Loto LatAm, a Colombian fintech focused on providing expense and incentive management solutions for small and medium-sized enterprises (SMEs), has successfully closed a $1 million pre-seed financing round. The funding attracted investments from venture capital firms such as Fen Ventures, Crestone VC, QAPU Ventures, and Desygn Capital.
Founded in May 2024 by Daniel Camacho and Pedro Ignacio Morales, the company aims to tackle the high closure rate of SMEs in the region, which stands at approximately 70% within the first four years. This issue is often linked to limited credit access and a lack of technological tools for financial management.
The newly acquired capital will primarily be used to accelerate growth within the Colombian market, with a target of reaching 500 users by the end of 2025. Since its inception, Loto LatAm has already onboarded over 100 clients, including notable companies like Amarilo, Stilotex, and KTM Powershop.
The expense management market in Latin America is experiencing robust growth, projected to increase from $487 million in 2021 to $711 million by 2025, with an annual growth rate close to 10%. In Brazil, this segment is expected to grow from $188 million to $275 million during the same period.
Daniel Camacho, the CEO, highlighted their competitive edge in expense management by ensuring expenses are not only reconciled but also recorded and legalized in accounting software. Javier Pedrals from Fen Ventures praised Loto LatAm for its smart and committed team addressing a vital market need, as demonstrated by their initial traction.
Looking ahead, the fintech plans to expand into a second market in the region by 2026, aiming to establish itself as a key player in financial management for SMEs across Latin America.
