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Colombian company Monet recently closed a Series A investment round in a combined equity and debt structure worth US$24 million and plans to accelerate its mission to combat the “payday loan” model in the country.
The fintech company, which intends to expand into the Mexican market, plans to deliver 3.5 million loans by 2026, in addition to providing access to formal “nano loans” for Venezuelan migrants with Temporary Protection Permits (PPT), without credit history or co-signers.
More than 2.8 million Venezuelan migrants reside in Colombia, of whom 1.9 million already have authorized TPPs, according to Migración Colombia, making this initiative a key factor in enabling this population to access formal loans.
Monet promotes financial inclusion through small loans, and the new capital will allow the company to strengthen its technology, expand its national coverage, and optimize its risk assessment tools to reach more users.
Users can receive up to COP $500,000 pesos (roughly US$130) in real time on credit for 30 days, regardless of whether they are reported to credit bureaus or have no credit history. The app already has more than 1 million downloads, 2,500,000 loans granted, and more than 760,000 positive reports to date.
“Reaching an investment of $24 million in a context of venture capital slowdown confirms that Monet is not a future promise, but an operation that has already demonstrated three things: scale, sustainability, and measurable impact,” said María Camila Fajardo, Director of Inclusion at Monet, in an interview with Contxto.
In Colombia, around 200,000 families resort to this pay day credit, facing high interest rates of between 20% and 40% per month, reaching an average of 380% effective annual rate. This can lead to violence and a permanent deterioration of the financial stability of many people.
“At Monet, we understand that this cannot be combated with financial information alone, but with real, accessible, and formal alternatives,” said Fajardo. “Every fair loan that replaces an informal one is one less family exposed to abuse and one more person within the financial system,” added the spokesperson.
The round was backed by an American credit facility and several additional investors, including Ventures Comfama, whose purpose is to strengthen ventures that generate high social impact in the territories. “With this investment, we will continue to bring a concrete solution to markets where access to credit remains a daily barrier for millions of people,” concluded Fajardo.
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