Destácame, the Chilean credit solutions platform, closes US$3 million Series A

Contxto – This past week, an alternative credit lender from Santiago, Chile raised over US$3 million during an epic Series A funding round. Investors included Fen Ventures, Accion Venture Lab and Mountain Nazca.

With new capital comes new aspirations for Destácame. Going forward, the company hopes to scale services in Mexico, fortify operations in Chile, as well as continue developing financial products among its 25 partnering organizations.

What does Destácame do?

Economic freedom – that’s what Destácame would like to accomplish for its clients. The financial management platform founded in 2015 by Jorge Camus, Augusto Ruiz-Tagle and Sebastian Ugarte helps around 1.3 million underserved Chileans and Mexicans reach new levels of economic wellbeing.

Following suit, the startup offers an array of fiscal tools for individuals with little to no credit history. Services include debt repayment assistance, consumer loans, credit cards, in addition to other free resources. What’s more, clients receive an alternative credit score based on individual payment behavior.

How does Destácame make your life easier?

As an alternative credit lender, Destácame lift people out of poverty by offering lower interest rates than other Chilean microfinance institutions. Not long ago, Impact Alpha commended the young enterprise for its sustainable investment tools, especially when it comes to underwriting.

In the financial world, underwriting guarantees payment and acceptance of financial loss. You agree to pay for losses or damages when you underwrite an insurance policy, for example. For banks, underwriting means you have pledged to buy any unsold shares.

However, the worse your credit score is, the higher the interest rates or underwriting terms will be. Destácame fixes this issue by offering some of the most affordable rates on the market.

Conclusion

Sometimes life happens. Perhaps you’ve missed a few loan payments, so your credit score plummeted. Maybe you’ve been laid off and struggling to make ends meet, whether that means paying a delinquent medical bill or renewing your car insurance on time.

Long story short – just because your credit score is less than desirable, that doesn’t make you untrustworthy or unreliable.

This is why I respect what Destácame does. The metrics the fintech firm uses to formulate a person’s credit score feel like a holistic solution to the stringent industry. It’s reassuring that people can get second chances.

If more companies follow Destácame’s example, then I’m sure countries like Chile and Mexico will witness more growth among the emerging middle class.

-JA