Migrante offers gig worker vehicle leasing in Latin America –
Summary
In 2018, Ignacio Canals, Diego Fleischmann and Benjamin Izikson got the idea for the e-commerce and lending company to provide durable goods, like cars, motorbikes and mobile phones, for gig workers in the Andes region. “We sell expensive products that most people can’t buy without calling the bank, which is a process with a lot of friction.” Buying a vehicle is often out of reach for people, and through Migrante’s lending model and vehicle connections, the company is able to offer an average APR of 26% compared to other car dealerships in Chile, where it is often over 30% Despite social unrest in Chile at the end of 2019 and then the global pandemic in 2020 and 2021, Migrante saw some early traction as it began lending money, namely a marketplace that grew from zero to $30 million in annualized gross merchandise value, sales of over 700 units per month and a loan default rate of less than 1.5%. The company’s Series A was led by Kayyak Ventures and included individual investors like Creditas’ Sergio Furio, Betterfly’s Eduardo della Magiora and Affirm’s Huey Lin. It rounded out its leadership team with new hires, including Francisco Eterovic, former CEO of Creditú; Alejandra Duran, former CFO of Gelato; and Ignacio Gajardo, former CTO of Chilean digital wallet MACH. Cristóbal Silva Lombardi, general partner at Kayyak Ventures, said he has looked at different fintech companies in the region and thought Migrante’s model was unique because it started in a specific segment and owns the customer lead instead of financing from someone else.