Legaltech startup Magnar AI secures USD$300K for regional expansion
Chilean legaltech Magnar AI raises $300K to expand its AI-powered platform for lawyers across Latin America, backed by top startup investors.
Legaltech startup Magnar AI has raised $300,000 in its first investment round to strengthen its technology platform and begin regional expansion across Latin America. Founded just five months ago by engineers Andrés Arellano and Nicolás López, the company aims to automate legal tasks and enhance lawyers’ productivity through artificial intelligence.
Backed by Prominent Startup Investors
The funding round included participation from Buenaonda, the investment vehicle of Cornershop’s co-founders, Platanus Ventures, and Punto Cero Ventures, along with leading Chilean entrepreneurs such as Sebastián Kreis (Xepelin), Agustín Feuerhake (Fintual), Ignacio Canals (Migrante), Gert Findel (Acid Labs), Leo Soto (Shinkansen), and Andrés Kemeny (Examedi).
Andrés Arellano, CEO of Magnar AI, has a background that bridges technology and the legal world. He studied Law before switching to Engineering at the Pontificia Universidad Católica de Chile, later joining the first generation of Start-Up Chile. He also co-founded Platanus in 2012, initially a software factory that evolved into one of the region’s most active accelerators.
“Building this kind of infrastructure in-house is expensive and time-consuming. We created Magnar AI to democratize access to intelligent legal tools,” said Arellano.
An AI Platform Built for Lawyers
Magnar AI describes itself as “a platform that enhances lawyers’ work through AI.” The system is trained using millions of regulatory and legal documents, including legislation, Supreme Court rulings, and data from Chile’s Internal Revenue Service (SII), Financial Market Commission (CMF), Comptroller General’s Office, and Constitutional Court.
By leveraging foundational models such as ChatGPT and Gemini, the platform can deliver highly reliable responses while minimizing hallucinations.
The company offers its solution as a Software-as-a-Service (SaaS), featuring tools for case summarization, legal research, lawsuit drafting, and an AI-powered chatbot assistant. It can also integrate with law firm libraries or internal databases to handle complex information-heavy processes like due diligence.
“Our goal is to make AI-powered legal assistance accessible to every lawyer and firm in the region,” added Arellano.
Strong Traction and Rapid Growth
Despite its short existence, Magnar AI has achieved rapid adoption, reporting 100% month-over-month growth. The startup currently has over 5,000 registered lawyers, including 100 individual clients and 30 corporate accounts, such as legal departments and law firms.
The company’s business model includes monthly subscriptions for both B2C (individual lawyers) and B2B (law firms) clients, as well as a free plan with limited monthly credits.
From Bootstrapped to Funded
Arellano explained that Magnar AI initially planned to grow organically without external funding.
“We weren’t looking to raise capital, but the validation and traction came so fast that we decided to accelerate,” he said.
Within a month, and without formal VC outreach or pitch decks, the team secured the $300,000 investment. The funds will be used to enhance the platform’s capabilities, develop new features, and strengthen data reliability.
Regional Expansion Plans
With operations recently launched in Peru, Magnar AI plans to expand to Colombia, Uruguay, and Mexico by the end of 2025. Currently, the company operates with a compact six-person team, including a legal technology specialist and a small commercial and communications unit.
“We’re already profitable and want to keep the team lean while scaling smartly,” noted Arellano.
Magnar AI projects to surpass $1 million in annual recurring revenue during the first quarter of 2026.
As artificial intelligence continues to reshape traditional industries, Magnar AI stands out as one of the most promising legaltech startups emerging from Latin America. By combining technical precision with deep legal expertise, the company is positioning itself to lead the next wave of intelligent automation in the legal sector, where efficiency, reliability, and data-driven insights are becoming essential.
