The Colombian fintech R5 announced it raised a $7M funding round led by Global Founders Capital. Magma Partners, Carao Ventures, Accion Venture Lab, and Endeavor Catalyst also participated in the round.
Vehicles are one of Latin Americans’ main assets, and minimizing costs around them is essential for their financial health. The startup uses Artificial Intelligence to offer customers fast, low-cost, and fair financial products for vehicles. As Fernando Sucre, CEO and founder of R5 explained,
“We have stood out for being an insurance and credit company that, supported by technology, designs fast, affordable, and fair financial products. That is why every product we create aims to improve at least one of the five financial dimensions: increase income, reduce expenses, increase assets, reduce liabilities and protect people from unexpected accidents.”
The company offers three products: a free investment credit product with vehicles as collateral, a credit solution for purchasing used vehicles that provides loans at preferential rates, and the digital SOAT.
By bringing the SOAT(the Compulsory Traffic Insurance) to the digital world, R5 created a pioneering product in Colombia. The fintech R5, which could also be considered an insurtech, allows customers to receive exclusive discounts on the purchase of this insurance.
Very few high-growth startups record annual profits in the first three years of operation, and R5 reached this milestone as a young company.
“We are proud of the growth we have achieved over the last three years. It was a time during which we reached more than 1 million customers in Colombia, who saved more than 20 billion pesos on their SOAT. In addition, in our line of credit products, we project to close the year with sales levels five times higher than those recorded during 2021,” said Fernando Sucre.
