Lana, a recent startup based totally mostly in Madrid, is searching to be the next huge thing in Latin American fintech.
Based by serial entrepreneur Pablo Muniz, whose final alternate was backed by notion to be one of Spain’s biggest financial products and companies establishments, BBVA, Lana is searching to be the all-in-one financial products and companies provider for Latin The US’s gig economy staff.
Muniz’s final firm, Denizen, was designed to present expats in international and domestic markets with the financial products and companies they’d need as they began their contemporary lives in a obvious country. Whereas the target buyer for Lana would possibly per chance merely no longer be the same middle to greater-middle-class world traveler that he had previously hoped to serve, the challenges gig economy staff face in Latin The US are powerful the same.
Muniz genuinely had two revelations from his work at Denizen. The first — he would never strive to initiate a fintech firm along side a huge financial institution. And the second was that fintechs or neobanks that heart of attention on a surely arena of interest segment shall be a hit — so long as they would possibly be able to safe the trusty arena of interest.
The largest arena of interest that Muniz saw that was underserved was genuinely in the gig economy situation in Latin The US. “I knew several people that labored at gig economy companies and I knew that their companies had been booming and the industry was rising,” he mentioned. “[But] I was excited by the inequalities.”
Workers in gig economy marketplaces in Latin The US recurrently don’t have financial institution accounts and are paid thru the apps on which they list their products and companies in siloed wallets which are queer to that particular app. What Lana is hoping to keep is change into the pockets of wallets for all of totally different companies on which laborers list their products and companies. Steadily, drivers will work for Uber or Cabify and bring food for Rappi. Those staff have wallets for every and each carrier.
Lana needs to unify all of these disparate wallets precise into a single epic that can operate relish a cost epic. These accounts would possibly per chance be opened at native carrier provider outlets and, once opened, staff will have entry to a debit card that they would possibly be able to divulge at totally different areas.
The Lana carrier moreover has a bill pay characteristic that it’s rolling out to users, in the first evolution of the product precise into a marketplace for financial products and companies that can enchantment to gig staff, Muniz mentioned.
“We are searching to change into that epic whereby they receive funds,” he mentioned. “We are silent iterating the price proposition to gig economy companies.”
Working with companies relish Cabify, and totally different, undisclosed companies, Lana has plans to roll out in Mexico, Chile, Peru and, in the end, Colombia and Argentina.
At final, Lana hopes to transfer beyond customary banking products and companies relish deposits and funds and into credit products and companies. Already relatively a few of customers are the divulge of the firm’s carrier thru the distribution partnership with Cabify, which ran the preliminary pilot to resolve the viability of the firm’s offering.
“The premise of making Lana was at first tested as an inside of project at Cabify,” Muniz wrote in an email. “Soon Cabify and some in all probability investors saw that Lana can have a elevated affect as an independent firm, having the capability to serve gig economy staff from any industry and determined to inaugurate over a recent entrepreneurial project.”
Thru these connections with Cabify, Lana was in a position to herald totally different investors relish the Silicon Valley-based totally mostly investment company Harmful 10.
“Undoubtedly one of many things we’ve been serious about is in inclusion on the entire and in fintech specifically,” mentioned Adeyemi Ajao, the company’s co-founder. “We had gotten very shut to investing in a few fintech companies in Latin The US and that’s since the replacement is immense. There are several million people going from unbanked to banked in the spot.”
Along with a few totally different investors, Harmful 10 place in $12.5 million to finance Lana because it appears to be to lengthen. It’s a market that has few real competitors. Nubank, Latin The US’s biggest fintech firm, is offering credit products and companies all around the continent, but most of their conclude users have already got an established financial history.
“Most of their conclude users have to no longer unbanked,” mentioned Ajao. “With Lana it is genuinely gig staff… They’ll inaugurate by being a pockets of wallets and then give potentialities merchandise that aid them finance their vehicles or their scooters.”
The final notion is to bag staff paid sooner and provide a window into their financial history that can per chance give them extra opportunities at totally different gig economy companies, mentioned Ajao. “The vision would be that any person can hotfoot of their financial records for products and companies. In the event that they’re working for Rappi and have never been an Uber driver and in command that they are searching to be an Uber driver, Lana can divulge their financial history with Rappi to present a loan on a automobile,” he mentioned.
That financial history is exclusively inaccessible to a feeble financial institution, and these established financial products and companies don’t care about the history constructed in wallets that they would possibly be able to’t preserve watch over or observe. “This present day in case you’ve been a gig worker and also you move to a financial institution, that’s price nothing,” mentioned Ajao.