AskRobin, an Estonia-founded fintech that operates a monetary services marketplace for”underbanked”clients in Latin America, has actually picked up$ 1.7 million in funding. The seed round is backed by VC funds Change Ventures, Vereeni Early Stage Fund, BENE Asia Capital, and Lemonade Stand. In addition, a variety of tech entrepreneurs from Estonia participated, such as Ragnar Sass, co-founder of Pipedrive, and Taavi Tamkivi, creator of the anti-money laundering platform Salv.
“We started in Mexico in late 2017, where we initially established a FB Messenger chatbot to bring basic monetary education to people,” says askRobin co-founder and CEO Rain Sepp (who previously invested 13 years operating at digital loaning startup Credit24). “Nevertheless, we quickly understood that we require to go the entire 9 yards and make certain we get the loaning business to really get thinking about serving those people and making them much better deals”.
Since then, askRobin has actually progressed into something more comparable to Credit Karma in the U.K., which pairs free credit rating with a market of appropriate monetary products. “We bring our partner companies access to risk based customer sections, and get them contending for clients, resulting in enhanced item offers,” discusses Sepp. This, he argues, is far better than the status quo.
“60% of employed middle class in emerging markets are unable to get access to formal credit and are entrusted predatory prestamistas (shylock) on the street. Those people are frequently just giving up after the very first ‘No’ from the bank and returning to their neighbourhood lending institution”.
To provide a fairer option, askRobin gathers appropriate financial and other data from consumers and assists them build their financial profile so regarding end up being an eligible debtor. Customers then get revealed “all relevant offers in one go and can choose the best to save on interest”.
“For providing companies those risk-based customer sections and risk-adjusted item uses increase their approval rates, lower their CAC [consumer acquisition costs] and assist them to control credit risk– slowly opening up the markets where they simply did not have information and access previously”.
That appears to be working out well for askRobin. At the end of 2018, the startup broadened to Colombia and Argentina, and likewise now serves Peru. Sepp states that in most of these markets, emerging digital loaning fintechs are defending market share with informal lending institutions and “old-school” micro-finance business, making an item like askRobin a good fit.
“With the financing market getting a growing number of mindful in the existing crisis situation, the service that we provide is progressively important to the people. And it may work as ‘life-vest’ for lending companies, assisting them to focus to the best type of consumers and control the credit risk by showing right products to each section,” adds the askRobin CEO.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.