Addi, a fintech and digital commerce startup based in Bogota and Sao Paulo, this week announced new equity funding for $75 million, led by Greycroft with participation from new investors GGV Capital, Citius Capital, and Intersection Growth Partners, as well as existing investors Andreessen Horowitz, Citius VC, Endeavor Catalyst, Foundation Capital, Monashees, and Quona Capital. Union Square’s Opportunity Fund also participated in the round, after having led the previous one.
The funds will be used to continue to scale its current operations in Brazil and Colombia and expand into Mexico in early 2022. Addi will enhance its BNPL offering while allowing customers and merchants to pay in new ways through its platform and its app, which launches later this month.
This extension to Addi’s previously announced Series B brings the company’s 90-day funding total to $140 million. The company disclosed this new round has nearly tripled its valuation.
In 2020, Latin America led the world in e-commerce sales growth at a rate of 36.7 per cent. With e-commerce transactions in the region projected to exceed $160 billion by 2024, the market is poised for strong BNPL growth. Research estimates this trend will contribute to a global BNPL spend of around $995 billion by 2026.
Addi is currently available for e-commerce, mobile, and brick-and-mortar purchases in Brazil and Colombia, with plans to expand across Latin America in the coming years. It begins with the BNPL space.
“Addi is redefining commerce in Latin America, said Will Szczerbiak, a partner at Greycroft. “The company’s payment and credit products create tremendous value for merchants while unlocking a modern checkout experience that has the potential to reach more consumers than any other fintech in the region. We are fortunate to partner with such a wonderful company and team.”
“Consumers around the world are shifting to digital commerce more rapidly than ever before, especially in emerging markets where new business models, growing middle class, and a digital-first mindset is taking hold. Huey Lin, founding COO of Affirm, venture partner with GGV Capital, and I look forward to working with Santiago and the strong team he has assembled to scale BNPL in Latin America,” said Hans Tung, managing partner, GGV Capital, who also leads its Latin American investment efforts.
“This round has increased our focus on making digital commerce ubiquitous and accessible across Latin America. Additionally, it’s a testament to the growth we’ve experienced, as well as the trust we’ve established with merchants and customers alike,” said Addi co-founder and CEO Santiago Suarez. “Our mission is now validated by world-class investors like Greycroft and GGV Capital, and this only fuels our motivation to accelerate our product and commercial roadmap.”