Community Investment Management provided a $100M warehouse debt credit facility to Latin American fintech startup R2.
The startup aims to use the proceeds "to get to a new stage as a leader in embedded lending, reducing the financing gap for small and medium companies," per co-founder Roger Larach.
- Fintech R2 provides revenue-based loans and lending infrastructure to SMEs.
- The startup claims to have disbursed nearly $20M to six million SMEs in the region.
- R2 takes back part of the revenue as repayment towards the loans, helping the firm curb delinquencies.
- Notable clients include Clip and Frubana.
- The slump in tech valuations and rising interest rates have made it difficult for companies in the region to avail credit facilities.
- "Banks and underwriters serve small merchants even less" during economic downturns, giving R2 the opportunity to cater to the growing needs of SMEs in the region, says Larach.
