ADDI Raises $85M, Expands Fintech Services in Colombia

Bogotá-based fintech innovator ADDI has successfully closed an $85 million funding round, signaling a significant step forward in its ambition to build a comprehensive financial ecosystem. The investment was co-led by BTG Pactual and U.S.-based fund Citius, with participation from existing investors including Singapore's sovereign wealth fund GIC and venture capital firm Monashees. This latest infusion of capital positions ADDI for aggressive expansion into banking services, following its established success in the buy-now-pay-later (BNPL) segment.

The company, founded by former JP Morgan executive Santiago Suarez, along with co-founders Daniel Vallejo and Elmer Ortega, is charting a course reminiscent of e-commerce giants by integrating financial products with a marketplace. Unlike traditional e-commerce platforms that added financial services, ADDI began with financial solutions and is now expanding into merchant services and broader commerce offerings. This strategic pivot aims to create a unified platform catering to both consumers and businesses.

ADDI's valuation post-funding is reportedly nearing the $1 billion mark, underscoring investor confidence in its growth trajectory. This latest round builds upon the $255 million previously raised from prominent backers such as Andreessen Horowitz, Softbank, Quona Capital, and GGV Capital. The company has demonstrated robust financial performance, achieving breakeven in 2024 and maintaining a gross margin exceeding 50%. Its annualized recurring revenue (ARR) stood at $300 million in May, with projections to reach $350-400 million by year-end.

The strategic direction for ADDI now includes a significant push into traditional banking services. Having secured a banking license in Colombia, the company plans to launch its own bank account in the coming months, followed by credit cards and personal loans. This move is expected to deepen customer relationships and unlock new revenue streams, further solidifying its position as Colombia's leading fintech. ADDI currently holds the distinction of being the country's largest fintech and the second most downloaded app, trailing only Bancolombia.

The company's journey has not been without its international explorations. ADDI previously entered the Brazilian market with ambitious plans but ultimately withdrew, a decision CEO Santiago Suarez attributes to a shift in the global funding environment rather than specific market challenges. "The ideas of large international expansions belonged to a time when equity was much cheaper," Suarez explained, emphasizing a strategic shift towards profitability and self-sufficiency. This focus on sustainable growth is now centered on building a dominant presence in Colombia.

The investment from BTG Pactual, deployed through its growth equity strategy, highlights the firm's belief in ADDI's integrated model. Gabriela Lima, director at BTG's private equity division, drew parallels to Kaspi, a Kazakhstan-based company with a similar business model that achieved a multi-billion dollar valuation. "This already gives a dimension of how big ADDI's opportunity is," Lima stated, pointing to the potential for significant market capitalization even within a single, albeit large, market like Colombia.

While the immediate focus remains on consolidating its leadership in Colombia, ADDI has not ruled out future international expansion, with Brazil remaining a potential target. The partnership with BTG Pactual provides a valuable strategic ally should ADDI decide to re-enter or explore opportunities in the Brazilian market. The company's current revenue split is approximately 60% from its fintech operations, primarily BNPL interest, and 40% from merchant fees, showcasing a balanced revenue model.