Arrenda

About Arrenda

Arrenda, a fintech company headquartered in Mexico City, was established in 2022 by Joe Merullo. Merullo's firsthand experience with the complex rental process in Mexico, which often requires co-signers and large upfront payments, inspired the company's creation. Arrenda operates in the proptech and financial services sectors, aiming to resolve liquidity and trust issues between landlords and tenants in Latin America.

The company's core business revolves around providing advance rent payments to landlords. Through its flagship product, "Adelanta," property owners can receive up to one year's worth of future rental income within 24 hours. This service is facilitated by a proprietary algorithm that assesses risk based on data from bank accounts, credit bureaus, and tax information. Revenue is generated through a one-time commission fee for this financial factoring service. Initially targeting the residential real estate market, Arrenda's client base consists of property owners in Mexico's largest cities. The company secures capital for these advances through debt financing, having raised a significant pre-seed round of $26.5 million in equity and debt in July 2022, led by Fasanara Capital and Kube Ventures.

In a significant strategic shift, Arrenda was acquired by Ziff, a Mexican financial solutions provider, in February 2024. This acquisition aims to expand Arrenda's financing model beyond real estate to address cash flow challenges for small and medium-sized enterprises (SMEs) in Mexico. Following the acquisition, the business model now includes extending financing to any business with accounts receivable due within a 36-month period. Joe Merullo joined Ziff's executive team as Chief Technology Officer, integrating Arrenda's technology, including its digital loan origination and management systems, into Ziff's platform. The combined entity plans to leverage Arrenda's network of over 9,000 real estate advisors to accelerate growth and deploy over MX$1 billion in loans by 2027.