R5, a Colombian provider of financial technology (fintech) and insurance technology (insurtech) services, recently raised USD 7 million in an investment round led by Germany-based Global Founders Capital. Also participating were US-based Accion Venture Lab, Costa Rica-based Carao Ventures, US-based Endeavor Catalyst and Chile-based Magma Partners. Neither the breakdown of the investment by investor nor the sizes of the stakes taken have been released.
R5 harnesses artificial intelligence to issue car insurance and loans using vehicles as collateral in Colombia. The loans can be used to purchase vehicles or leverage owned vehicles to free up cash for purposes such as business investment and home improvement. Fernando Sucre, CEO of R5, said, “We are very proud of the growth rates achieved throughout the past three years. We’ve already reached over 1 million customers in Colombia, saving them more than COP 20 billion [USD 5.3 million] on their SOAT [insurance]. As to our loans vertical, we plan to close 2022 with five times the disbursement volumes achieved in 2021.”
Global Founders is a Germany-based investor in early-stage companies. It has 18 offices in the Americas and Eurasia. The firm announced its first fund in 2013 and its second in 2017. The total volume of the funds is USD 1.5 billion.
By Sheen Gupta, Research Associate
Sources and Additional Resources
Accion press release
https://www.accion.org/r5-a-colombian-fintech-startup-offering-financial-solutions-around-vehicles-raises-7-million-in-its-latest-financing-round
R5 homepage
https://www.grupor5.com/
Global Founders Capital homepage
https://www.globalfounderscapital.com/
Accion homepage
https://www.accion.org/
Carao Ventures homepage
https://www.caraov.com/
Endeavor homepage
https://endeavor.org/
Magma Partners homepage
https://magmapartners.com/
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