Monterrey, Mexico. Kredi raised $ 3.1 million in seed funding to allow Mexicans – and ultimately people from all over Latin America – who want to be homeowners to access the best mortgage rates and conditions.
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Kredi is one of the last Financial companies from Latin America attract venture capital. More than $ 7 billion has been invested in such companies since 2016, according to Crunchbase. Annual investment dollars have also risen since 2018, rising to $ 2 billion in 2020. So far this year, the volume of dollars invested in the sector is already in line with last year, which means that investments in 2021 will almost certainly eclipse 2020.
Before founding Kredi with friends Fernando Nader, Hernan Belden and Juan Carlos Mercado earlier this year, CEO Javier Aldapé left his previous startup when he personally experienced how difficult it is to get a loan in Mexico.
“You have to go to the bank, fill out paper forms, and eventually I was denied access to mortgages over and over again because the banks did not answer me,” Aldapa said. “I was disappointed because there was no innovation in this area. It gave me the idea that there should be Expedia-like lending platform that can provide us with all the existing opportunities. From there, you can choose the best option that suits your budget and the conditions that are convenient for you. “
Aldap sees in Credit “Rocket mortgage Latin America ”to improve the home buying experience.
The process begins with the fact that the client fills out a single application for a loan through Kredi. The company then prequalifies by contacting resources such as credit bureaus and tax collection agencies. Once approved, Kredi is sent to banks in their networks and fields with proposals for the mortgage applicant.
Aldape plans to use the new funding primarily for operations, development of the engineering and sales team, and underwriting of its own personal loans. For this, he is also looking for a $ 10 million warehouse.
Credit was part of Y combinatorcohort of the winter of 2021, and more than $ 8 million in mortgages have been issued since the beginning of the year. The company also has 17 employees and has a monthly revenue growth of 30 percent, he said.
Aldape sees similar difficulties in mortgage lending in other countries and intends to expand its activities in Brazil, Chile and Colombia over the next 18 months.
“The most important thing we are trying to change is to be transparent to customers,” he added. “If there is something wrong with your credit history that prevents you from getting a loan, most banks do not like to share it. We want to provide this information. We want people to know if they have a debt so they can pay it back. Everyone should have access to a home, and if they need a mortgage, we want to help them with that. ”
This transparency has attracted investors such as Samuel Garcia, a senior associate at Amplo, who will join Kredi as an observer on the board of directors as part of the seed investment.
Although he saw many companies leave Y Combinator wanting to be the “X in a certain industry,” he first heard of a company wanting to be like Rocket Mortgage. Growing up in South Texas, Garcia said he saw Latin America lack the wealth-creation component that the US has – home ownership.
“Owning a home in Latin America is very difficult because of the mortgage process in banks,” he said in an interview. “Credit tells people exactly what they want to know. I am very happy to see where they are going. They help people create wealth, and only in Mexico is this a huge opportunity. “
Illustration: House Guzman
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