R2

R2 is a Fintech company established in 2020 with a mission to address the significant credit gap for small and medium-sized businesses (SMBs) in Latin America. The firm was founded by Roger Larach and Roger Teran and is headquartered in Mexico City. Larach's background includes experience at the Latin American neobank Ualá and as an investment banker, while Teran has a history as a data scientist at WeWork and experience in venture capital. Their combined expertise in finance and data analytics underpins the company's core strategy.

The company operates on a Capital-as-a-Service (CaaS) model, providing embedded lending infrastructure for technology platforms. R2's clients are primarily payment processors, point-of-sale (POS) systems, e-commerce marketplaces, and ride-hailing apps. Through a white-label solution, these platforms can offer financing to their merchant users seamlessly under their own brand, without taking on the associated credit risk. R2 generates revenue through this lending partnership, creating a new income stream for its platform clients while also boosting merchant retention and engagement.

R2's core service is an API-first embedded lending platform that leverages machine learning and transactional data to underwrite SMBs that are often overlooked by traditional financial institutions. By analyzing the rich data from the platforms its clients operate, R2 can assess risk and provide tailored, revenue-based financing from $500 to $50,000. Repayments are automatically collected as a percentage of the merchants' sales, a model designed to reduce delinquencies. This approach allows partners like Rappi, Clip, PayU, and inDrive to offer capital to their users, with R2 managing the entire process from KYC/AML to servicing and collections.

Keywords: embedded finance, Capital-as-a-Service, CaaS, Latin America fintech, SMB lending, revenue-based financing, lending infrastructure, API-first lending, financial inclusion, B2B fintech, merchant financing, credit risk assessment, machine learning underwriting, white-label financial products, fintech platform, Mexico City startup, Y Combinator, General Catalyst, Gradient Ventures, Rappi partner, PayU partner