AltScore, a fintech start-up that provides B2B lending infrastructure, announced it has raised $3.5 million in seed funding.
The financing will help AltScore “continue developing its end-to-end Lending-as-a-Service (LaaS) solution to help its B2B partners embed and deploy credit products while giving MSMBs fair and timely access to liquidity in LatAm.”
The seed round “includes US and LATAM funds, follow-ons from all previous Pre-Seed investors, first-class angels, and fintech operators.” The investment round was “led by Far Out VC, with participation from Caffeinated Capital, Techstars, Unpopular Ventures, Kamay Ventures, BuenTrip Ventures, Lorimer Ventures, and CompuSoluciones Ventures.”
The round also “included notable Angel Investors such as Miguel Fernández from Capchase, Uri Tintore from Belvo, Tommy Nicholas from Alloy Financial, and LatAm Super Angel Ivan Montoya.”
AltScore is a company “with an outstanding Founder Market Fit, which has created a transparent culture of quality and constant improvement that delivers innovative products in a rapidly growing market.”
With their Alternative Data, Credit Scoring, and Underwriting products in place, the company will use the funds “to evolve into an end-to-end LaaS toolbox, adding modulessuch as Smart Collections, Loan Management, and Embedded Lending.”
AltScore will also “expand its operations and move its HQ to Mexico.”
AltScore not only has an opportunity in contributing to the Fintech revolution in LATAM, but the founders have deep domain expertise and an ability to execute.
The investment comes in a year where AltScore “achieved over 10x growth in revenue YoY and a 34% CMGR over the last 12 months.” Moving forward, AltScore will “focus its growth in the Mexican market, looking to establish itself as a leader in the LaaS space.”
As noted in the update, AltScore started “operating in Ecuador in January 2021 with the vision of providing fair and efficient access to credit for underrepresented borrowers.”
The company now “offers LaaS APIs providing cutting-edge underwriting, alternative data and scores, and other lending modules.”
With AltScore, businesses increase customer retention and LTV “by embedding and deploying credit products.”
Thus, providing their own customers with access to fair and seamless liquidity. Existing lenders can also “leverage any of AltScore’s lending modules.” For example, using AltScore’s Alternative Data “to reach underserved customers or Scoring Engine API to enable real-time credit risk decisions.”
AltScore moved its HQ to Mexico “where it will concentrate its operations. The company has clientsin South, Central, and North America.”