Mexican Fintech R2 Announces $59 Million Funding Round

R2, a Latin America’s embedded finance platform, announced that it has secured an investment round of US$9 million from Hi Ventures and Cometa in addition to a debt facility for up to US$50 million with Community Investment Management (“CIM”).

Endeavor Catalyst, Y Combinator, and Gradient Ventures also participated in the equity round. The round is an extension of R2’s Series A completed in 2022. The debt facility will be used to fund R2’s growth in Chile and complements the US$100 million debt facility raised last year for its Mexican operation.

R2 enables platforms such as payment processors, marketplaces, ride-hailing apps, and vertical SaaS with embedded financial services for their small and medium businesses. Since inception in 2020, R2 has partnered with Rappi, Clip, PayU and inDrive, among others, to offer financing to more than 47,000 businesses across Mexico, Chile, Colombia, and Peru. The financial infrastructure company uses machine learning-based underwriting on transactional data, transforming the way small businesses in Latin America access capital. R2 intends to leverage the new funds to accelerate product development initiatives to integrate more platforms and invest in computing power to train more AI-based models.

“The equity investment from Hi Ventures and Cometa is a testament to our strong growth, best-in-class risk management, and the financial inclusion generated through our seamless, API-first integrations with Latin America’s leading platforms”,

said Roger Larach, R2’s Co-Founder and CEO.

“The capital enables us to double down in our core revenue-based financing product, while also building towards the end goal, which is to provide a suite of financial services – lines of credit, credit cards, debit accounts, instant payouts, and insurance – to users at the point of need, right on the platforms they use on a daily basis”.

Hi Ventures, Cometa, and Endeavor Catalyst join R2’s list of investors which include Gradient Ventures, General Catalyst, Y Combinator, Femsa Ventures, and Prosus Ventures, among others.