Closing the Connectivity Gap for Low-Income Urban Populations in Latin America
Summary
Fifteen percent of Latams population (over 40 million households), the majority of whom are low-income and living in urban, informal settlements, lack access to fixed internet in the home. Additionally, wireless providers offer inflexible packages that cut off service as soon as a data package has expired which is ill-adapted to the needs of marginalized clients whose income flows are often volatile and require more flexible payment mechanisms limiting the amount of data that households can consume.Fibrazo is a startup focused on closing the connectivity gap for the urban population living in low-income settlements across Latin America. Fibrazo has designed a model that delivers a critical service through a payment structure that meets users volatile income streams, allowing users to remain connected amidst disruptions that affect their regular cashflows.In addition, Fibrazos solution is directly linked to Mercy Corps Ventures Climate Smart Tech Thesis and Inclusive Fintech Thesis: The ability to work and study remotely increases productivity and therefore, income Remote work reduces transport costs, time, and the carbon footprint associated with traveling through congested cities The cost of Fibrazos internet plan is significantly cheaper than buying data packages on cell phones and tethering, resulting in significant cost savings relative to alternatives Unlike other embedded finance solutions, Fibrazo not only offers the prospects of creating a digital credit history by regular internet payments, but also builds a direct relationship with each customer that is rooted in their physical house, neighborhood and surroundings, allowing Fibrazo to build a much more complete picture of their users and develop tailored products specifically designed to meet the need of those users over time (e.g., loans, mortgages, insurance, etc. )The connectivity sector is something we have yet to invest in, despite mapping strongly to our resilience framework: WiFi broadband internet is essential to participate in the modern economy and a large portion of Latin American households in the periphery of cities still do not have access. Fibrazos is led by serial founders that clearly deeply understand the market, technical side, and scaling path with a track record of success in businesses oriented to bottom-of-the-pyramid populations in Latin America, and globallyDan Block, Partner at Mercy Corps Ventures We get very excited when we find partners that share the authentic will of improving the lives at the bottom of the pyramid and the agility to make it happen.