Latin American Fintech R2 Announces US$9 Million Equity Round and a New Debt Facility for up to $50 Million
Mexico City - November 28, 2024 - R2, Latin America’s leading embedded finance platform, today announced that it has secured an investment round of US$9 million from Hi Ventures and Cometa in addition to a debt facility for up to US$50 million with Community Investment Management (“CIM”).
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.