R5, a Colombian fintech focused on offering financial solutions for vehicle owners, has closed an investment agreement with Lendable, a leading debt finance provider which has a strong focus on creating impact through fintech with a history of promoting inclusivity and sustainability.
The funds will be used to increase the issuance of credits for purchasing used cars, with the goal of helping thousands of Colombians fulfil their dreams of owning a car for the first time or buying a high-quality used one. Additionally, this capital infusion will allow R5 to continue developing solutions that improve the financial health of Colombians and will soon extend its operations to more Latin American countries.
“We are excited to collaborate with a globally recognized fund like Lendable; this capital will allow us to continue our mission of positively impacting more and more Colombians, helping them improve their quality of life,” commented Pablo Armida, co-founder of R5.
Iñaki García, Head of Latin America Investments at Lendable, affirmed that “at Lendable, we firmly believe that the fusion of technology and finance can unleash a world full of greater opportunities and economic fairness. For this reason, we invest in fintechs like R5, which not only seek commercial profitability but also pursue tangible improvements in people’s lives. R5 perfectly reflects this ideal, and we are proud to have them in our portfolio. By facilitating financing to traditionally underserved customers and streamlining insurance acquisition, we are convinced that we are making a highly valuable investment for the consumer.”
Lendable is a technology-enabled investment and alternatives platform focused on global impact alternatives. Lendable’s mission is to create a more equitable and sustainable world through data and finance. Through funds, co-investments, and technology solutions, Lendable enables market access for global investors whilst also providing financing solutions for leading high-growth companies with a positive impact. Lendable is currently active in 18 countries and has deployed over $430 million in fintech investments.
Since its foundation in 2018 to date, R5 has impacted more than 1.5 million Colombians, improving their finances and allowing them to be increasingly closer to fulfilling their dreams and goals. Thanks to its focus on originating credits with constructive goals, according to the impact auditing firm 60 decibels, 66% of R5’s customers report having significantly improved their quality of life after receiving credit from the company, while 42% report having experienced an increase in their income.
This investment round was preceded by the 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, aimed at expanding the workforce while increasing credit issuance up to five times compared to 2021.