Santander InnoVentures makes investment into alternative SME lender a55

Maria Nikolova

The company underwrites SMEs through a technology platform connecting bank accounts, escrow solutions, billing, payment means and credit intelligence.

Santander Group’s venture capital fund Santander InnoVentures has invested into a55, a Latin American income-secured alternative small and medium-sized enterprise (SME) lender.

This takes the number of fintech companies Santander InnoVentures has invested into to over 30. This is its fourth investment in Latin America.

a55 was founded in early 2018 by André Wetter and Hugo Mathecowitsch in Brazil and provides solutions in the alternative lending space, offering revenue-backed credit lines to companies with recurring revenue. It aims to become the financing platform for service-based companies in Latin America, starting with software-as-a-service (SaaS) businesses and has recently launched operations in Mexico.

The company underwrites SMEs through a technology platform connecting bank accounts, escrow solutions, billing, payment means and credit intelligence. Since the launch of its operations two years ago, a55 has underwritten 50 companies in Brazil and Mexico through 350 different operations, with MXN 150 million in Mexico and BRL 100 million in Brazil. The company expects to double those numbers in the next 12 months.

Manuel Silva Martínez, managing partner at Santander InnoVentures, will join a55’s board of directors and work together with the team to help expand their capabilities and product reach and explore possible area for partnering with Banco Santander around the region.

a55’s technology solutions include, for borrowers, a credit monitoring dashboard, an insights section on revenue and cost metrics, an integrated cash flow covenant management system and escrow and revenue lock up tools to redirect a portion of the borrowers’ cash flows. For lenders, a55 developed a portfolio management and monitoring platform fed in real time by transactional data.

a55 is backed by institutional lenders in Brazil, Mexico, the US and France providing the platform with liquidity to lend to Brazilian and Mexican SMEs. The company had previously raised $3 million in seed money from small Brazilian and international investors. Santander InnoVentures has been leading this round, which exceeds $5 million in total from different investors.

Read this next

Metaverse Gaming NFT

Dubai Museum taps Binance to jump onto NFT bandwagon

Dubai’s Museum of the Future, the $136 million UAE government-sponsored museum that opened a few weeks ago, is joining forces with Binance NFT to roll out a range of digital products on blockchain.

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets

Crypto.com enables Shopify merchants to accept crypto payments

Crypto.com has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

<