The Colombian fintech Mezubo announced a $5.5M seed funding round led by Canary Ventures and Dila Capital.
Mezubo is a credit platform that offers customer financing for the purchase of used cars. The platform received over 20,000 credit applications in 2021, demonstrating the high demand for this type of financing.
An estimated 80% of used car sales in Colombia occur between individuals, rather than through dealerships.
“This means that used car sales happen anywhere and at any time, and financing via traditional channels is not scalable,” said Nicolás Pardo, co-founder of Mezubo.
In less than a year since launch, the fintech Mezubo had already received more than 20,000 applications.
“This is why Mezubo is entering this fragmented market with digital solutions – to offer used car buyers financial products specifically tailored to this type of transaction, in an easy, fast, and trustworthy way,” Pardo continued.
With the new funding the fintech will now scale operations in Colombia and expand to other countries in the region. Mezubo is also looking to make new talent hires, strengthen marketing strategies, and continue to improve the product and technology.
“From our first conversations, Nicolás and Juan impressed us with their skill and vision for the used car market. We believe that these traits, coupled with their professional backgrounds, make Mezubo a great business and one with the potential to have a great impact in the region,” said Marcos Toledo, Managing Partner at Canary.
Mezubo fintech expects to increase its 2021 growth five-fold in 2022. The fintech will continues to bring innovation to the fragmented and informal P2P used car marketplace across Latin America.
