Jack Ma's Ant Group bets on Latin America with an investment in Mexican fintech R2

R2, the integrated lending platform enabling companies like Rappi and InDrive to offer financial services under their own brands, has secured a strategic investment from Ant International, the global arm of Jack Ma’s Ant Group.

The deal includes an initial capital injection aimed at broadening access to credit for small and medium-sized enterprises (SMEs) across the region, though financial terms were not disclosed.

Addressing the Latin American Funding Gap

This partnership comes amid a slowdown in venture capital activity in Latin America, which PitchBook notes has reached its slowest pace in nearly seven years due to reduced liquidity and the retreat of global investors.

Ant International’s support for R2 reflects growing interest from Asian firms in Latin America, recognizing parallels between the region and their home markets a decade ago, where low banking penetration and rising digital payments created opportunities for financial innovation.

How R2 Supports Businesses

R2 specializes in revenue-based loans, which are repaid as a percentage of sales, helping reduce delinquency and providing flexible financing for SMEs.

Through this collaboration, Ant International will supply R2 with AI-driven tools and solutions to lower the cost of credit. Earlier this year, Ant International introduced working capital solutions for SMEs in Brazil, further demonstrating its commitment to the region.

A Growing Trend of Asian Investment in Latin American Fintech

The R2 investment aligns with a broader wave of Asian firms entering Latin America’s fintech space. In October, Indonesian fintech Xendit announced plans to expand cross-border payment processing in the region.

Similarly, Tencent Holdings Ltd has invested in Argentine fintech Ualá, Brazilian Nubank, and expense management platform Jeeves. Other firms, such as Notable Capital and BAI Capital, have targeted high-growth fintechs like Stori, Clara, and Addi.

R2 has also attracted funding from prominent global backers including Gradient Ventures (Google), Y Combinator, Endeavor Catalyst, Hi Ventures, and Cometa.

Looking Ahead

With Ant International’s backing, R2 is poised to accelerate its expansion and enhance financial inclusion for SMEs in Latin America, leveraging AI and innovative lending structures to address longstanding credit gaps in the region.