Kiwi, a Latino-founded FinTech entity, aims to propel the financial literacy of consumers, whilst enabling credit history development.
The company recently announced an injection of $80m in its coffers, consisting of a $75m credit facility, supplemented by a $4.5m pre-series A funding round. The debt financing was handed out by i80 Group, an investment firm recognised for supplying credit solutions to growth-oriented companies. Meanwhile, the equity round witnessed active participation from Advent-Morro Equity Partners, Altio Capital and Independent Capital.
Established in 2020 by first-generation immigrants, Mariano Sanz and Alexander Schachter, Kiwi was conceived with a vision to resolve the financial struggles encountered by millions of Latino consumers in the US. A lack of credit history often sidelines these individuals from the traditional financial system. Addressing this systemic gap, Kiwi employs proprietary AI and machine learning models to offer affordable capital to thin-file borrowers. This initiative equips them to manage everyday expenses whilst progressively building their credit profiles.
The fresh influx of capital will be instrumental in furthering Kiwi’s offerings. The company envisages the creation of new products with an ambition to position itself as the go-to platform for the underbanked Latino population to access a wider range of financial services.
Mariano Sanz, co-founder and CEO of Kiwi, lauded the unwavering support of their investors. “Our investors’ support is a testament to the value of our mission and the impact that we’re having on our customers’ lives,” he said. “Addressing the difficulties faced by underbanked consumers in joining the traditional credit system will have the most significant positive impact on their financial lives.”
Notably, the US Latino population, currently comprising over 18% of the total US population, is the fastest growing and largest minority group in the country. This trend signals a lucrative market for companies like Kiwi, targeting financial inclusion for underserved demographics.
Edward Goldstein, managing director at i80 Group, expressed excitement about their investment in Kiwi. “Kiwi’s innovative approach to credit access and their strong reception from customers make them a leader in the market,” he said.
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