IBOS member Santander has recently announced that the Group’s venture capital fund, Santander InnoVentures, has invested into a55, a Latin American income-secured alternative small and medium-sized enterprise (SME) lender.
Since launching in 2014, InnoVentures has invested in over 30 companies, making it one of the most active bank-backed fintech corporate ventures in the world. Additionally, this is its fourth investment in Latin America.
a55 was founded in early 2018 and provides solutions in the alternative lending space, offering revenue-backed credit lines to companies with recurring revenue. It aims to become the financing platform for service-based companies in Latin America, starting with software-as-a-service (SaaS) businesses and has recently launched operations in Mexico. The company underwrites SMEs through a technology platform connecting bank accounts, escrow solutions, billing, payment means and credit intelligence.
a55’s technology solutions include, for borrowers, a credit monitoring dashboard, an insights section on revenue and cost metrics, an integrated cash flow covenant management system and escrow and revenue lock up tools to redirect a portion of the borrowers’ cash flows.
Santander InnoVentures is Santander Group’s corporate venture capital fund. It invests in fintech startups and adjacent verticals to accelerate their growth, helping entrepreneurs and their teams, and supporting them with capital, scale and Santander’s expertise.
Read the full press release, via Banco Santander, here.