Peru-based Leasy secures USD 17 mln in debt, equity

Monday 7 March 2022 14:00 CET | News

Leasy, a startup that offers automobile financing to ride-hailing drivers in Latin America via a subscription model, has secured USD 2 million in equity and USD 15 million in debt, TechCrunch states.

Leasy was founded in 2018 with the mission to help people who would like to earn incomes as ride-hailing drivers be able to afford cars, thus earning a steady income. Traditional financial institutions charge high interest rates and require hefty down payments, making it nearly impossible for members of a lower-income population to afford to purchase their own car. Lima-based Leasy is different, said its co-founder, in that its interest rates are far lower and terms much more flexible. It claims that it offers loans that are ‘built around the needs’ of a ride-hailing driver at competitive prices that match rental market prices. It also requires a down payment of 5%, compared to the 20% to 30% required by most banks.

Until now, Leasy was bootstrapped outside of credit lines from Banco de Credito del Peru (BCP) and Mitsui Auto Finance (MAF) – which the founders say they are grateful for because the startup scene in Peru is an evolving one.

Magma Partners led its seed round, and other investors include IncaVentures, BuenTrip Ventures, GRAM, Otto Holdings, and Nucleus EMV, among others. It is also part of the Endeavor ScaleUp programme. The company sought capital because it realised it ‘needed to scale with more speed’.

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Keywords: investment, funding, startup, embedded finance, Open Finance, subscription payments
Categories: Banking & Fintech
Countries: Peru
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Banking & Fintech

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