R5 Secures Investment to Expand Credit Portfolio

Colombian fintech company R5 has closed an investment deal led by UK-based fund Lendable. The fund is known for its focus on generating impact through fintechs with a track record in creating inclusion and sustainability.

Expanding Credit for Used Car Purchases

The investment will be used to increase the issuance of loans for the purchase of used cars, allowing individuals to secure a vehicle through a loan. Pablo Armida, co-founder of R5, expressed excitement about the collaboration with Lendable. He said the capital will allow R5 to continue its mission to positively impact more Colombians by helping improve their quality of life.

Iñaki García, Head of Latin America Investments at Lendable, echoed this sentiment. He stated that Lendable believes the fusion of technology and finance can unleash a world filled with more opportunities and economic equity.

Lendable’s Role in the Investment

Lendable is a credit provider for some fintechs in emerging and frontier markets. It promotes access to financial solutions for underserved or unbanked populations. Based in the UK, the company has granted more than $350 million in credit to fintechs in over 14 countries.

Lendable believes that technological solutions can create a more inclusive and sustainable planet, which is why it works with fintech companies in Africa, Latin America, and Asia that make a real difference for people.

In 2022, Lendable decided to do more for sustainability and is in the process of launching a new sustainable finance product, aiming to generate an impact on mitigation and adaptation.

R5’s Impact on Colombians

Since its foundation in 2018, R5 has impacted more than 1.5 million Colombians by offering possibilities to obtain credits to fulfill their dreams.

This investment round was preceded by an announcement in 2022 when the company received a round of capital led by Global Founders Capital, Magma Partners, Carao Ventures, Accion Venture Lab, and Endeavor Catalyst. The objective was to increase the workforce while boosting the issuance of credits up to five times compared to 2021.