Latin American buy now, pay later (BNPL) company Addi has raised new equity funding of $75m, bringing the firm’s total 90-day funding to $140m.
The round was 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.
The company, which has dual headquarters in Bogota, Colombia and São Paulo, Brazil, declined to reveal its new valuation but said it is “nearly triple” what it was 90 days ago when it closed on the first tranche of its Series B, and that it is now in the “hundreds of millions” of dollars range.
With the latest financing, Addi has now raised a total of $220m in debt and equity since its September 2018 inception — $140m of that in equity and over $80m in debt.
Addi will use the funds to continue to scale its current operations in Brazil and Colombia and expand into Mexico in early 2022. Additionally, the company 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.
Addi CEO Santiago Suarez said, “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. 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.”
With e-commerce transactions in the region projected to exceed $160bn by 2024, the market is well poised for online and digital BNPL purchases to explode in popularity. Research estimates that this trend will contribute to a global BNPL spend of around $995bn by 2026.
Addi has already experienced exponential growth since the start of 2021, having grown the volume of payments it powers on its platform 13x over since the beginning of the year. It has established itself as a key partner for online retailers, including Arturo Calle, Keep Running, Claro, Mario Hernandez, and BNPL as a payment method, with hundreds of merchants. By using Addi, merchants see their order values double or triple, with similar increases in online and mobile shopping conversions.
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