Creation Investments Capital Management, a leading global impact investor in emerging markets, confirms that Peruvian microfinance company Los Andes has closed a $10 million capital round led by Accion Digital Transformation Fund.
The capital raise will support the strategic M&A and digital transformation plans of Los Andes – which serves micro and small entrepreneurs in rural Peru.
Los Andes has over 26 years of experience in the microfinance sector in rural Peru. The company serves around 85,000 borrowers and over 227,000 savings clients.
Through digital transformation and enablement, Los Andes aims to significantly expand its client base among the country’s 2.1 million micro, small, and medium enterprises.
Creation Investments first invested in Los Andes in 2016 and has led several subsequent funding rounds.
Managed by Accion Impact Management, the Accion Digital Transformation Fund builds on global nonprofit Accion’s experience supporting banks and finance companies globally.
Los Andes will draw on lessons from across Accion’s global work to help deliver new digital products and increase the use of digital processes.
“We are excited to welcome Accion Digital Transformation Fund as a key shareholder in Los Andes to bolster the company’s growth plan driven by strategic M&A and digital transformation,” said Bryan Wagner, Creation Partner and Los Andes Board Member.
“Los Andes has demonstrated the ability to maintain profitability while promoting financial inclusion in the most underserved areas of rural Peru.”