Colombia's Addi lands $100 million credit line to expand buy now, pay later service

By Kylie Madry

(Reuters) - Colombian fintech Addi has nabbed a $100 million credit facility from private capital manager Victory Park Capital, the two said on Tuesday, which will allow Addi to expand its buy-now, pay-later service in the Andean nation.

WHY IT'S IMPORTANT

Buy-now, pay-later options have boomed in Latin America as e-commerce takes hold. Consumers lacking a bank account, or with limited credit options, are top targets for such purchases.

CONTEXT

Addi works with merchants to allow buy-now, pay-later at checkout. The startup began turning a profit earlier this year and received regulatory approval to become a bank, it said in a statement.

KEY QUOTE

"This new partnership will allow us not only to sustain our growth, but also to create and enhance our services to continue building a better customer experience," Addi co-founder and CEO Santiago Suarez said.

BY THE NUMBERS

Addi has logged nearly 2 million customers and more than 18,000 merchants since its founding in 2018, it said.

Source: Investing.com