Fueled by CIM's $100M warehouse facility, R2 continues to forge ahead with its mission to broaden financial access to small and medium businesses in Latin America.
MEXICO CITY, May 5, 2023 /PRNewswire/ -- R2, the leading embedded lending infrastructure company in Latin America, has successfully closed a $100 million warehouse facility with Community Investment Management (CIM), a global impact-focused investment manager. The transaction provides the funding capacity to heavily scale and strengthen R2's lending capabilities and partnerships, spurring a new wave of innovation in the industry and positioning R2 to make a significant economic impact in Mexico and beyond.
Since its founding, R2 has emerged as a key player in the sector launching multiple embedded lending partnerships and originating over $20 million in Revenue-Based Financing and B2B Buy Now, Pay Later to over 6,000 small and medium business users (SMBs) in Mexico, Colombia, Chile, and Ecuador. Through its integration with leading technology companies in the payments and food delivery sectors, R2 empowers SMB users across the region to access the capital they need to grow and thrive. The $100 million warehouse facility follows R2's $15 million Series A, led by Gradient Ventures, Google's AI-focused venture fund. The rapid growth, institutional capital base, and modern software infrastructure establishes R2 as the trusted technology partner for companies seeking to embed financial solutions in Latin America.
Thomas Wright, Head of Finance & Capital Markets at R2, expressed his enthusiasm for the transaction: "We are delighted to secure this warehouse facility with CIM, an institutional debt capital provider with global reach that shares our commitment to deliver social impact through an innovative lending approach. This facility will enable R2 to provide seamless financial services to a broader range of small businesses that sell digitally, fostering more economic growth in Mexico." Roger Larach, R2's Co-Founder & CEO, echoed the sentiment: "We are confident that our partnership with CIM will pave the way for a more inclusive financial landscape in Latin America."
Elena Tchouvasheva Amato, Managing Director at CIM, also shared her excitement on the potential of this partnership: "At CIM, we are dedicated to supporting organizations that drive meaningful and responsible change in the lending industry. In Latin America, creditworthy small and medium businesses continue to be overlooked by traditional financial institutions because they can't leverage granular enough data to properly assess SMB risk. R2's cutting-edge embedded lending solution and AI-based underwriting solves this and the company is poised to transform the way SMBs access capital. We are thrilled to support their next phase of growth and believe this partnership will create lasting value for both our organizations and, most importantly, the communities we serve."
With this transaction, R2 consolidates its position as a market leader in the embedded lending industry, while CIM reaffirms its commitment to driving responsible innovation in lending. Together, the two organizations are poised to deliver meaningful impact by creating a more inclusive financial playing field, unlocking growth opportunities for small and medium businesses across Latin America, and transforming the financial landscape in the region.
Founded in 2020, R2 enables payment processors, POS systems and marketplaces to provide financing to small and medium businesses in Latin America. Via its API, R2 provides an end-to-end lending experience to technology platforms so that they provide capital to businesses without taking on any risk. R2 works with some of Latin America's leading technology companies and is backed by General Catalyst, Gradient Ventures, Y Combinator, 166 2nd, Femsa Ventures, among others. For more information, visit r2.co.
About Community Investment Management
Community Investment Management (CIM) is an institutional impact investment manager that provides strategic debt capital to demonstrate and scale responsible innovation in lending. CIM is dedicated to supporting organizations that drive positive change and foster financial inclusion, economic growth, and social impact. For more information, visit https://cim-llc.com/.