MICROCAPITAL BRIEF: Avla raises $ 20 million in fundraising to be led by Creation Investments in the United States to expand its B2B insurance offerings in Chile, Mexico and Peru
Based in the United States Creation Investments Capital Management recently announced that it is leading a $ 20 million equity investment in Avla, a business-to-business insurance, bonding and collection services provider based in Peru, Chile, Mexico and Peru. The firm’s insurance products include coverage for the non-payment of the seller as well as the non-payment of the borrower. The names of other participating investors were not disclosed.
Avla CEO Ignacio Álamos said: “We are delighted to add Creation Investments as a shareholder to support our business and international expansion plans. With these resources, we will expand our commitment to our more than 50,000 small and medium-sized business customers and continue to generate positive social impact in the region. “
Founded in 2008, Avla is supported by around twenty international reinsurers. Among its new products is a financial technology (fintech) tool for mortgages called Creditú. This branch of the company “has issued over $ 200 million in home loans and issued over $ 70 million in securitization bonds.” In 2021, companies’ projects will earn $ 100 million in gross revenue.
Created in 2007, Creation Investments manages funds and direct investments “for individuals, family offices and institutional investors … [to] provide access to capital to unbanked and underbanked people to start a small business activity. In addition to the United States, the company has offices in India and Mexico. As of 2021, Creation Investments portfolio companies “serve over 28 million entrepreneurs with over $ 15.7 billion in outstanding loans to micro and small businesses, $ 4.1 billion from micro- saving. [and] 5.8 million microinsurance policies.
By Harriet Ritchie, Research Associate
Additional sources and resources
Avla press release (in Spanish)
Avla home page
LinkedIn profile on Avla
Creation Investments home page
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