- R2 raises $9 million in equity funding and secures a $50 million debt facility to expand financial services in Chile.
- The funds will accelerate product development, integrate more platforms, and enhance AI-powered underwriting for small businesses across Latin America.
What happened: Mexican fintech R2 secures $59M in funding
R2, Latin America’s embedded finance platform, has raised $9 million in an investment round led by Hi Ventures and Cometa, with participation from Endeavor Catalyst, Y Combinator, and Gradient Ventures. This equity round also includes a $50 million debt facility with Community Investment Management (CIM) to fuel its expansion in Chile.
The latest investment extends R2’s Series A, which was completed in 2022, and adds to the $100 million raised last year for its Mexican operations. R2 plans to use the funds to accelerate product development, integrate more platforms, and enhance AI-powered underwriting for small businesses across Latin America.
Since 2020, R2 has partnered with major platforms like Rappi, Clip, PayU, and inDrive to provide embedded financial services to over 47,000 businesses in Mexico, Chile, Colombia, and Peru. The company focuses on using machine learning to streamline access to capital for small and medium-sized enterprises.
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Why it is important
R2’s latest funding round is a significant development for embedded finance in Latin America. The company raised $9 million in equity from Hi Ventures, Cometa, Endeavor Catalyst, Y Combinator, and Gradient Ventures. Additionally, R2 secured a $50 million debt facility to support its expansion in Chile.
This investment builds on R2’s successful Series A round and complements the $100 million raised for its Mexican operations. With these funds, R2 will focus on accelerating product development and enhancing its AI-powered underwriting system for small businesses across the region.
R2’s platform provides essential financial services to over 47,000 businesses in Mexico, Chile, Colombia, and Peru. By leveraging machine learning, R2 helps small and medium-sized enterprises access capital more efficiently. This funding will enable R2 to expand its offerings, further integrating with platforms like Rappi and PayU, driving financial inclusion in the region.
