Monday, April 15, 2024

Avista secures $22.5M in debt to lend to the aged in Colombia

Colombian fintech Avista raised $22.5 million in debt to spice up lending to the aged in South America.

This month, the fintech – one of many few solely targeted on the “silver financial system” – introduced it had secured a mortgage facility from Accial Capital, a fund sometimes targeted on fintech lenders in rising markets.

Based in 2019, Avista caters to shoppers in rural areas and smaller-sized cities in Colombia. They declare they market loans to residents with out formal banking data and Colombians with excellent debt at banking establishments.

The corporate mitigates threat by guaranteeing the borrower collects a pension or a month-to-month wage. Repayments might be deducted from the pension allowance or payroll. Generally, payroll lending constitutes a safer lending phase when in comparison with unsecured loans comparable to bank cards.

Increase the portfolio

The corporate has mentioned that the brand new funding would enable it to develop its portfolio, with the objective of $100 million in loans this 12 months. Most of them ought to go to the retiree inhabitants, the corporate acknowledged.

“This debt financing for $22.5 million will assist us in our mission to enhance the monetary inclusion of the aged, bringing liquidity to 1000’s of Colombian households,” Martin Restrepo, co-founder at Avista, mentioned.

Avista logo
Avista provides digital banking merchandise round payroll and pension.

Avista lends to prospects of as much as 84 years of age, with loans starting from the equal in pesos of $200 to $30,000. However its clientele goes past the so-called silver financial system. It additionally lends to cops and lecturers.

“Avista’s method to extending credit score to a typically ignored phase deepens monetary inclusion throughout Colombia,” Accial Capital mentioned on social media.

Accial isn’t any stranger to LatAm fintechs

The fund isn’t any stranger to Latin American lending fintechs. Not too long ago, it has additionally introduced a $90 million debt financing line for Clara, a Mexican fintech that targets small and medium-sized companies within the nation.

Over the previous two years, Accial has invested greater than $32.5 million in debt amenities in Avista, together with this just lately introduced debt issuance, co-founder Restrepo instructed Forbes. Avista stories it has tripled its portfolio from $55 million to $160 million up to now two years. The corporate hopes to finish 2023 with a portfolio of $210 million.

Colombia’s fintech ecosystem has been rising persistently up to now few years. In line with the Inter-American Growth Financial institution, it’s the third-largest ecosystem within the area. It accounts for 11% of all monetary expertise firms within the space, with 279. That’s up from simply 84 in 2017.

  • David Feliba

    David Feliba is a Latin American monetary and enterprise journalist. He stories fintech, banking, and financial information for world information organizations. His work consists of interviews with senior executives, cupboard members, and policymakers throughout the area.

    Over the previous years, David has reported from a number of areas within the Americas. His options have been revealed in main world media comparable to The Washington Put up, The Monetary Instances, Americas Quarterly and S&P World information. He lives in Buenos Aires.

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