Colombian fintech Mezubo raised a US$5.5 million seed round led by Brazilian VC fund Canary and Mexico’s DILA Capital. Mezubo was founded in 2020 by brothers Nicolás and Juan Sebastián Pardo. Both see that 2022 will be a key year, as they want to grow five times more than in 2021. In addition, they will seek to double their team and expand to one more country in Latin America. Mezumo does have Mexico on the map, as Mexico is home to the unicorn Kavak, which has high visibility in the used car buying and selling market.
Mezubo offers loans towards the purchase of used cars; it only finances loans for private vehicles, except motorcycles. It offers these loans at competitive rates through its platform. From the fintech platform, loans of up to 80% of the vehicle’s value can be requested. This is if the vehicle is a maximum of eight years old, with amounts of up to $80 million Colombian pesos (US$20,174). What Mezubo does in this process is to finance these loans together with financial institutions. Once it originates the loan, it sells it to the institution. To improve and meet its growth goals, the company will have to optimize its credit delivery time. In addition, it plans to grant $20 billion Colombian pesos in 2022 alone.