Colombian fintech Monet has successfully closed a $24 million Series A funding round, structured as a mix of equity and debt, to advance its financial inclusion mission. The company provides a digital platform for small-ticket, short-term loans, specifically targeting individuals excluded from the traditional banking system. This new capital injection will fuel the company's growth, enhance its technological capabilities, and expand its reach across the country.
Combating Predatory Lending with Technology
Monet's strategy directly confronts the widespread issue of informal "gota a gota" (drop by drop) loans, a predatory practice prevalent across Colombia. These informal lenders often charge exorbitant interest rates, trapping vulnerable households and micro-businesses in cycles of debt. By offering a secure and regulated alternative, Monet provides a crucial financial lifeline to those who have historically been exploited.
The platform is designed for informal workers, entrepreneurs, and citizens lacking a formal credit history, offering accessible loans between COP 50,000 and 500,000. This service addresses a significant gap, as a large portion of Colombians lack access to formal credit, forcing many to rely on high-risk informal sources. Monet's application serves as a vital tool for financial stability and empowerment for this underserved demographic.
Investor Confidence in a Challenging Climate
The funding will be strategically allocated to strengthen Monet's technology stack, optimize its risk assessment models, and achieve full nationwide coverage. The round was supported by a U.S. credit facility and investors like Ventures Comfama, who highlighted the company's profound social impact as a key factor. This backing validates Monet's model of blending financial innovation with a strong social purpose.
Securing this investment is particularly noteworthy given the current cautious and decelerated investment landscape in Colombia for foreign capital. The successful closure of the round signals strong market confidence in Monet's sustainable business model and its proven ability to generate both growth and social good. The company already reports operational presence in every department of the country, demonstrating its established foundation.
A Vision for Regional Growth and Inclusion
Looking ahead, Monet has set an ambitious goal to issue 3.5 million loans by 2026, driven by high demand for its accessible credit products. The company also plans to expand its operations internationally, with an entry into the Mexican market slated for the fourth quarter of the same year. This expansion marks the first step in replicating its successful financial inclusion model throughout Latin America.
A key priority for this new phase is the financial inclusion of Venezuelan migrants residing in Colombia. Monet will launch a credit offering for individuals with a Temporary Protection Permit (PPT), without requiring a prior credit history or co-signers. This initiative targets a population of nearly two million regularized migrants, providing them with a formal pathway to financial services.
This $24 million investment marks a pivotal moment for Monet, empowering it to scale its operations and deepen its impact on financial inclusion. The company is now better positioned to challenge informal lending practices and build a more equitable financial ecosystem in Colombia. By continuing to innovate and expand, Monet is solidifying its role as a key architect of accessible and transparent credit in the region.