The next fintech disrupter [LatAm]

Arrenda is an emerging fintech poised to disrupt the real estate rental market in Latin America.

VENTURE CAPITAL

Aatish J Patel

10/18/20231 min read

Arrenda is an emerging fintech poised to disrupt the real estate rental market in Latin America.

Founded in 2017 by serial entrepreneur Joe Morella, the Mexico City-based startup offers innovative digital financial services to landlords.

With 5.5 million renting households in Mexico alone, there is massive demand for Arrenda’s core product — Adelanta — which provides up to 12 months of rental income to property owners within 24 hours or less. This creatively turns future earnings into immediate financing, fulfilling an immense need for liquidity especially in underbanked communities in Latin America.

The company’s proprietary risk algorithms and underwriting process provides a huge comparative advantage. By leveraging technology and data, Arrenda can rapidly assess and originate credit at scale, and having first mover advantage coupled with a superb team with high domain expertise with on-the-ground market knowledge. Morella himself brings relevant experience from both real estate and proptech. With only two years since launching, Arrenda has already built tremendous momentum.

The $26.5 million pre-seed round attracted top-tier VCs led by Fasanara Capital, joined by Kube Ventures, ODX, Toehold Ventures, Wharton Fintech, Lightspeed Venture Partners Scout Fund, PRMM Inmobiliaria and angels. The round also allows expansion across Latin America, where similar dynamics create a massive addressable market.

With proven unit economics and early traction, Arrenda exhibits the hallmarks of a truly promising fintech startup: seasoned leadership, a massive untapped market, proprietary tech/data advantages, future product offerings to tenants like BNPLs and attractive future expansion possibilities.

This is a unique opportunity to back a highly scalable model poised to dominate real estate finance in Latin America. I am bullish on Arrenda’s scalability and Arrenda’s growth prospects and I truly believe this could generate outsized returns for early investors.