Peru. R2's mission is clear: to unlock the untapped potential of SMEs by delivering innovative financial solutions precisely tailored to their distinct needs. R2 aims to fundamentally reshape Latin America's financial infrastructure, ensuring SMBs can access necessary capital without the cumbersome and often exclusionary processes of traditional banking. Since its inception, R2 has rapidly scaled, securing over $180 million in funding, including a notable $100 million line of credit from Community Investment Management. This robust investment is further bolstered by support from world-class investors like Google's AI-focused fund Gradient Ventures, General Catalyst, and Y Combinator. This substantial capital injection provides R2 with the resources to expand its operations and technology, serving as powerful validation of its approach and the immense market potential within Latin American embedded finance.

Demystifying Revenue-Based Lending: A Paradigm Shift in Financing

Revenue-based lending (RBL), often called revenue-based financing (RBF), signifies a profound departure from conventional capital-raising methods. In this model, businesses secure an upfront lump sum of capital by pledging a predetermined percentage of their future ongoing revenues. A hallmark of RBL is its inherent flexibility in repayment. Unlike traditional loans, which mandate fixed monthly payments or rigid interest rates, RBL repayments dynamically adjust with the company's monthly or quarterly income. This means that during periods of robust revenue, repayments are proportionally higher, while during slower periods, they decrease accordingly, directly aligning repayments with the business's actual performance and significantly alleviating cash flow pressures. The total repayment amount is typically capped at a pre-established multiple—for instance, 1.5x to 2.5x—of the original investment, known as the "repayment cap" or "factor rate." Once this cap is reached, the obligation to share revenue concludes, providing a clear and defined exit for the financing.

The advantages of RBL over traditional financing options are multifaceted and compelling. A primary benefit, highly attractive to businesses, is the absence of equity dilution; RBL does not necessitate relinquishing any ownership stake or control over the company, a stark contrast to equity financing. This empowers entrepreneurs to retain complete control and full incentive to drive their business's growth. The flexible repayment structure, where payments adjust to sales, offers unparalleled adaptability compared to the rigid, fixed monthly payments of traditional loans. This dynamic arrangement is particularly advantageous for businesses with fluctuating revenues.

RBL also boasts a significantly faster approval process, often less stringent than conventional methods. The assessment primarily focuses on revenue potential and cash flow rather than extensive financial statements or collateral. Decisions can frequently be rendered within 24 hours, with funds accessible in days or weeks, a dramatic improvement over the months often required for traditional bank loans. Moreover, RBL providers generally do not demand tangible collateral or personal guarantees from business owners, mitigating the risk of losing personal or business assets. This feature is especially beneficial for modern, asset-light, technology-driven companies that may lack traditional physical assets. The very structure of RBL inherently aligns the interests of both the business and the investor, as investors are motivated to actively support the company's growth because their returns are directly tied to its revenue success. Unlike traditional bank loans, RBL typically avoids imposing restrictive covenants that dictate business management, such as maintaining minimum liquidity levels, granting businesses greater operational autonomy.

This model represents a more appropriate and enabling financing option for the new generation of scalable, digital businesses. Traditional loans, by demanding tangible assets as security, often present an insurmountable hurdle for tech-driven companies whose primary value resides in intangible assets like intellectual property or software. RBL, by shifting its focus to recurring revenue streams, effectively bypasses this requirement. By providing capital access that traditional systems would deny, RBL directly accelerates innovation, fosters entrepreneurship, and contributes to economic diversification.

R2's Core Differentiator: Embedded Credit for Platforms

R2 significantly distinguishes itself within the fintech ecosystem by operating not as a direct lender to SMBs, but as an "embedded lending infrastructure provider." This strategic positioning enables R2 to empower other digital platforms—including e-commerce platforms, payment processors, Point of Sale (PoS) systems, and online marketplaces—to seamlessly offer financial services directly to their own merchant customers.

This service is delivered as a "white-labeled financial service" or "Capital-as-a-Service (CaaS)" or “Lending-as-a-Service (LaaS)” solution. This critical aspect allows R2's partners to offer financing under their own brand, preserving their existing customer relationship and brand integrity, without R2's name being front and center to the end merchant. R2 provides the comprehensive "lending stack," encompassing all complex back-end operations: data acquisition, sophisticated risk assessment, compliance, loan servicing, back office management, and even collections. This end-to-end solution is transformative, enabling platforms to launch a fully functional lending program in as little as two weeks, entirely bypassing the need to build complex lending capabilities from scratch while also not having to put a single penny.

Payment Processing Platforms Unlocking SMEs Potential

By integrating financing directly into the platforms where SMEs already operate and manage their daily businesses, R2 facilitates truly "frictionless capital" access. SMEs can access vital working capital and growth financing seamlessly within their existing workflows, eliminating the need to navigate external banking systems, complete extensive paperwork, or endure lengthy approval processes. The offers are tailor-made to specific merchant needs, ranging from $500 to $50,000 USD. The API-first approach is central to achieving this seamless integration, allowing for instant access to financing offers and real-time balance checks directly within the partner platform's interface.

This embedded model creates dual benefits, for both the digital platforms and the merchants they serve. For digital platforms, partnering with R2 unlocks and activates entirely new, diversified revenue streams beyond their core business. This embedded credit for platforms significantly boosts their merchants' Gross Merchandise Value (GMV) and dramatically increases customer retention and loyalty, making the platform inherently "stickier" for its users. This also provides a substantial competitive edge in increasingly crowded digital markets. For SMEs, they gain faster, fairer, and more convenient access to crucial growth capital. The automated deduction of principal and interest payments directly from their platform revenues minimizes trust requirements and streamlines the credit system, making repayments effortless and integrated into their natural cash flow. This model is precisely tailored to their cash flow needs and directly supports their growth and operational efficiency.

The B2B2B embedded model is more than just a distribution channel; it is a profound strategic move that leverages existing digital ecosystems. By integrating directly into established platforms, R2 taps into a pre-existing, captive audience of SMEs who are already engaged and generating valuable transactional data. This approach significantly reduces the high customer acquisition costs and overcomes the trust barriers that direct lenders typically face when trying to reach individual SMBs. This embedded strategy positions R2 as a critical enabler of the digital economy in Latin America. It transforms platforms from mere service providers into comprehensive financial hubs, deepening their relationship with merchants and creating a powerful network effect that reinforces R2's market position and accelerates its scaling capabilities.

R2's promise to be a platform's "financial arm, in days not years" highlights an immense value proposition for non-financial companies (e-commerce, POS, marketplaces). These entities often wish to offer financial services to their users but lack the specialized expertise, robust infrastructure, or regulatory know-how required. R2 addresses this by taking on the credit risk and handling the entire complex back-end of lending. This effectively democratizes access to financial services provision, allowing virtually any platform with a significant merchant base to become a fintech player without the prohibitive upfront investment or operational complexity. This will inevitably accelerate the proliferation of embedded finance solutions across Latin America, pushing financial inclusion forward by meeting SMEs precisely where they already conduct their business.

Beyond Credit Scores: R2's Data-Driven Underwriting Innovation (R2’s Lending Model Explained)

At the very core of R2's unique value proposition is its revolutionary departure from traditional, often exclusionary, credit history-based assessments. Instead, R2 bases its lending decisions predominantly on dynamic, real-time income streams, comprehensive transaction history, and detailed payment flows. This approach is a direct and necessary response to the prevailing reality in Latin America, where a vast number of SMEs, despite being creditworthy and economically active, lack formal credit histories or the tangible assets typically required by traditional banks. This is a crucial aspect of the R2 lending model.

R2 leverages "alternative data" sourced directly from its platform partners. This encompasses rich data generated from the merchants' daily operations within e-commerce, POS, or marketplace ecosystems. Examples of such data include sales volumes, customer reviews, delivery performance, inventory turnover, and other crucial operational metrics that paint a holistic picture of a business's health and potential. This model fundamentally redefines what constitutes creditworthiness. Instead of relying on traditional, often non-existent or inadequate, credit scores for SMEs in Latin America, it shrewdly leverages the "digital footprint" created by their online transactions and platform activity. This pivotal shift is directly enabled by the accelerating digitization of commerce across Latin America, which provides a rich, real-time data stream. This innovation is not merely about using alternative data; it is about establishing a new, more relevant, inclusive, and dynamic standard for financial assessment in the digital era. It transforms previously "unbankable" businesses into creditworthy entities, thereby fostering financial inclusion on a massive, unprecedented scale by recognizing their true economic activity.

AI Applying Millions Of Data Points And New Financial Use Cases

R2's sophisticated technology platform is built upon "data-driven underwriting" and advanced "AI-trained credit models." These proprietary models are extensively pre-trained on data from millions of merchants, allowing for a far more precise, nuanced, and accurate risk assessment than outdated traditional methods can achieve. This technological breakthrough truly enables R2 to offer capital in a way that is "faster and more inclusive than legacy financial institutions." It facilitates the generation of tailor-made offers for individual merchants and significantly reduces the time and manual effort required in loan origination and servicing through highly automated workflows. The ability to analyze vast datasets and diverse alternative data sources empowers R2 (and by extension, its partners) to gain a deeper understanding of the market, effectively lessen financial constraints for businesses, and more effectively handle demand shocks. The extensive use of AI-trained credit models and automated workflows is not just about making faster lending decisions; it is about making demonstrably better decisions. AI algorithms can process, analyze, and identify complex patterns in alternative data that human underwriters or traditional statistical models might entirely miss, leading to significantly more accurate risk assessments and, consequently, potentially lower default rates for lenders. The inclusion of "AI-driven solutions" even within their collections processes further reinforces the end-to-end integration and reliance on AI for operational excellence and risk management. The strategic and pervasive application of AI allows R2 to scale its operations with remarkable efficiency while simultaneously maintaining robust and sophisticated risk management capabilities. This technological edge is absolutely crucial for navigating the inherent complexities and unique risks of emerging markets, enabling R2 to consistently deliver on its promise of frictionless, inclusive, and sustainable financing.

Traditional banks often struggle with what is termed "financial mismatch and funding limits" for businesses, particularly those engaged in basic and high-technology R&D. Their rigid, strict underwriting processes can notoriously take months to complete, creating significant delays for businesses needing agile capital. Crucially, their inherent reliance on conventional credit scores and the requirement for physical collateral fundamentally excludes a massive segment of the vibrant SME market in Latin America, thereby perpetuating the pervasive credit gap. R2 directly addresses this systemic failure by constructing a robust lending stack powered by AI-trained credit models, effectively bridging the chasm between SME financial needs and the complexities of accurate risk assessment.

Driving Fintech Credit Innovation in Latin America

R2 operates squarely at the forefront of the "fast-growing Latin American fintech and SME lending space." The alternative SME financing sector in the region is experiencing truly rapid growth, projected to reach US $57.8 billion by 2028, reflecting a robust Compound Annual Growth Rate (CAGR) of 19.6%. This explosive growth is fundamentally fueled by a confluence of factors: innovative product offerings, strategic partnerships that expand reach, and evolving regulatory frameworks that aim to balance market expansion with consumer protection. R2's unique model, particularly its deep focus on embedded finance, is a pivotal driver of this broader wave of fintech credit innovation. Fintech, in general, demonstrably improves regional innovation efficiency. It significantly increases the processing speed of loan applications (by approximately 20%) and effectively leverages big data and machine learning to lower risk and enhance access to financing for businesses.

The region is undergoing a profound "digital transformation," characterized by high smartphone penetration and widespread internet access, which are rapidly fueling the shift from traditional cash-based transactions to digital payments. E commerce, in particular, is booming, with transaction volumes more than tripling between 2019 and 2023. The market was valued at $509 billion in 2023 and is projected to grow to an astounding $923 billion by 2026. Within this dynamic environment, sub-segments like peer-to-peer lending and fintech-driven credit platforms are gaining substantial traction, specifically catering to previously underserved populations and small businesses. The escalating demand for digital services is actively pushing traditional financial institutions to offer more sophisticated digital banking services, thereby creating a supportive and competitive environment that fosters local innovation across the financial sector.

The rapid and widespread growth of e-commerce and digital payments in Latin America is not merely a contextual backdrop for R2's operations; it is the fundamental enabling condition for its innovative model. Without the verifiable digital footprints of SMEs on these platforms, R2's data-driven underwriting would be impossible. Conversely, R2's embedded finance solutions actively accelerate e-commerce adoption and digital payment usage by providing essential growth capital directly to merchants within those digital ecosystems. This creates a powerful, self-reinforcing virtuous cycle: increased digitization fuels the efficacy and scalability of embedded finance, which in turn drives further digital adoption and formalization of businesses. R2 is therefore not just participating in the digital transformation of Latin America but is actively accelerating it, strategically positioning itself as a foundational layer for the future of commerce and finance in the region.

R2's model directly and effectively addresses the immense challenge of the large unbanked population in Latin America (estimated at 178 million as of 2021) and the pervasive SME credit gap. By enabling platforms to seamlessly offer financing, R2 helps "underbanked businesses" gain crucial access to capital, directly stimulating economic growth and advancing financial inclusion. A key operational aspect of R2's model is the automatic deduction of principal and interest repayments directly from merchant platform revenues. This mechanism ensures that merchants are "banked and have a financial footprint," a critical step towards formal financial participation and building a verifiable credit history within the digital ecosystem. This process minimizes trust requirements and significantly streamlines the credit system, fostering a more robust and efficient financial ecosystem. R2's vision is deeply aligned with the future of finance, where "AI-powered credit underwriting will become more precise, leveraging transactional and behavioral data instead of traditional credit scores," thereby unlocking lending opportunities for millions who were previously excluded.

R2 explicitly states that it takes on the credit risk and handles the intricate "full lending stack," which includes everything from sophisticated risk assessment to compliance and collections. This comprehensive risk and operational burden transfer is a massive incentive for platforms. It allows them to offer valuable financial services to their users without having to take on the inherent financial risks, regulatory complexities, or operational burdens of becoming direct lenders themselves. This "de-risking" function is a powerful differentiator for R2, making its solution highly attractive to platforms, especially those without prior financial services expertise or the capital to build out such capabilities. It enables these platforms to diversify their revenue streams and significantly enhance customer value without diverting critical resources from their core business or incurring substantial financial and regulatory liabilities. This positions R2 as an indispensable strategic partner for any platform looking to expand its offerings into the financial realm.

Real-World Impact: Partnerships and Success Stories

R2’s lending model is best explained through its real-world impact. The company’s business strategy relies on strategic collaborations with leading digital platforms across Latin America. These alliances are essential for R2’s B2B2B model, as they provide robust, pre-existing distribution channels to deliver embedded lending services at scale.

R2 has partnered with several prominent regional platforms—including apps used for delivery services, point-of-sale solutions, and online marketplaces—which are widely adopted by SMEs across the region. For instance, a successful case in southern Latin America involved embedding merchant lending within a food delivery management app, enabling thousands of restaurants and grocery stores to access working capital directly through a familiar interface.

R2’s seamless integration into these environments ensures that capital reaches businesses precisely when and where it is needed. Additionally, R2 has extended its reach by collaborating with vertical-specific digital platforms—such as an online farmers' market operating in Colombia—to offer financing solutions tailored to the needs of small vendors.

These partnerships not only demonstrate R2’s adaptability across various digital ecosystems, but also highlight how embedded lending enhances platform value.

The strategic relationships with top regional platforms—ranging from delivery apps to retail marketplaces—create a powerful, self-reinforcing network effect. These platforms offer a wide merchant base and high volumes of transactional data, enabling R2 to scale effectively while refining its underwriting models.

In return, R2’s embedded financing tools make these platforms more appealing to merchants, increasing engagement and retention. This mutual value creation accelerates R2’s market presence and strengthens its position in Latin America’s embedded finance landscape. The more platforms R2 integrates with, the stronger its competitive edge becomes—fueling smarter credit decisions and improved loan performance.

R2's impact is not just theoretical; it is quantifiable and demonstrably impactful. The company has facilitated over $130 million in loans to over 70,000 businesses and independent contractors across Mexico, Colombia, Chile, and Peru, showcasing its broad regional reach and commitment to financial inclusion; the growth rates underscore R2’s rapid scaling capabilities and effective market penetration. A compelling individual success story highlights the transformative power of accessible capital: Francisco Rodriguez, a mini market owner, secured over $40,000 in loans through R2's infrastructure (via a partner platform) and subsequently grew his monthly sales by an astounding 400% since 2021. This anecdote powerfully illustrates how R2's model translates into tangible, life-changing growth for individual SMBs. Furthermore, the broader market context supports R2's impact: the growth of SME restaurants on a popular delivery app saw a 150% increase in sales, with 58% of new associated restaurants being SMBs. This data provides compelling evidence of the vast market opportunity R2 is effectively tapping into by partnering with such high-volume digital platforms. The compelling success stories, particularly the mini-market owner's 400% sales growth and the significant growth of SME restaurants, clearly demonstrate that R2's financing is not just enabling existing businesses to survive; it is actively fueling their expansion and success within digital ecosystems. By providing readily accessible capital, R2 directly empowers these businesses to invest in scaling their online operations, enhancing their marketing efforts, and accelerating product development. R2's lending model serves as a critical, often overlooked, enabler for the broader digital transformation of Latin American economies. By making capital accessible to SMEs that embrace digital platforms, R2 is not only effectively closing the credit gap but also actively accelerating the fundamental shift towards a more digital, formalized, and financially inclusive economy across the region.

Conclusion: Reshaping the Future of SME Financing in Latin America

R2 stands out as a pioneering force in the alternative SME financing landscape by championing an innovative embedded credit for platforms model. This strategic approach allows it to reach a vast, underserved market. Its core uniqueness is rooted in its revenue-based lending approach, which fundamentally redefines credit assessment. Instead of relying on traditional, often inaccessible, credit histories, R2 bases its decisions on dynamic, real-time income streams and comprehensive transactional data. This shift is particularly impactful in Latin America, where traditional credit data is scarce for many SMEs. This profound fintech credit innovation is powered by advanced AI-trained models and seamless API integration, enabling R2 to provide white-labeled, frictionless capital directly to SMBs through the digital platforms they already use daily. The R2 lending model explained above is not merely a financial product; it is a powerful, systemic solution to Latin America's persistent $1.8 trillion SME credit gap, directly fostering financial inclusion and stimulating vital economic development across the region.

The trajectory of SME financing in Latin America increasingly points toward a future where capital will be accessed not through banks, but through the very digital platforms that SMBs already use to operate and grow. This shift signals a profound change: platforms are no longer just tools for sales or logistics—they are becoming key financial enablers.

Embedded lending, when integrated into these platforms, allows them to offer seamless access to capital, helping SMEs bridge financing gaps in real time. As platforms collect vast streams of transactional and behavioral data, AI-powered underwriting can unlock new lending opportunities for millions of businesses previously excluded from traditional credit systems.

In this context, platforms act as growth engines, offering not only distribution and visibility, but also embedded financial services that anticipate and respond to liquidity needs. Real-time cash flow tools and lending offers tailored to platform activity transform financing from a burden into a built-in growth lever.

As these platforms scale, embedded lending becomes a strategic advantage—boosting merchant retention, platform loyalty, and overall ecosystem value. R2, with its infrastructure and deep partnerships, is perfectly positioned to support this transformation—empowering platforms to empower SMEs, and in doing so, closing Latin America's $1.8 trillion credit gap.

Ready to Empower Your Merchants?

If you're a digital platform looking to unlock new revenue streams, increase merchant loyalty, and offer seamless financial services to your users, contact R2 today to learn how our embedded lending infrastructure can transform your business.

Sources:

• OECD, CAF, SELA. “SME Policy Index: Latin America and the Caribbean 2024” https://www.oecd.org/dev/sme-policy-index-latin-america-caribbean.htm

• Helmi Group. “Fintech in Latin America: Trends and Opportunities 2023 Q4” https://www.helmigroup.com/insights/fintech-in-latin-america-trends-and-opportunities-2023-q4

• Entrevista exclusiva con Guillermo Bravo, Chief Product Officer de R2.

• World Economic Forum. “Embedded Finance: A Disruptive Force for Financial Institutions”https://www.weforum.org/stories/2025/04/embedded-finance-disruptive-force-financial-institutions/

As highlighted in McKinsey’s 2023 report on digital banking, Latin America is at a pivotal moment. Over 50% of new financial products are now launched through digital-first channels. This digital momentum is not just improving user experience—it’s enabling a new era of financing models like embedded lending, which has the potential to unlock capital for millions of underserved businesses across the region.

Why SMEs matter—and why they struggle with credit

SMEs make up 99% of companies in Latin America and generate more than 60% of jobs, according to regional economic development institutions. These businesses are not only essential to the region’s employment but also to its economic resilience and innovation. However, when it comes to accessing credit, SMEs consistently face obstacles. Traditional banks often classify them as high-risk due to informal accounting, lack of collateral, or thin credit histories that don’t align with conventional risk models.

This is particularly problematic because SMEs are actively seeking financing to:
invest in inventory, marketing or innovation, upgrade equipment, expand regionally, and bridge cash flow gaps.
Yet, nearly half report being underserved or excluded from formal credit markets. The result? Missed growth opportunities, limited ability to hire or digitize operations, and an overall disadvantage in a fast-evolving economy.

The rise of digital banking in Latin America

The region’s digital banking ecosystem has evolved rapidly. Digital banks—or neobanks—have been launched across Mexico, Brazil, Colombia, Argentina, and beyond. Many of them operate without physical branches, offering mobile-first solutions tailored to a young, tech-savvy population.

What’s driving this growth?

• Smartphone penetration exceeds 80% in many major economies in the region.

• Governments have supported instant payment systems (like Brazil’s PIX, Mexico’s SPEI or Peru’s Yape).

• Consumers are increasingly embracing cashless solutions and digital wallets.

• Fintech adoption in Latin America is outpacing global averages.
  
  

According to McKinsey, digital banks are now winning a disproportionate share of new retail and SME clients by offering lower fees, faster onboarding, and better digital experiences. These trends are also being mirrored in the B2B space, where digital banking infrastructure is enabling faster credit decisions and more customized financial services.

From digital banking to embedded lending

Digital banking sets the foundation, but embedded lending is the next frontier.

Embedded lending refers to credit products offered within the platforms that SMEs already use—whether that’s an e-commerce marketplace, a POS system, or a logistics app. Instead of applying through a bank and waiting days or weeks for approval, SME users can access financing directly through their digital environment, based on their real-time performance data.

This model is flourishing in LATAM for three key reasons:

1. Low traditional credit penetration. With many SMEs lacking formal credit histories, traditional banks often turn them away. But embedded finance platforms can assess repayment capacity based on transactional data.

2. Platform integration. Many SMEs operate through marketplaces or delivery apps. Embedding lending directly into these platforms allows for frictionless access to capital.

3. Dynamic repayment models. Loans can be repaid as a percentage of future sales (e.g., revenue-based financing), making them more flexible and aligned with business realities.
   
   

Examples across industries

• Retailers using POS systems can access inventory loans based on real-time sales.

• Restaurants on delivery platforms can receive short-term working capital to expand operations or hire staff.

• Drivers on logistics or ride-sharing apps can qualify for microloans to maintain vehicles or buy fuel, repaying through future trips.
  
  

These use cases demonstrate that SME financing innovation is not about more complex credit scores—it’s about leveraging existing data and embedding financial tools where they are most useful.

Rethinking the future of banking in Latin America

As digital banks grow, they unlock infrastructure that can be used beyond consumer banking. APIs, open banking initiatives, and digital KYC protocols make it easier to onboard and assess users in real time. This digital foundation is ideal for supporting scalable, bank-free financing solutions like embedded lending.

More importantly, embedded lending doesn’t just solve a problem of speed or convenience. It addresses a structural gap: credit access in LatAm is fundamentally different from developed markets. In countries with large informal sectors and inconsistent documentation, the future of SME financing lies in models that meet users where they are—on the platforms they already trust and use daily.

The real impact: economic inclusion

Financial inclusion in emerging markets is not just a moral imperative; it’s a growth strategy. The more SMEs have access to capital, the more they can:

• Invest in inventory and equipment

• Hire employees

• Expand regionally

• Weather cash flow gaps

• Digitize their operations
  
  

McKinsey’s data points to a powerful trend: SMEs with access to digital financial tools grow 2–3x faster than those without. And for many of them, embedded lending is their first real interaction with formal credit.

The road ahead

To continue scaling digital SME lending, the region needs:

• Regulatory support for open finance initiatives

• Better data infrastructure for platform-based credit models

• Strategic partnerships between fintechs and digital platforms

• Continued investment in digital banking LatAm 2025 trends

As the financial ecosystem matures, the lines between fintech, banking, and platforms will continue to blur. What matters is not where financing comes from—but how seamlessly it meets the needs of millions of businesses driving the Latin American economy.

For digital platforms—such as payment processors or marketplaces—embedding financing is not just a value-add for users. It enhances loyalty, boosts transaction volumes, reduces churn, and creates new revenue streams through commissions or service fees. In enabling financial inclusion, these platforms also unlock their own long-term growth potential.

Final thoughts

The evolution of digital banking in Latin America has paved the way for a more inclusive, agile, and scalable financial ecosystem. And at the center of this transformation is embedded lending: a model that fits the region’s unique challenges and opportunities.

It’s not just the future of SME lending. In many ways, it’s the present reality that’s reshaping access to growth capital in Latin America.

Sources:

• McKinsey & Company. “Global Banking Annual Review 2023: The great banking transition.” https://www.mckinsey.com/industries/financial-services/our-insights/the-great-banking-transition

• OECD, CAF, SELA. “SME Policy Index: Latin America and the Caribbean 2024.” https://www.oecd.org/dev/sme-policy-index-latin-america-2024.pdf

• Helmi Group. “Fintech in Latin America: Trends and Opportunities 2023 Q4.” https://www.helmigroup.com/insights/fintech-in-latin-america-trends-and-opportunities-2023-q4

• World Economic Forum. “Embedded Finance: A Disruptive Force for Financial Institutions.” https://www.weforum.org/stories/2025/04/embedded-finance-disruptive-force-financial-institutions

Why? Because the opportunity is massive. With over 650 million people and more than 400 million mobile internet users, LatAm is one of the most rapidly digitizing regions in the world. Internet penetration is approaching 80% in key countries like Brazil, Mexico, and Argentina, while smartphone usage has already surpassed 80% region-wide. At the same time, formal financial inclusion is still catching up — a perfect storm for embedded finance to leapfrog legacy systems and deliver financial access where it’s long been missing.

In Latin America, embedded finance isn’t a convenience, it’s an economic enabler.

LatAm vs. the U.S.: Different contexts, different needs

1. Banking infrastructure and inclusion gaps

In the U.S., more than 95% of adults have a bank account. Financial systems are well developed, and most small businesses have at least some access to credit—even if the experience is clunky.

But in Latin America, more than 200 million people remain underserved or excluded from the formal financial system, according to the SME Policy Index: Latin America and the Caribbean 2024. Many small and micro businesses still operate in cash, with no formal credit history.

In the U.S., embedded finance adds convenience. In LatAm, it unlocks access.

2. Fintech adoption is accelerating in LatAm

Despite infrastructure gaps, LatAm leads globally in fintech innovation. Between 2018 and 2021, the number of fintech startups in the region more than doubled, according to the same OECD report. Countries like Brazil, Mexico, and Colombia are leading this surge.

The region’s mobile-first behavior makes embedded finance a natural fit. Platforms across food delivery, retail, e-commerce, and services are already integrated into users’ daily routines—making them ideal channels for financial services.

For instance, Helmi Group notes that mobile fintech solutions have seen over 20% annual user growth in Mexico and Brazil alone.

3. Embedded finance bridges urgent inclusion gaps

While U.S. embedded finance often aims to improve UX or increase platform loyalty, in LatAm, it fills a much more urgent role: enabling underserved users to stay operational.

A small merchant unable to finance inventory, a delivery driver who can’t repair their motorcycle, or a restaurant that needs capital to cover payroll—these are not edge cases, they’re daily realities.

As Guillermo Bravo, Chief Product Officer at R2, explains: “We focus on income, not legacy. Banks look at who your parents were. We look at what you’re building now.” You can learn more from this interview with Guillermo.

That shift—from static credit histories to real-time performance—is what makes embedded finance viable in LatAm.

4. Credit access is broken in traditional models

Traditional credit scoring often excludes those without formal employment, asset ownership, or documented income. That leaves millions of entrepreneurs, independent workers, and several small businesses out of the system.

Embedded finance models like R2’s use behavioral data and platform transactions to evaluate both: credit-worthiness and repayment-willingness, replacing outdated and exclusionary metrics.

According to the World Economic Forum, “embedded finance can reduce customer acquisition costs by 70% and enable personalized risk models that reach underserved markets.”

5. Platform integration creates scalable distribution

LatAm has large, dominant digital platforms that act as centralized ecosystems—delivery apps, merchant marketplaces, POS systems—where millions of users transact regularly.

This makes it far easier to integrate embedded finance directly into workflows. No need for users to download a new app, visit a branch, or fill out lengthy paperwork.

Platforms that work with R2 can:

• Offer loans inside their existing interface

• Adjust credit terms dynamically based on behavior

• Generate revenue while outsourcing financial risk

It’s a win-win infrastructure.

6. Larger impact, faster feedback loop

Because the need is so pronounced, the impact of embedded finance in LatAm is much more visible.

• A retailer accesses $5,000 to stock up for a seasonal sale.

• A food delivery driver gets $200 the same day to repair their vehicle.

• A POS platform offers its merchants working capital of up to $200,000, tailored to their revenue.

While in the U.S., these cases would provide marginal gains, these are transformational in LatAm.

Why the R2 model works better in Latin America

Unlike many digital lenders that were built for developed markets and later adapted, R2 was born with the challenges of emerging economies in mind. It wasn’t designed to optimize what's already working — it was created to solve what’s still missing.

In countries where informal economies dominate, financial histories are scarce, and traditional documentation is inconsistent, legacy credit systems fall short. That’s why R2 doesn’t rely on outdated infrastructure or static scoring models. Instead, it connects directly with digital platforms that already power commerce across the region — and it turns that live activity into a basis for trust.

Let’s break down how the model works in practice.

Paperless onboarding: simplicity from day one

Most LatAm users aren’t used to lengthy application processes or documentation-heavy systems. Many lack formal income statements, bank records, or tax filings. With R2, users onboard in minutes, directly through the platforms they already use, without needing to leave the app or submit paperwork.

This removes a major friction point and ensures that access to credit doesn’t depend on formal literacy or financial system experience.

Real-time disbursement: capital when it’s actually needed

Time is everything for small businesses and independent workers. Whether it's a delivery driver needing to fix their bike today or a retailer preparing for a seasonal spike, R2 enables same-day funding.

Funds are disbursed directly into the user’s digital wallet or platform balance, so they can act immediately. No waiting. No branches. No delays.

Revenue-based repayments: credit that adapts to cash flow

One of R2’s most distinctive advantages is its revenue-linked repayment model. Instead of fixed monthly amounts, repayments are tied to real-time earnings — allowing businesses to pay more when they earn more and less when things slow down.

This is particularly valuable in LatAm, where many businesses face high volatility due to seasonality, inflation, and informal market dynamics.

The result: credit becomes flexible and sustainable, not a burden.

Full white-label integration: platforms stay in control

R2’s infrastructure is fully embeddable and white-labeled, meaning that platforms can offer financing under their own brand, with full ownership of the user experience — while R2 handles the credit, compliance, and risk behind the scenes.

This creates new revenue streams for platforms without adding operational complexity, and strengthens user loyalty by turning platforms into true financial enablers.

Loan ranges from $200 microloans to mid-market loans of $50K or uncapped (revenue-based)

Unlike lenders that only target one user profile, R2 is designed to support the full spectrum of digital economy participants. That includes:

• Delivery drivers or gig workers, accessing $200–$1,000 USD microloans to cover repairs or personal emergencies.

• Small business owners, requesting $5,000–$25,000 USD to finance inventory or open a second location.

• Medium-sized enterprises, normally receiving up to $200,000 USD in working capital to expand aggressively during peak demand; however there wouldn’t be a cap on loan amounts as it’s based on the business monthly revenue.

This tiered model ensures that no opportunity is too small to serve or too large to grow.

Designed for financial invisibility

Most importantly, R2 is designed for those individuals and businesses that the banks usually ignore. For the millions of entrepreneurs, small merchants, and platform users in LatAm who don’t fit into the formal financial system, R2 builds a new path — one based on their performance, not their paperwork.

Because the future of financial inclusion in LatAm isn’t about catching up to legacy systems. It’s about skipping them entirely.

So why doesn’t this scale at the same rate in the U.S.?

So why doesn’t this scale at the same rate in the U.S.?

Because the pain points are different.

In the U.S., most businesses have at least basic access to credit—even if it’s costly or slow. Embedded finance functions more as a UX layer than a critical system. By comparison, Latin America has over 200 million underserved individuals, and only 3 out of 10 adults report having access to formal credit or investment products. That’s not a gap—it’s a chasm.

And while the embedded finance market in the U.S. is larger in terms of transaction volume and venture capital, the impact per user is much higher in LatAm. It enables participation, not just optimization.

Regulatory challenges, digital fragmentation, and a more saturated credit ecosystem make scaling embedded lending harder in the U.S. The urgency just isn’t the same.

Summary: embedded finance in LatAm vs. U.S.

Final thoughts: where embedded finance creates the most value

Innovation doesn’t always start where infrastructure is strongest. Sometimes, it’s where needs are deepest.

That’s why embedded finance has more transformative potential in Latin America than in the U.S. It’s not about speeding up a good system—it’s about building a system where none existed.

For platforms operating in LatAm, this isn’t a future trend—it’s today’s competitive advantage.

Sources

• OECD, CAF, SELA. “SME Policy Index: Latin America and the Caribbean 2024”
https://www.oecd.org/dev/sme-policy-index-latin-america-caribbean.htm

• Helmi Group. “Fintech in Latin America: Trends and Opportunities 2023 Q4”
https://www.helmigroup.com/insights/fintech-in-latin-america-trends-and-opportunities-2023-q4

• World Economic Forum. “Embedded Finance: A Disruptive Force for Financial Institutions”
https://www.weforum.org/stories/2025/04/embedded-finance-disruptive-force-financial-institutions/

• Entrevista exclusiva con Guillermo Bravo, Chief Product Officer de R2.

This article draws on insights from Guillermo Bravo, Chief Product Officer at R2, who previously led embedded finance initiatives at Amazon. For him, embedded lending is not a new concept — but one whose full potential remains largely untapped in Latin America. As he puts it, “Our vision is to unlock financial services across Latin America. We want to be the invisible bank for platforms.”

This is where R2 is building something different: a credit infrastructure designed to meet the realities of digital platforms and their users.

As a fintech company deeply integrated into the ecosystems of digital marketplaces, restaurants, delivery drivers, and retailers platforms across Latin America, R2’s embedded finance model is not just a lending tool — it’s a lending infrastructure for marketplaces, payment processors, among others. It powers growth, retention, and engagement by aligning financing with how businesses actually earn revenue.

This article explores what makes R2 different from typical lending fintechs and why its model is designed to deliver long-term value to platforms and their partners.

Rethinking digital lending: what most models miss

The traditional digital lending approach — even when digitized — still mirrors the conventional banking model: static credit scoring, complex documentation, risk and underwriting disconnected from user behavior, and rigid repayment structures.

Some of the consequences loan users face, even with most fintech companies, are: time spent (or lost) attempting to obtain a loan and the availability of actually obtaining one. This time is impacted due to standard working procedures, such as:

• Require full applications outside the user’s regular platform.

• Base creditworthiness on limited data snapshots or complex documentation.

• Offer standard loan products, often irrelevant to sector-specific needs.

• Operate separately from the business’ main digital touchpoints.

• Loan repayment requires going to a bank or keeping strict deadlines.

These challenges result in:

• Low uptake rates.

• Higher default risks.

• Poor user experience.

R2 saw a gap — and built a model around solving it.

The LatAm context: why embedded finance is essential

In Latin America, access to traditional credit remains a barrier for millions of small and medium-sized businesses. According to the Inter-American Development Bank, over 45% of SMBs in the region cite lack of financing as their top growth constraint. Many of these businesses operate informally or lack the documentation that traditional banks require.

Even digital-first businesses — like restaurants selling via apps, or merchants on online marketplaces — often face credit rejection because their revenue doesn’t fit the mold of “formal” income.

This is where embedded, data-driven models like R2 come in.

How R2 credit works differently

1. Immediate access to credit

Unlike traditional loans that require paperwork and take days or even weeks to disburse, R2 enables users to access the capital they need—right when they need it. Sellers, restaurants, and other platform users can apply in just a few clicks and receive funds in under 24 hours.

This speed and simplicity are critical during high-demand moments, like inventory restocks before seasonal peaks or urgent equipment upgrades. The process is fully digital, frictionless, and timed to match actual business needs.

2. Financing built into the platform journey

R2 doesn’t offer loans as a separate service — it embeds credit into the natural workflows of users. Whether it’s a seller in a marketplace, a restaurant on a delivery app, or a store using a point-of-sale platform, credit becomes a seamless part of their business environment.

R2 Embedded Finance means:

• Users receive loan offers without leaving the platform.

• Offers are timed with relevant actions (e.g., inventory purchases, high season prep).

• Repayments are automated and connected to real sales or revenue events.

This credit model increases usage, minimizes friction, and reduces risk.

3. Revenue-based underwriting: smarter and more inclusive

Traditional banks evaluate borrowers based on past documentation — often inaccessible or irrelevant to digital workers. R2 evaluates borrowers based on current and projected income, such as revenue trends, order volume, and platform engagement.

“Focusing on income is how we stay fully objective,” says Bravo. “No bias. Just performance.”

R2’s credit model adapts to the user’s revenue flow.

How R2 Credit Works:

• Loans are repaid as a fixed percentage of income.

• No pressure when sales drop — payments flex with performance.

• Cash flow remains balanced, even in volatile months.

This is critical in Latin America, where seasonality, informality, and economic swings demand financing that flexes.

4. Data-rich, real-time

Instead of relying on credit scores or balance sheets, R2 uses behavioral and transactional data from the platform itself.

Alternative data-rich understanding includes:

• Sales history

• Delivery frequency

• Order volume

• Inventory cycles

This enables faster, smarter decisions — and allows platforms to offer tailored credit to users previously excluded by traditional systems.

5. Customizable for each platform

R2 is not a plug-and-play API — it’s a strategic fintech partner. Credit products are adapted to match the business model of each platform.

Benefits of R2 for platforms

• Financing that boosts specific KPIs (e.g., seller retention, supply availability).

• White-label credit flows tailored to UX.

• Flexible integration methods to meet tech stack constraints.
  
  

Whether a platform wants to increase sellers GMV or reduce churn, R2 aligns its credit offers to drive those outcomes.

See how embedded financing is driving platform growth

From microloans for delivery drivers to six-figure capital for mid-sized businesses, explore real examples of how R2’s model empowers digital ecosystems.
Want to explore your platform’s loan potential? Let’s talk.

Built for Scale, Built for Impact

R2’s infrastructure is designed to scale across thousands of users with minimal operational overhead. From underwriting to repayment collection, the process is automated and responsive to platform dynamics.

Key advantages:

• Fast deployment (weeks, not months)

• Minimal lift for platform teams

• Risk-sharing models aligned with performance

• Compliance-ready frameworks across LATAM
  
  

The R2 fintech mindset: beyond credit, toward ecosystem growth

R2 doesn’t just finance — it empowers. By understanding how platform-based businesses operate, it delivers tools that are:

• Faster (disbursed in minutes, maximum a few hours, not weeks)

• Smarter (based on platform data, not paperwork)

• More human (adapted to the real business journey)

While many fintechs offer credit, R2 Fintech solutions focus on impact:

• Growth that scales with performance

• Financing that drives loyalty

• Credit that works with the platform, not around it

Sources

• Inter-American Development Bank. The Role of Capital Markets in Funding MSMEs in Latin America and the Caribbean. IDB, 2023

• World Economic Forum. Embedded Finance: A Disruptive Force for Financial Institutions. WEF, 2025

• OECD, CAF, SELA. SME Policy Index: Latin America and the Caribbean 2024. OECD, 2024

• Helmi Group. Fintech in Latin America: Trends and Opportunities 2023 Q4. Helmi Group, 2023

• América Digital. Why Mexico Will Become the Next Fintech Capital of Latin America.America Digital, 2023

• Entrevista exclusiva con Guillermo Bravo, Chief Product Officer de R2.

In a region where nearly 50% of small businesses cite limited access to capital as their biggest growth barrier, digital financing is no longer a trend—it’s a necessity. As Latin America's economy continues its rapid digitalization, companies of all sizes are reevaluating how they access and deliver financial tools. One group stands out: the ecosystem of platforms, merchants, and independent workers that power commerce daily across the region.

From bustling online marketplaces and restaurant chains to independent shop owners and gig economy delivery drivers, the demand for bank-free financing solutions is surging. Why? Because traditional credit simply doesn’t work for them. It's too slow, too rigid, and too exclusionary.

This article explores how digital financing models, like those powered by R2, are unlocking tailored capital access for diverse partner segments—and why platforms that embed these solutions gain a competitive edge.

The case for digital financing in Latin America

Traditional banking systems are designed for businesses with predictable income, collateral, and long credit histories. That leaves out millions of businesses and workers across LatAm, who may be formal, semi-formal, or entirely informal but still generate strong, consistent revenue.

Digital financing uses real-time data, platform behavior, and advanced underwriting models to evaluate creditworthiness. This allows platforms to provide loans for marketplaces, working capital for restaurants, inventory credit for retailers, or microloans for drivers—all embedded directly into their digital experience.

Instead of a one-size-fits-all loan, financing is tailored to the user: how they earn, how often they transact, and how they grow.

R2's model is built to serve a wide spectrum of businesses—from independent gig workers needing $200 USD to stay operational, to mid-sized companies seeking $10,000 to $50,000 USD for expansion. In some cases, we’ve supported larger loans depending on platform performance and user behavior.

1. Marketplaces: capital that drives seller growth

Use case. A regional online marketplace with thousands of small sellers faces a recurring issue: vendors can’t meet demand during seasonal peaks because they can’t afford to stock up inventory.

Challenge. Sellers are often micro-entrepreneurs, lacking traditional documentation or collateral.

Digital financing solution. By embedding seller financing into the platform, the marketplace can offer short-term working capital advances based on sales volume, order fulfillment rates, and customer ratings. Sellers receive offers in-app and repay via future sales.

Benefits:

• Increases seller inventory capacity

• Reduces cart abandonment due to stockouts

• Boosts seller loyalty and retention

Platforms that offer loans for marketplaces increase GMV and vendor performance—all while monetizing credit.

2. Restaurants: working capital when timing is critical

Use case. A growing restaurant chain in Mexico City wants to open a new location but struggles with up-front costs: equipment, staffing, initial inventory.

Rodrigo runs a successful mid-sized restaurant group with a strong presence on food delivery apps. He’s ready to open a fifth location but can’t afford the lag time of a bank loan. He’s already negotiating a lease and hiring staff—but the money simply isn’t flowing fast enough.

Digital financing solution. Through the delivery platform, Rodrigo receives an offer for working capital for restaurants based on his monthly order volume and customer rating. The repayment plan adjusts based on his performance and is automatically deducted from his weekly revenue.

Benefits:

• Enables faster expansion

• Smooths cash flow during low-demand periods

• Helps restaurants invest in tech, logistics, or renovations

With this support, Rodrigo launches on time, manages to meet demand from day one, and maintains liquidity. This capital doesn’t just support survival—it accelerates growth, especially when timed to strategic launches or seasonal demand.

3. Retailers: flexible inventory financing for dynamic sellers

Use case. A fashion boutique with both physical and online presence needs to prepare for a flash sale campaign.

Lucía runs a hybrid fashion business in Lima. Her online shop sees spikes in traffic during influencer collaborations, but to capitalize on the demand, she needs to pre-order styles in advance. Paying for inventory upfront would deplete her cash reserve.

Digital financing solution. Through her e-commerce provider, Lucía receives a revenue-based cash advance tailored to her store’s historical sales and forecasted traffic. Repayment is tied to daily revenue—no sales, no payment.

Benefits:

• Aligns repayments with business cycles

• Increases marketing power without diluting cash flow

• Avoids traditional loan risks and fees

Lucía doubles her inventory, boosts her ad spend, and sees her biggest campaign of the year. With bank-free financing solutions, retailers like her operate with agility, not anxiety.

4. Delivery drivers: empowering the gig economy

Use case. A driver on a food delivery app needs to replace a phone and pay for a bike repair to stay active on the platform.

Carlos is a full-time delivery driver in Santiago. One weekend, his phone breaks. Without it, he can’t work. He looks for help but finds nothing available at his bank. He’s frustrated—and losing income.

Digital financing solution. The delivery app offers Carlos a microloan based on his delivery history. He accepts the offer, receives the funds in his digital wallet, and repairs his phone within hours. Repayment is deducted gradually from his future deliveries.

Benefits:

• Keeps drivers operational

• Increases delivery volume and reliability

• Builds informal credit history over time

For delivery apps, this isn’t just support—it’s infrastructure. Active drivers mean faster service, more orders, and better customer satisfaction.

Why segmentation matters

Each user group—marketplaces, restaurants, retailers, and drivers—faces unique financing barriers. The power of digital lending lies in its ability to segment users and personalize credit based on their data, behavior, and rhythm of work.

Key factors used in digital financing models:

• Sales velocity

• Transaction volume

• Account age and consistency

• Platform engagement

• Ratings and delivery quality (in gig economy)

This creates a model where capital is:

• Faster: No need for weeks of paperwork

• Smarter: Aligned with how the user actually earns

• Fairer: Based on actual performance, not exclusionary scores

What platforms gain from embedding digital financing

Beyond empowering users, embedded financing delivers tangible value for platforms:

• Revenue streams. Monetize credit through fees, interest spreads, or partnerships

• Loyalty. Financial support builds long-term user commitment

• Growth. Empowered partners grow faster, transact more, and stay longer

In LATAM’s competitive landscape, financial tools are no longer a nice-to-have. They’re a key differentiator.

Why R2?

At R2, we partner with leading platforms to design and deliver embedded financial products that align with each user’s behavior and business model. We:

• Integrate seamlessly with digital experiences

• Provide underwriting based on real performance

• Offer flexible terms that match industry realities

Whether your users are restaurant owners, marketplace sellers, couriers, or store operators, R2 helps unlock growth without relying on outdated financial systems.

Ready to power your ecosystem?

Learn how digital financing can strengthen your platform and accelerate partner success. Contact us or explore our partner solutions one-pager.

Rigid terms, long wait times, and outdated risk models leave too many promising businesses behind. In contrast, flexible financing—offered by fintechs and through digital platforms—is rapidly becoming the go-to growth solution across sectors like retail,logistics, and marketplaces.

This article explores how flexible financing compares to traditional credit, with real stories from entrepreneurs, industry-specific insights, and a breakdown of why this model is critical to SMB growth in 2025 and beyond.

Traditional bank credit vs. flexible financing: what's the difference?

When we talk about access to capital, it’s not just about getting a loan—it’s about how the process, terms, and structure of that loan impact the day-to-day operations and future potential of a business. The following comparison outlines the core contrasts between legacy credit systems and modern, flexible finance. It shows why traditional financing often excludes digital-first SMBs and why adaptable models are redefining the future of business growth in Latin America.

This side-by-side comparison highlights why traditional banking is often incompatible with the realities of growing businesses in LatAm. Retailers, couriers, and service providers need speed, simplicity, and financing that moves with them.

What is flexible financing?

Flexible financing refers to innovative funding models that adjust to how a business actually operates. Instead of imposing rigid repayment and underwriting requirements, these models meet the entrepreneur where they are. Key examples include:

• Revenue-based financing (RBF). This model provides businesses with upfront capital in exchange for a percentage of their future sales. Unlike a traditional loan, the repayment amount varies based on revenue. If sales dip, payments are lower; if sales increase, repayment is faster. There is no interest rate—just a flat fee added to the principal. RBF is particularly effective for seasonal businesses and digital merchants with consistent transaction flow.

• Embedded lending. Financing is offered directly inside digital platforms such as e-commerce marketplaces, logistics apps, or point-of-sale systems. Eligibility and loan terms are based on the user’s activity within the platform, such as volume of transactions, frequency of use, and payment behavior. This approach makes capital access effortless and hyper-relevant to each user’s operational context.

• Buy now, pay later (BNPL). BNPL solutions allow businesses to acquire inventory, raw materials, or equipment upfront while deferring payment over time. It’s commonly tied to supplier networks and helps businesses manage working capital without sacrificing supply chain continuity. BNPL tools are useful in both B2C and B2B settings, especially in retail, manufacturing, and wholesale distribution.

• Microloans and working capital tools. These are small, short-term funding options often accessed through mobile fintech apps or digital wallets. Microloans can cover everything from fuel for delivery drivers to repairs or short-term payroll. They are ideal for businesses with urgent needs and limited documentation, and repayment is usually automated through the same app that issued the funds.

These tools are designed for real-world volatility. If a business earns less one week, it pays less. If it earns more, repayment accelerates—making growth sustainable, not stressful

Ana’s story: scaling retail inventory in peak season

Ana runs a cosmetics brand that sells through a large online marketplace. Every holiday season, she sees a surge in demand—but in 2024, she didn’t have the capital to scale her inventory on time.

Her bank turned her down. She lacked two years of financial statements and didn’t have real estate as collateral. Even if she had qualified, the process would have taken at least a month—time she simply didn’t have during her busiest season. The urgency of the opportunity excluded her from a system designed for slower, more traditional businesses.

Through the e-commerce platform, she received a revenue-based financing offer. The funds landed in her account in 24 hours. Instead of fixed monthly payments, she repaid a small cut of her daily sales. No penalties. No stress.

With that funding, Ana increased her stock threefold and grew her seasonal revenue by 160%. Within three months, she had repaid the full amount.

Flexible financing didn’t just save the season—it helped her break into a new revenue tier.

Carlos’s fleet: empowering gig workers with embedded microloans

Carlos manages a network of 30,000 delivery drivers in Lima. He noticed that many of them were struggling to keep their bikes and phones in working condition. Replacing a tire or upgrading a phone could mean missing an entire week of work.

Banks wouldn’t even consider microloans of $100 or $300—especially for independent contractors.

Carlos integrated a fintech-backed embedded lending solution into the delivery platform in under a week, with no disruption to operations. Drivers could access microloans instantly based on their delivery history and repay them gradually from their earnings.

Drivers could access microloans instantly based on their delivery history and repay them gradually from their earnings.

Within two months, uptime increased, driver retention improved, and total order volume jumped by 22%.

Why flexible financing works for modern SMBs

Unlike traditional credit, flexible financing is:

• Data-driven: Approvals are based on real-time business activity—not outdated credit scores.

• Context-aware: Designed for industries with irregular revenue, like gig work, retail, or seasonal sales.

• Inclusive: Accessible to SMBs that operate informally or outside legacy financial systems.

According to Helmi Group, fintech lenders using transaction-based underwriting approve up to 60% more loans for SMBs in Latin America compared to traditional banks.

Industries leading the charge

Retail & e-commerce. BNPL tools for inventory, RBF for seasonal cash flow, short-term loans to support marketing campaigns.

Delivery & logistics. Microloans for vehicle repair, phones, or gas—repaid from weekly income.

Hospitality & food service. Embedded lending to fund off-season renovations or cover rising input costs.

Construction & home services. Flexible supplier financing and installment tools for materials.

Digital creators. Advances based on platform earnings or sponsorship contracts.

In all of these cases, the principle is the same: capital that follows your revenue, not rules written decades ago.

Why are platforms embracing embedded finance?

Digital platforms are becoming much more than marketplaces or tools—they’re ecosystems. By integrating financing directly into their products, they:

• Boost user retention

• Enable seller or partner growth

• Generate new revenue through interest or usage-based fees

For users, the experience is just as powerful. There’s no need to leave the app, prepare a pitch, or wait for approval. Financing becomes part of the journey, not a separate step.

R2’s role in enabling growth

At R2, we help platforms operating in Latin America offer seamless, embedded financing solutions tailored to their clients; such as SMBs or professionals using your platform to sell. We work across industries to:

• Design data-driven credit models based on real-time performance

• Align repayment with client revenue

• Deliver frictionless capital at the moment it creates the most impact

We don’t just help platforms grow—we help your ecosystem thrive.

Ready to scale without banks?

If your platform customers (sellers) need capital to grow, retain talent, or unlock new inventory, we’re ready to help. Explore more about the credit gap which is why embedded finance is transforming the lending landscape in Latin America with our one-pager.

Contact our team or email us at partners@r2.co to learn how embedded finance can power your platform’s growth.

This transformation is driven by necessity. From supply chain instability to rising inflation and the digitization of commerce, SMBs need smarter, faster, and more flexible financial solutions. According to the OECD, nearly half of SMBs in the region report difficulty accessing formal credit, and approximately 88% of firms are classified as microenterprises. The resulting financing gap demands targeted innovation, stronger partnerships— like R2—, and better use of technology and data.

Here are the five trends that are making that possible:

Embedded lending: enabling credit where it’s needed the most

Embedded lending is redefining how SMBs access capital. By integrating financial services directly into non-financial platforms, companies can now offer credit, or other services, white-labeled: within the very platforms SMBs or professionals already use on a daily basis. This digital and frictionless model removes the barriers of traditional banking and tailors financing to the real-time performance of businesses.

Embedded finance may allow higher approval rates via a seamless integration of financial services into everyday software and digital experiences. For example, a logistics software platform that enables a local distributor to access working capital loans based on delivery data is a practical case.

Why does it matter in LatAm?

• Many SMBs operate outside the formal banking system.

• Embedded solutions use real-time, granular data instead of legacy credit scores.

• Platforms become operating systems rather than just service providers.

This model enhances financial inclusion and supports digital-based lending in LatAm by assessing creditworthiness based on transaction flows, not paperwork.

Data-driven lending: unlocking smart and fast capital

In the past, lending decisions were based on outdated documentation, static credit reports, or collateral demands. Today, lenders use alternative data from e-commerce platforms, payment processors, point-of-sale systems, and micro-analysis using machine learning to evaluate risk.

This trend directly addresses the financial problems in digital SMBs:

• Many businesses lack formal documentation.

• Traditional credit scoring misses fast-growing, digital-first companies.

• Real-time data allows for dynamic and up-to-date credit models.

Fintechs are leveraging AI and machine learning to offer personalized credit terms, flexible repayment schedules, and pre-approved offers—all based on actual business activity. This is transforming underwriting and reducing default rates while increasing loan accessibility.

According to Helmi Group’s latest insights, fintech lenders using transactional data can approve up to 60% more SMB loans than traditional banks, with significantly faster turnaround times.

Rise of sector-specific financing platforms

One size doesn’t fit all in SMB financing. That's why specialized platforms are emerging to serve vertical markets: retail, agriculture, logistics, mobility, and more. These platforms understand the work flows, seasonality, and risks specific to each industry.

In Latin America:

• Retail platforms offer inventory financing tied to real-time sales data.

• Agrotech lenders provide loans based on crop cycles and satellite imagery.

• Food delivery and mobility platforms provide cash-advance, embedded wallets and instant payouts to microentrepreneurs and small businesses.

This is particularly useful in a region with complex financing challenges in LatAm, such as informality, economic volatility, and fragmented infrastructure.

According to the OECD's 2024 SMB Policy Index, the majority of businesses in LAC are microenterprises, and nearly 50% operate informally—creating unique credit and risk profiles that require contextual solutions.

Tailored financing leads to better product-market fit, lower risk, and greater adoption.

Strategic fintech partnerships: bridging the access gap

Traditional banks are often too slow or risk-averse to serve SMBs. But rather than compete directly, many fintechs are now partnering with established institutions or digital platforms to scale their reach.

These partnerships are a cornerstone of fintech trends 2025, where collaboration beats competition. Examples include:

• APIs that allow banks to integrate with gig economy platforms.

• Fintechs powering lending products for digital marketplaces.

• White-label solutions that embed credit into retail management software.

Such partnerships allow fintechs to focus on product innovation, while banks provide regulatory infrastructure and funding. The result: SMBs gain access to sophisticated financial tools without needing to interface with legacy systems.

For the millions of businesses that fall into the credit blind spot, these partnerships are not optional—they're essential.

Innovation through public policy & financial regulation

Regulatory bodies across LatAm are beginning to recognize the value of SMB-focused innovation. From sandbox programs to open banking frameworks, governments are building environments where digital finance can scale responsibly.

Key developments include:

• Mexico’s Fintech Law, which sets the foundation for digital financial services.

• Brazil’s open banking initiative, enabling data portability and competition.

• Chile and Colombia’s fintech registries and innovation hubs.

Additionally, the 2024 SMB Policy Index by OECD/CAF/SELA emphasizes that LAC governments should prioritize diversified financial sources, targeted SMB education, and alignment of financial inclusion policies with the digital transformation of small businesses. It also highlights that over 60% of SMBs still face barriers to accessing formal credit, despite representing 99.5% of the region’s business fabric.

Public-private collaboration is paving the way for scalable and compliant digital finance ecosystems, where SMBs can access capital without compromising security or compliance.

Conclusion: a new Era for SMB finance in LATAM

The landscape of SMB financing in Latin America is undergoing a historic transformation. From embedded finance and AI-driven underwriting to industry-specific lending and collaborative fintech models, the future is inclusive, fast, and tailored.

These 5 trends are not isolated—they’re interconnected. Together, they respond to long-standing financing challenges in LatAm and unlock real solutions for the financial problems in digital SMBs.

For digital platforms, investors, and policymakers, the opportunity is clear: build solutions around the realities of SMBs, not around the limitations of the traditional system.

And for SMBs themselves, the message is even clearer: your financial future no longer depends solely on banks. It lies within the platforms, tools, and partnerships that are transforming Latin America's fintech landscape.

Wondering how this could help your platform grow faster?

R2 enables platforms in Latin America to offer embedded loans to their merchants—under their own brand… without using their own capital nor taking on risk. We handle the credit, compliance, and operations so our partners can boost growth, increase retention, and unlock new revenue streams in weeks.

Discover how we can work together, email us at partners@r2.com.

Sources:

• IEBS. “¿Qué es Embedded Finance o Finanzas Integradas?”

• Helmi Group. “Fintech in Latin America: Trends and Opportunities 2023 Q4”

• OECD, CAF, SELA. “SME Policy Index: Latin America and the Caribbean 2024”

• World Economic Forum. “Embedded Finance: A Disruptive Force for Financial Institutions”

• ETA Events. “Latin America’s Fintech Revolution: Top 10 Trends Shaping the Future of Payments in 2025”

• América Digital.“Why Mexico Will Become the Next Fintech Capital of Latin America”

In 2025, embedded finance is not just a fintech trend, it is a business imperative, especially for companies operating in Latin America. The region's unique financial challenges and booming digital economy create the perfect storm for embedded finance solutions to thrive. But first, what exactly are we talking about?

What Exactly Is Embedded Finance?

According to IEBS, embedded finance refers to the integration of financial services such as payments, lending, insurance, or digital accounts directly into other (often non-financial) platforms. Thanks to open banking technologies and APIs, companies across industries — from e-commerce to healthcare — can offer financial products inside their own ecosystems. Customers no longer need to leave the platform to access these services; everything happens seamlessly in one place.

Imagine a small business launching an online store, accepting digital payments directly through the platform, and receiving a working capital loan to restock inventory — all without ever leaving the platform. That’s embedded finance in action.

Why Latin America Is the Perfect Storm for Embedded Finance Growth?

Latin America faces significant financing challenges. A vast number of SMBs struggle with access to traditional banking, even with ever more digitized sales and business operations. Financial exclusion is widespread. Traditional credit is slow, bureaucratic, and often out of reach for small players. Embedded finance offers a way around these problems.

1. Solving Financial Problems in Digital SMBs

Digital SMBs in LATAM face hurdles like limited credit history, volatile cash flows, and lack of tailored products. Embedded finance can analyze real-time platform data (such as sales, transactions, and customer activity) to offer microloans, flexible payment terms, or insurance. It's faster, smarter, and based on behavior rather than outdated credit scoring models.

Additionally, embedded finance enables SMBs to access financing without the traditional obstacles of paperwork, collateral requirements, and long waiting times. Digital platforms that integrate lending solutions can empower micro and small businesses to invest in inventory, expand operations, and improve cash flow.

2. Driving Meaningful Financial Inclusion

In regions where a large portion of the population remains underbanked, embedded finance opens doors. From digital wallets built into marketplaces to ‘Buy Now, Pay Later’ (BNPL) options at checkout, embedded solutions allow users to access financial products they might never have qualified for through traditional means.

Embedded finance also promotes economic empowerment by reaching populations in rural or underserved areas where traditional financial institutions have limited or no presence.

3. Creating Unparalleled Customer Experiences

Small business merchants stay loyal to platforms that offer comprehensive, convenient services. Embedded finance removes friction. No need for third-party apps. No tedious steps. Users transact, borrow, and insure directly within the ecosystem they trust.

Beyond transactional convenience, embedded finance enables platforms to build deeper emotional loyalty. Customers feel supported at critical financial moments, fostering stronger brand relationships.

4. Unlocking Substantial Revenue Opportunities

Platforms can earn commissions, fees, and additional revenue by embedding financial products. In a hyper-competitive digital economy, these incremental revenues are not just a bonus; they are becoming critical for survival.

Moreover, embedded finance allows companies to monetize user engagement better. Platforms become not just a place to shop or interact, but also hubs for financial empowerment.

5. Data-Driven Personalization

Embedded finance unlocks a treasure trove of data. Companies can use this to craft hyper-personalized financial solutions: dynamic credit limits, real-time insurance offers, personalized loan repayment schedules. This increases customer satisfaction and boosts conversion rates.

Leveraging AI and machine learning, platforms can predict customer needs with high accuracy, delivering financial products exactly when and where users require them.

Examples: Embedded Finance Transformations in LATAM

Real-world cases across Latin America highlight the power of embedded finance:

• A leading marketplace from Argentina integrates payment solutions, digital wallets, and lending services within its platform, empowering merchants and buyers.

• A major delivery app in the region allows users to make payments, transfer money, and access credit directly through its ecosystem.

• A popular mobility app enables drivers to receive instant payments and microloans to better manage their cash flow.

• A well-known superapp extends ‘Buy Now, Pay Later’ options and embedded insurance products during the checkout process, enhancing the customer journey.

These examples demonstrate how embedded finance directly addresses financing challenges in LATAM and transforms customer relationships.

Digital Lending in LATAM: Reinvented

Historically, lending in Latin America has been an uphill battle for SMBs and individuals alike. Traditional banks demanded collateral, maintained rigid approval processes, and charged high interest rates.

Embedded finance changes the lending game:

• Instant loan approvals based on platform activity and transaction history.

• Flexible repayment models tied to business cash flow.

• Credit tailored for freelancers, independent contractors, and small digital entrepreneurs — often without onerous collateral requirements.

Embedded lending is already helping thousands of digital SMBs in LATAM survive — and thrive.

This shift is democratizing access to capital, making it easier for microbusinesses, freelancers, and independent contractors to fund their ventures without relying on slow, risk-averse traditional institutions.

Fintech Trends 2025: Embedded Finance Leading the Revolution

Embedded finance stands out among the most powerful fintech trends in 2025. Global data backs this up:

• The embedded finance market is projected to reach over $148 billion in 2025.

• In Latin America, the fintech revolution is accelerating. A recent report highlights embedded finance among the top 10 trends shaping the future of payments in the region for 2025.

• According to the World Economic Forum, embedded finance is positioned as a disruptive force, reshaping financial institutions globally, with expectations that up to 30% of banking revenues will stem from embedded models by 2025.

Key sub-trends fueling this growth include the explosion of digital wallets, rise of embedded insurance (insurtech), and expansion of B2B embedded lending models for SMBs.

As more platforms evolve into “financial ecosystems,” users will expect seamless, invisible finance experiences embedded into every transaction.

Financing Challenges in LATAM: An Opportunity, Not a Barrier

While financing challenges in LATAM are real — limited banking access, economic volatility, distrust in financial institutions — they also represent a massive opportunity. In Latin America, there are over 25 million SMBs, which collectively account for around 60% of formal employment. However, more than 50% of them lack access to formal credit, limiting their growth potential and resilience.

Companies that embed finance smartly into their ecosystems can:

• Reach untapped markets.

• Build stronger customer loyalty.

• Create data-driven, high-margin financial products.

• Support regional economic development by fostering entrepreneurship.

Regulatory bodies are also beginning to recognize the importance of embedded finance, working to enable more secure, accessible, and inclusive financial ecosystems across the region.

Ready for your Embedded Finance Journey?

As Latin America's digital economy continues its growth, embedded finance represents one of the most significant strategic opportunities for companies across industries. Whether you're seeking to solve critical financing challenges for your customers — like enabling restaurant partners to access funding for bulk inventory or helping e-commerce sellers smooth out cash flow gaps between sales and supplier payments — create new revenue streams, or build greater platform loyalty.

At R2, we specialize in empowering companies across Latin America to design and implement embedded finance capabilities tailored to their unique business models. We operate through a single, deep integration to seamlessly power financial products and services within their (oftentimes, non-financial) platforms — from e-commerce and delivery apps to POS systems. This allows platforms’ small business owners to access financial services as part of their everyday challenges, like managing inventory, marketing or working capital.

Our embedded model also ensures that the financial solutions delivered through our partners are accessible, relevant, and aligned with each user’s real capacity and context. That approach not only enhances the user experience but also helps democratize access to financial tools for SMBs throughout the region.

Let’s start the conversation today at partners@r2.co or request a demo here to begin your embedded finance journey.

Sources:

• IEBS. "¿Qué es Embedded Finance o Finanzas Integradas?" IEBS Business School Blog. Accessed 2025.

• Dock Tech. "Embedded Finance: la revolución de los servicios financieros integrados.

• BBVA. "¿Qué son las Embedded Finance y cómo están revolucionando los servicios financieros?

• Weavr. "The Ultimate Guide to Embedded Finance.

• LATAM Fintech. "Embedded Finance: el fenómeno que está transformando empresas en bancos.

• Finerio Connect. Embedded Finance: ¿qué es y para qué sirve?

• World Economic Forum. "Embedded Finance: a disruptive force for financial institutions.

• Prosperas. Desafíos y Oportunidades en la Banca de América Latina
  

Esto impacta en que miles de restaurantes registrados en la plataforma pueden acceder a capital de trabajo en minutos, directamente desde la app Uber Eats Manager, sin papeleo ni procesos complejos. Este financiamiento está diseñado para adaptarse a sus ventas diarias, con pagos automáticos que se ajustan a su flujo de ingresos. Es una experiencia simple, transparente y pensada para negocios que quieren crecer.

Chile es el segundo país donde lanzamos este modelo junto a Uber Eats, después de México. La oportunidad de trabajar con uno de los actores más relevantes del ecosistema digital en el país refuerza nuestra visión: el futuro del crédito en América Latina no pasa por abrir más sucursales, sino por integrarse de forma invisible y eficiente en la economía digital.

Cada vez que un restaurante accede a uno de nuestros créditos, está invirtiendo en su operación: comprando inventario, contratando personal, abriendo nuevos horarios. Sabemos que detrás de cada decisión de financiamiento hay una apuesta por crecer, y estamos orgullosos de ser parte de esa historia.

Este lanzamiento es otro paso en nuestro compromiso por construir infraestructura financiera que genere impacto real en la región. Seguimos avanzando para que el acceso al crédito deje de ser un privilegio y se convierta en una herramienta cotidiana para quienes hacen crecer nuestras ciudades.

This means that thousands of restaurants and grocery stores across the country can now access working capital directly within the Uber Eats Manager app: no paperwork, no complex processes. Just fast, flexible financing designed to move with their business. Repayments adjust automatically based on their sales, so they can focus on growing, not managing debt.

Chile is the second country where we’ve launched this model with Uber Eats, following a successful rollout in Mexico. For us, this is more than a market expansion, it’s a clear step forward in our mission to rewire credit access across LatAm.

Every time a merchant chooses to take one of our loans, it’s a decision to grow: hiring new staff, buying inventory, investing in their service. We’re proud to provide the capital and infrastructure behind those decisions.

This launch is another building block in our vision for embedded finance in LatAm, one where access to capital is seamless, fair, and aligned with the real-time rhythm of local businesses.

Perú es el más reciente mercado en nuestra creciente colaboración con inDrive, tras implementaciones exitosas en México (2023) y Colombia (2024). Para muchos trabajadores independientes, obtener financiamiento sigue siendo un desafío debido a la falta de historiales crediticios formales y los estrictos requisitos bancarios. Nuestra solución de préstamos embebidos resuelve este problema al ofrecer un proceso transparente y accesible. Los pagos de los préstamos se deducen automáticamente de las ganancias por viaje y están limitados a menos del 10% de cada trayecto, asegurando la estabilidad financiera de los usuarios.

Lo que nos diferencia es nuestra capacidad de utilizar datos en tiempo real sobre el desempeño de los conductores en lugar de depender de puntajes de crédito obsoletos. Este enfoque nos permite ofrecer oportunidades de financiamiento a miles de personas que han sido históricamente excluidas por el sistema financiero tradicional. Nuestra tecnología garantiza una experiencia fluida y sin fricciones, con desembolsos de préstamos que ocurren directamente dentro de la aplicación de inDrive.

Esta expansión representa un paso más en la misión de R2 de desarrollar soluciones financieras que desbloqueen oportunidades económicas, y nos enorgullece impulsar la estrategia fintech de inDrive en América Latina.

Mientras seguimos escalando, mantenemos nuestro compromiso de empoderar a los trabajadores de plataformas con el capital que necesitan para prosperar. ¡Estén atentos para más novedades mientras seguimos impulsando la inclusión financiera!

Peru is the latest addition to our growing partnership with inDrive, following successful implementations in Mexico (2023) and Colombia (2024). For many independent workers, securing financing remains a challenge due to the lack of formal credit histories and strict banking requirements. Our embedded lending platform solves this by offering a transparent and accessible process. Loan repayments are automatically deducted from trip earnings, capped at less than 10% per ride, maintaining financial stability for users.

What sets R2 apart is our ability to leverage real-time driver performance data rather than outdated credit scores. This approach enables us to provide financing opportunities to thousands of individuals who have been historically overlooked by traditional institutions. Our technology ensures a seamless, frictionless experience, with loan disbursements occurring directly within the inDrive app.

This expansion is another step forward in R2’s mission to build financial solutions that unlock economic opportunities and are very proud to help power inDrive’s fintech strategy across Latin America.

As we continue to scale, we remain committed to empowering platform workers with the capital they need to thrive. Stay tuned for more as we drive financial inclusion forward!

A través de esta alianza, los restaurantes pre-aprobados obtienen fácil acceso a opciones de financiamiento flexibles adaptadas a sus necesidades comerciales, directamente en el Uber Eats Manager.

El potencial de la alianza es prometedor debido a que en los primeros meses, R2 pre-aprobará ~$1,000 millones de MXN en ofertas de préstamos para negocios calificados, con capacidad de aumentar conforme nuestros modelos de crédito entrenados ​​por machine learning evolucionen.

Como beneficio adicional, los restaurantes elegibles reciben hasta el 5% del monto de su préstamo como créditos de marketing en Uber Eats. Esta característica única ayuda a impulsar el crecimiento de las ventas de los restaurantes.

Apalancando la infraestructura de R2, todo el proceso de financiación se integra perfectamente en la plataforma para los restaurantes, Uber Eats Manager. Los restaurantes en Uber Eats pueden explorar múltiples opciones de financiamiento y asegurar financiamiento el mismo día con solo unos pocos clics. Creemos que esto establece el nuevo estándar en cuanto a velocidad y conveniencia del financiamiento empresarial en América Latina.

A través de R2, Uber Eats ahora puede escalar rápidamente servicios financieros que cumplen con las normas locales en múltiples mercados con una única integración a nuestra API. Si bien este producto se ofrece primero en México, nos estamos preparando para lanzarnos en más mercados latinoamericanos, brindando servicios financieros a propietarios de restaurantes y otros negocios con mucho potencial que siguen siendo ignorados por las instituciones financieras tradicionales.

Through this partnership, pre-approved restaurants gain instant access to flexible financing options tailored to their business needs, directly on Uber Eats Manager. The partnership’s potential is promising: R2 will pre-approve $1 billion MXN in loan offers for qualifying businesses in the upcoming months, with capacity to increase as our ML-powered risk models evolve.

As an added benefit, eligible restaurants receive up to 5% of their loan amount as marketing credits on Uber Eats. This unique offer helps drive restaurants’ sales growth, accelerating a virtuous cycle that can qualify them for additional financing through R2.

Leveraging R2's infrastructure, the entire financing process is seamlessly integrated into the Uber Eats Manager platform. Restaurants on Uber Eats can explore multiple financing options and secure same-day funding with just a few clicks. We believe this sets the new gold standard in speed and convenience of business financing in Latin America.

Through R2, Uber Eats can now rapidly scale locally-compliant financial services across multiple markets with a single API integration. While this partnership launches first in Mexico, we are gearing to launch in additional Latin American markets, providing foundational financial services to more hard-working small business owners previously overlooked by traditional financial institutions. Stay tuned - we’re just getting started.

Endeavor Catalyst, Y Combinator, and Gradient Ventures also participated in the equity round. The round is an extension of R2’s Series A completed in 2022. The debt facility will be used to fund R2’s growth in Chile and complements the US$100 million debt facility raised last year for its Mexican operation.

R2 enables platforms such as payment processors, marketplaces, ride-hailing apps, and vertical SaaS with embedded financial services for their small and medium businesses. Since inception in 2020, R2 has partnered with Rappi, Clip, PayU and inDrive, among others, to offer financing to more than 47,000 businesses across Mexico, Chile, Colombia, and Peru. The financial infrastructure company uses machine learning-based underwriting on transactional data, transforming the way small businesses in Latin America access capital. R2 intends to leverage the new funds to accelerate product development initiatives to integrate more platforms and invest in computing power to train more AI-based models.

“The equity investment from Hi Ventures and Cometa is a testament to our strong growth, best-in-class risk management, and the financial inclusion generated through our seamless, API-first integrations with Latin America’s leading platforms”, said Roger Larach, R2’s Co-Founder and CEO. “The capital enables us to double down in our core revenue-based financing product, while also building towards the end goal, which is to provide a suite of financial services - lines of credit, credit cards, debit accounts, instant payouts, and insurance - to users at the point of need, right on the platforms they use on a daily basis”.

Hi Ventures, Cometa, and Endeavor Catalyst join R2’s list of investors which include Gradient Ventures, General Catalyst, Y Combinator, Femsa Ventures, and Prosus Ventures, among others.

About R2

Founded in 2020, R2 enables payment processors, POS systems, vertical SaaS platforms, marketplaces and ride-hailing apps to provide financing to small and medium businesses in Latin America. Via its APIs, R2 provides an end-to-end lending experience to technology platforms so that they provide capital to businesses without taking on any risk. R2 works with some of Latin America's leading technology companies and is backed by Gradient Ventures, General Catalyst, Cometa, Hi Ventures, Y Combinator, 166 2nd, Femsa Ventures, Prosus Ventures, Endeavor Catalyst, among others. For more information, visit r2.co.

About Hi Ventures

Hi Ventures is on a mission to support Latin American founders with global ambitions. Founded in 2012, Hi is the leading AI-focused VC in the region. It’s recognized as a highly selective, high-value-added, and high-impact investor and has delivered the highest realized returns in Mexico. It’s the only major VC in the region that has distributed more capital than it has called, driven by successful exits, most notably that of Cornershop to Uber and Flink to Webull. For more information visit hi.vc

About Cometa

Cometa is a venture capital firm that invests in early-stage technology companies serving Spanish-speaking markets. Cometa’s portfolio of companies includes Bitso, Cabify, Kueski, Simetrik, Prometeo, and Territorium, among others. Learn more at https://cometa.vc

About Community Investment Management

Community Investment Management (CIM) is an institutional impact investment manager that provides strategic debt capital to demonstrate and scale responsible innovation in lending. CIM is dedicated to supporting organizations that drive positive change and foster financial inclusion, economic growth, and social impact. For more information, visit cim-llc.com.

"Préstamos para ti" ofrece el capital necesario a los restaurantes Aliados de Rappi directamente a través de la aplicación de Rappi, impulsando su crecimiento y expansión.

El impacto de "Préstamos para ti" ha sido significativo y ha superado las expectativas iniciales. El programa ha desembolsado más de 2,300 préstamos equivalentes a millones de pesos en más de 200 municipios de México, impulsando considerablemente el sector restaurantero del país.

Los restaurantes afirman haber utilizado estos préstamos para diversos fines que les ayudan a prosperar en esta economía desafiante, incluyendo marketing y captación de nuevos clientes, adquisición de inventario y suministros, mejoras de equipos, mejoras de las instalaciones y expansión del negocio. Además, agregan, que la forma de pago es sencilla, ya que se da a partir de un porcentaje de retención de las ventas que se generan en la plataforma.

De cara al futuro, Rappi y R2 mantienen su compromiso de empoderar a los restaurantes mexicanos. A través de "Préstamos para ti", esperan desembolsar más de 4,000 préstamos en el próximo año, impulsando aún más a la industria.

"Préstamos para ti" provides needed capital to Aliados, Rappi-partnered restaurants, directly through the Rappi app, fueling their growth and expansion.

The impact of "Préstamos para ti" has been substantial and has exceeded our expectations. The program has disbursed over 2,300 loans totaling in millions of pesos across more than 200 municipalities in Mexico, significantly boosting the country's restaurant sector.

Restaurants have invested this capital for different purposes, helping them thrive in today’s challenging economy: from marketing and customer acquisition to inventory and supplies acquisition, equipment renewals, facility upgrades and business expansion. In addition, many Aliados emphasize that the payment method is quite convenient, since a percentage is automatically deducted from their sales generated on Rappi.

Looking ahead, Rappi and R2 remain dedicated to empowering Mexican restaurants. Through "Préstamos para ti," the two companies expect to disburse over 4,000 loans in the next year, further propelling the industry’s growth.

Juntos, hemos lanzado "Crédito Emprende", una solución financiera integral diseñada específicamente para usuarios de Klap POS. Esta alianza tiene como objetivo brindar a los comercios acceso rápido y flexible al capital, impulsando su crecimiento y desarrollo empresarial.

"Crédito Emprende" ofrece capital de trabajo con cada préstamo desembolsado, lo que es útil para apoyar a los comercios a invertir en sus negocios y crecer sus operaciones, impactando positivamente en la inclusión financiera y la creación de nuevos empleos en Chile. De cara al futuro, estamos comprometidos a trabajar junto a Klap para colocar más de 7,000 créditos en los siguientes 2 años.

¡Nos entusiasma asociarnos con Klap y ayudar a las empresas chilenas a prosperar con "Crédito Emprende"!

Together we launched "Crédito Emprende", a comprehensive financial solution designed specifically for Klap POS users. With each loan, we will be supporting small businesses with working capital, which many use to invest in expanding their operations. This alliance aims to empower small businesses with fast and flexible access to capital, fueling their growth and development.

Since our launch in late June 2024, the program's success has surpassed expectations. Looking ahead, we're committed to working alongside Klap to originate more than 7,000 loans in the next 2 years.

We're excited to partner with Klap and help Chilean businesses to thrive with "Crédito Emprende"!

Francisco's journey with R2 began in 2021 when he used his first loan to purchase inventory and expand his offerings, which resulted in an increase in sales. He continued to reinvest in his business with subsequent loans from R2. Despite starting in a small area equivalent to a parking spot, Francisco's dedication and hard work enabled him to expand his store to the size of a mini market, with a second floor fully dedicated to storing his inventory. As a result, monthly sales at Miscelánea Miranda have increased an impressive 400%.

R2's Head of Customer Operations, Natalia Calle, shared, "We are thrilled to have supported Francisco's business since June 2021. He’s had 5 loans with us, totaling more than USD $40K, which helped him continue to grow his business."

With R2's embedded lending solutions, Miscelanea Miranda was able to access the financing it needed quickly and seamlessly, without having to go through a lengthy and complicated application process. In gratitude for R2's support, Francisco thanked R2  “for helping Miscelánea Miranda to keep moving forward. Thanks to your support, my business has grown, and I want to continue growing with your help."

At R2, we're thrilled to have been able to help Miscelanea Miranda achieve their growth goals. We believe that embedded lending is the future of small business financing, and we're committed to providing innovative solutions that make it easier than ever for SMBs to access the financing they need to succeed. If you're interested in learning more about R2's embedded lending solutions and how they can help your business grow, we encourage you to get in touch with us today.