From cash to credit: How Morado empowers Latin America’s beauty industry

This interview is the second in a series spotlighting the ten finalists of the WeXchange Forum 2024. 

In this conversation, we speak with Angela Acosta, Founder and CEO of Morado.

Angela began her career at Rappi working in various roles that ignited her passion for entrepreneurship and inspired her to start her own company. Two years ago, she left Rappi to start Morado, a fintech company focused on supporting beauty businesses in Latin America.

This interview explores Angela’s entrepreneurial journey and the impact Morado is making on the beauty industry.

From Rappi to starting an entrepreneurial journey

I have a degree in Business Administration from CESA and later pursued advanced studies at EU Business School in Spain, where I graduated Cum Laude.

A few months ago, I completed an entrepreneurship course for CEOs at Stanford University on a scholarship.

My professional journey began over eight years ago in Colombia as part of the early team at Rappi. Starting as an intern, I advanced to Vice President, gaining experience in sectors like CPG, supermarkets, and fintech through Rappi Bank. During my time there, I witnessed Rappi grow from 60 to 4,500 employees.

This experience fueled my passion for solving problems through technology. Two years ago, I founded Morado. Although I’m a solo founder, I’m supported by an incredible team, including several colleagues from my Rappi days, who are now my partners in business and life.

Recognizing the beauty industry’s untapped potential

While I enjoyed my time at Rappi, I wanted to create a greater impact. During my eight years there, I worked with mentors who believed in me and allowed me to grow. When I looked at other women in similar situations, I realized the difference between their success and mine often came down to access to opportunities. This fueled my desire to level the playing field.

I took a course and became a certified manicurist. This experience gave me firsthand insight into the struggles faced by many women in the industry. My classmates, full of entrepreneurial spirit, often voiced their frustration over the lack of capital to expand their services.

That was my “aha” moment. I saw an opportunity to build a platform that could empower women in the beauty industry by providing the financial tools and support they needed to succeed.

The beauty industry, with its predominantly female workforce, felt like the perfect place to start. I knew that by providing access to capital and guidance, we could empower these women to take control of their businesses and their lives.

Morado, a financial ally for beauty professionals

Morado is a fintech company and a financial ally for beauty businesses in Latin America. If you’re a hairdresser and need supplies like shampoo or nail polish, you can order them through Morado’s platform, and we’ll finance the purchase for 30, 60, or 90 days.

Our goal is to say “yes” to every business. We assess risk using both traditional financial information and non-financial data, such as the number of employees, business location, inventory levels, and client appointments.

This approach allows us to support informal businesses without traditional credit histories, including those operating from homes. We start lending smaller amounts, on average $820 and increase financing as businesses demonstrate their ability to repay. We also guide clients on purchasing products based on market trends and the behavior of similar businesses in their area, helping them optimize inventory.

Insights from supporting the beauty industry

We’ve learned that the beauty industry is highly cash-dependent because traditional finance has overlooked its needs. We’re changing this by offering flexible financial solutions tailored to their unique challenges.

Over 72% of businesses we work with receive their first credit through Morado. Additionally, over 50% don’t have bank accounts, so we facilitate transactions directly with brands.

Our impact extends beyond financial support—it’s about empowering women to take control of their finances. We’ve seen many inspiring stories of women achieving independence, supporting their families, and pursuing their dreams through Morado.

Our goal is to grow our community from 30,000 to 1,000,000 businesses. We’re focused on expanding our reach and impact within Colombia and eventually into Mexico.

Connecting with Morado

Visit Morado’s website at http://www.moradocolombia.com/ or connect with Angela on LinkedIn.