The Mexican fintech Arrenda announced it raised $26.5M in a pre-seed round that included debt and equity financing. The round was led by Fasanara Capital, with participation from Kube Ventures, ODX, Toehold Ventures, Wharton Fintech, Lightspeed Venture Partners, Scout Fund, PRMM Real Estate and leading angel investors.
Arrenda is a fintech that provides financing through financial factoring to property owners in Latin America. Francesco Filia, CEO and CIO of Fasanara Capital, explained:
“Arrenda is the first fintech startup to offer independent income-based financing to property owners in Mexico, and is on a mission to develop a comprehensive digital financial services platform that solves trust and liquidity issues between landlords and tenants in the region.”
This fintech is solving the challenges of the real estate market transactions in Latin America by creating a financial operating system for tenants and landlords. This market has an estimated value of $400B dollars a year in leasing transactions and a growth of 5% CAGR.
Arrenda also launched its flagship product called “Adelanta”. With this product, the startup provides financing thanks to financial factoring based on the future income of property owners. This is executed through Arrenda’s proprietary algorithm, which allows property owners in Mexico to advance up to one year’s rent payments.
With the new funding, Arrenda is planning to enter Mexico’s largest cities and establish distribution channels through partnerships with real estate investment groups, brokers, and property management companies.