fbpx

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

AltScore Raises Capital to Make Credit Available to Everyone

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

AltScore is an Ecuadorian fintech that enables its clients to offer loans to any individual or small and medium-sized enterprise (SME), including those who do not have a credit history because they are outside of the traditional banking system.

The company recently announced an investment by Kamay Ventures for an unspecified amount. This is Kamay’s first investment in 2022, and it is the fifth since this venture capital fund was created in 2019.

According to AltScore, there are 1.7 billion adults around the world who live outside of the banking system, of which 270 million belong to Latin America.

On the other hand, there are SMEs, which continue to be key to Latin American economies. One of the main problems they face is access to bank credit.

AltScore states that in Mexico and Ecuador alone, 60% of SMEs that apply for credit are rejected. It is to these two audiences that AltScore offers its loans.

Extending Access to Credit

The fintech company is creating customized models to accurately measure the risk of providing credit to certain SMEs and individuals.

To achieve this, they use two APIs: AltData, which connects to different data sources to provide more information about the applicant; and Scoring Engine, which uses the cloud to upload working systems to clients. 

This process allows AltScore to integrate with databases, business rules and credit risk models. This will then enable the fintech’s clients, who are primarily other lenders, to make better decisions when placing loans. 

AltScore is currently working with companies in Colombia, Ecuador, the United States and the Dominican Republic. Behind the first investment the company received is also Overboost. This is an accelerator who specialize in the creation of companies and independently manage Kamay Ventures. The founding investors of this fund include Grupo Arcor SAIC and Coca-Cola Latinoamericana.

It is worth mentioning that Kamay Ventures, based in Argentina, invests in e-commerce and m-commerce projects; fintech; digital S&OP or Consumer Intelligence; IOT (distribution, packaging and logistics); Ag-Tech (primary production, trading and sustainability); applied biotechnology (Healthcare nutritional); and environmental projects (recycling with focus on collection).

You may also be interested in: Q&A | In Fintech There Is Still a Lot to Modernize and Build: Gilgamesh Ventures

LEAVE A REPLY

Please enter your comment!
Please enter your name here

People Are Reading!

Wynwood House, a Peruvian Startup That Rents Out “Hotel-quality” Apartments, Raised...

0
Wynwood House, a Peruvian startup that follows the line of global companies such as Sonder as an alternative to Airbnb, halfway between Airbnb and...