MICROCAPITAL BRIEF: Avla Raising $20m in Equity Round to Be Led by US-based Creation Investments to Expand B2B Insurance Offerings in Chile, Mexico, Peru

US-based Creation Investments Capital Management recently announced it is leading an equity investment of USD 20 million in Avla, a Chile-based business-to-business provider of insurance, surety bonds and collections services in Chile, Mexico and Peru. The firm’s insurance products include coverage for vendor non-payment as well as borrower non-payment. The names of the other participating investors have not been released.

The CEO of Avla Ignacio Álamos stated, “We are pleased 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 clients and continue to generate positive social impact in the region.”

Founded in 2008, Avla is backed by approximately 20 international reinsurers. Among its newer products is a mortgage loan financial technology (fintech) tool called Creditú. This arm of the business “has originated more than USD 200 million of housing loans and issued more than USD 70 million in securitization bonds.” During 2021, the firm projects earning USD 100 million in gross income.

Founded in 2007, Creation Investments manages funds and direct investments “for individual, family office and institutional investors… [to] provide access to capital to the unbanked and underbanked to engage in small-business activity.” In addition to the US, the firm has offices in India and Mexico. As of the first half of 2021, Creation Investments’ portfolio companies “serve over 28 million entrepreneurs with over USD 15.7 billion in micro- and small business loans outstanding, USD 4.1 billion in microsavings [and] 5.8 million microinsurance policies.” In addition, these firms report processing a one-year total of USD 3.7 billion in mobile payments.

By Harriet Ritchie, Research Associate

Sources and Additional Resources

Direct contact with CL-Media Relations, representing Creation Investments

PR Newswire press release
https://www.prnewswire.com/news-releases/creation-investments-leads-us20-million-investment-in-avla-for-strategic-growth-and-impact-in-latin-america-301313939.html

Avla press release (en español)
https://www.avla.com/cl/avla-realiza-aumento-de-capital-con-importante-fondo-de-inversion/

Avla homepage
https://www.avla.com/

LinkedIn profile on Avla
https://www.linkedin.com/company/somosavla/

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