Colombian fintech Addi closed a US$150 million structured credit line that brings its total debt to more than US$680 million. The milestone is not only financial: it marks a before and after in the relationship between the Latin American entrepreneurial ecosystem and the large global investment banks.
A warehouse structure
The warehouse structure is a sophisticated funding mechanism that allows Addi to use its own originated loans as collateral to obtain liquidity on an ongoing basis. It is the type of instrument used by the most mature financial institutions in the world, and which until now was uncommon in the Colombian entrepreneurial ecosystem.
That JP Morgan has led this operation, the first of its kind that the bank executes for a company in Colombia, is not a minor detail. It is a sign that Addi’s risk model is strong enough to operate under the standards of one of the most demanding investment banks on the planet. Fasanara Capital, which participates for the third time with Addi, reinforces that reading.
What to expect from Addi
With liquidity assured, Addi has the opportunity to continue scaling its network of businesses and consumers in a market that increasingly demands agile and digital credit solutions. The platform is no longer just a financing option, now with 33,000 connected businesses, from SMEs to large brands, it operates as a sales conversion engine. The next natural step aims to continue consolidating its position in Colombia and explore new markets, with a financial structure that already plays in the major leagues.
