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Mezubo Raises US$5.5 Million to Start Expansion in Latin America

Don't worry, we speak : Español (Spanish), too!

The Colombian fintech Mezubo raised a US$5.5 million seed round led by Brazilian VC fund Canary and Mexico’s DILA Capital. 

Sebastián Noguera, president of the proptech Habi, also participated in the round as an angel investor.

Mezubo was founded in 2020 by brothers Nicolás and Juan Sebastián Pardo. Both see that 2022 will be a key year, as they want to grow five times more than in 2021. In addition, they will seek to double their team (which currently has 35 people), and expand to one more country in Latin America. Will it be Mexico?

Mezumo does have Mexico on the map, as Mexico is home to the unicorn Kavak, which has high visibility in the used car buying and selling market.

Mezubo Wants to Provide More Financing

Mezubo offers loans towards the purchase of used cars; it only finances loans for private vehicles, except motorcycles. It offer these loans at competitive rates through its platform.

From the fintech platform, loans of up to 80% of the vehicle’s value can be requested. This is as long as the vehicle is a maximum of eight years old, with amounts of up to $80 million Colombian pesos (US$20,174).

What Mezubo does in this process is to finance these loans together with financial institutions. Once it originates the loan, it sells it to the institution.

To improve and meet its growth goals, the company will have to optimize its credit delivery time. In addition, it plans to grant $20 billion Colombian pesos in 2022 alone.

So far, it is unknown how many clients Mezubo has, but its founders have said that in the first months of operations they had more than 20,000 applications. 

You may also be interested in: The Latin American Companies That Belong to Y Combinator’s W22 batch

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