The seed round, led by Accion Venture Lab, will support expansion of alternative credit scoring services for the underserved
SANTIAGO, Chile, Jan. 18, 2017 /PRNewswire/ -- Chilean-based alternative credit scoring startup Destacame announced today that it has closed its seed round of financing. Funds will support the expansion of Destacame's services within Chile and into Mexico in 2017.
Destacame is an alternative credit scoring platform that uses alternative data – such as utilities payment transactions – to assess an individual's creditworthiness. Destacame's proprietary algorithm synthesizes this customer data to generate an alternative credit score that can be provided to financial institutions to extend credit and other financial products to thin-file and credit-invisible customers.
"We are thrilled to expand our work with a network of partners who are equally committed to building a more financially inclusive world," said Jorge Camus, Destacame´s Co-Founder. "This financial support, Accion Venture Lab's global experience in scaling businesses and working with companies in the alternative data space, and Mountain Nazca's expertise all over the region, can help scale Destacame's effort in Chile and throughout Latin America."
"In too many instances, thin-file borrowers are neglected by formal financial institutions because serving these customers can be expensive, time-consuming, and subjective," said Michael Schlein, CEO and President of Accion. "Destacame addresses this problem by reducing the time, cost, and uncertainty of working with the underserved. With its strong leadership team, innovative technology, and commitment to the underserved, Destacame can ultimately help more people benefit from the world's financial system."
Creditworthy applicants are often denied loans or credit cards because they lack the detailed credit histories on which banks rely to lend. Further, in Chile and throughout Latin America, for those who do have a credit history, credit scoring is primarily negative; it often over-accounts for negative behaviors, and does not factor in positive ones – such as a history of paying bills on time – that are not reported to credit bureaus. Destacame's algorithm factors in both positive and negative behaviors, helps thin- and no-file customers prove their ability to repay loans, and reduces the barriers that often prevent financial institutions from working with underserved individuals.
The round was led by Accion Venture Lab, the seed-stage investment vehicle of financial inclusion leader Accion, which provides seed capital and management support to innovative startups that expand financial access to the poor and underserved. Venture Lab has already provided strategic advisory services to Destacame as a mentor through the Catalyst Fund. Mountain Nazca and several Chilean angel investors also contributed to the round.
Destacame allows middle and lower socioeconomic segments to prove their credit worthiness by using positive data gathered from credit-like services such as utilities and telecoms companies. Destacame was launched in Chile on August 2015, currently has +170,000 users and has processed +10,000 credit applications. It was founded by Sebastian Ugarte, Augusto Ruiz-Tagle and Jorge Camus while they were finishing their MBA at MIT. It currently has 15 employees and offices in Chile and Mexico. More information, please visit www.destacame.cl.
Accion is a global nonprofit dedicated to building a financially inclusive world with economic opportunity for all, by giving people the financial tools they need to improve their lives. We are building the next generation of top-tier microfinance institutions, and over more than 50 years have helped build 65 such institutions in 32 countries on four continents that today reach millions of clients. Our impact investing initiatives are pushing beyond microfinance to catalyze more than 30 innovative start-ups dedicated to improving the efficiency, reach, and scope of financial services for the poor. And our Center for Financial Inclusion is helping to build a stronger industry with high standards and broad engagement. Currently, our work spans nearly two dozen countries, including the U.S., where we are the nation's largest nonprofit microfinance network. For further information, visit http://www.accion.org.