Ziff Acquires Digital Loan Company Arrenda

Published about 2 months ago

Ziff, a leading provider of financial solutions in Mexico, has officially acquired digital lending company Arrenda. This strategic move aims to significantly strengthen Ziff’s credit offering and support the commercial real estate market, valued at $9.23 billion, according to a study by Mordor Intelligence.

Enhancing Financial Solutions for SMEs

Arrenda, founded in 2022, is known for developing an innovative financial product that subscribes businesses with recurring revenues and finances them up to 36 months of future income. The acquisition of Arrenda’s technology will enhance Ziff’s current financial platform, expanding its market presence across Mexico.

Ziff founder, Gerardo Name, highlighted the strategic opportunity behind the acquisition. He stated that integrating Ziff’s current lending infrastructure with Arrenda’s cutting-edge technology will enrich their product offering and enable entry into new market sectors. By the end of 2027, Ziff aims to place one billion Mexican pesos in SMEs, driving their growth across Mexico.

Addressing Credit History Issues

According to a joint study by INEGI and CNBV, the 2021 National Survey of Company Financing (ENAFIN), a lack of credit history is one of the main reasons for rejecting a business loan application in Mexico. This problem is particularly acute among SMEs, which face a financing gap of $163 billion, as reported by the SME Finance Forum.

To address this gap, Ziff has pioneered a financial model based on recurring income, providing liquidity to businesses by financing up to 36 months of their accounts receivable.

Arrenda’s Founder Joins Ziff’s Executive Team

Joe Merullo, founder and CEO of Arrenda, will join Ziff’s executive team as Chief Technology Officer. Merullo brings market knowledge and a global perspective informed by years of experience in the fintech ecosystem.

After the acquisition, Ziff plans to scale the distribution of Arrenda’s main product, Adelanta, a financing instrument for homeowners based on their current rental contracts. Arrenda’s extensive network of over 9,000 real estate advisors, known as Arrenda Partners, is expected to be crucial in accelerating Ziff’s growth initiatives.