Colombian-based consumer and fintech company Leal has raised a $10 million Series A round co-led by Rakuten Group (through its investment arm Rakuten Capital) and IDC Ventures. This will enable the company to launch its co-branded credit card and scale its operation in Mexico.
Latin American consumers lack access to financial services. The pandemic significantly worsened this situation by increasing social inequities, unemployment and poverty in the region. Cashback and rewards products help users earn money back on everyday purchases.
In 2021, Leal launched new functionality that lets grocery shoppers s
can paper receipts and earn Leal Coins that can be redeemed for goods and services, including gas, cell phone top-ups and food or grocery deliveries at Rappi.
Throughout 2022, the company said it plans to expand the platform to a new financial services ecosystem. The company will grow its rewards program, digital wallet, payment ecosystem, user base, merchant network and Leal Coins throughout Mexico, Colombia and Central America.
“We’re processing over 40 million purchases every year from millions of Latin Americans using Leal to be smarter shoppers, save money and feel truly rewarded,” co-founder and COO Florence Frech said. “Over 80% of these purchases are done in cash. We now want to improve our users’ well-being by giving them access to digital payments and financial services.”
“We have a unique opportunity to accelerate financial inclusion and serve the latent demand for consumer-facing fintech in LATAM with a different approach to digitalizing the underbanked,” co-founder and CEO Camilo Martinez added.
“Rakuten’s success stems from our commitment to providing a rewarding experience for shoppers, which is why we are pleased to invest in a company like Leal that delivers similar benefits to Latin American consumers,” said Amit Patel, CEO of Rakuten Americas and Rakuten Rewards. “Shopper rewards are a proven strategy in the US and Canada for driving incremental sales and new customers for merchant partners while delivering joy to members who shop through our properties. Leal is well-positioned to foster similar win-win relationships for Latin American shoppers and merchants, and we look forward to what we will learn from each other.”
Patel joins Leal’s board of directors.
“Fintech is one such industry that is still ripe for innovation and disruption. We recognize the incredible potential in Leal’s efforts to use rewards to completely change the way consumers shop – from when and where they shop to what they buy to how they pay for it. We know this will be an exciting and prosperous partnership with Leal, and we look forward to what we can accomplish together,” said Alejandro Rodriguez, managing partner of IDC Ventures.