Ant International, a global digital payment and financial technology provider, has announced a strategic investment in R2, a leading embedded lending infrastructure company in Latin America (LATAM). This partnership aims to expand access to credit for small and medium-sized enterprises (SMEs) across the region.

R2, founded in 2020, enables digital platforms to offer financing solutions through an API-based, end-to-end white-labeled experience. This allows merchants to access capital via their existing digital platforms, such as point-of-sale systems, payment processors, marketplaces, and e-commerce solutions. R2 currently operates in Mexico, Chile, Colombia, Peru, and Brazil.

Ant International’s investment includes a primary capital injection, leveraging the combined strengths of both companies to advance inclusive growth through digital technologies. R2 will continue to deploy its existing infrastructure, risk models, and local regulatory expertise. Ant International will enhance R2’s solutions with advanced AI-powered risk capabilities, which are expected to lower the cost of credit. R2’s management team will maintain day-to-day operations to support existing customers and partners while expanding reach to underserved SMEs.

Roger Larach, Co-Founder and Chief Executive Officer of R2, commented on the collaboration: “Partnering with Ant International is a defining step in R2’s journey. Together, we will combine world-class risk management, AI-driven underwriting, and capital to bring inclusive credit at scale – empowering millions of small and micro businesses while keeping true to our mission of making access to finance frictionless at the point of need.”

Ant International’s Global Credit Services unit, which launched SME working capital solutions in Brazil earlier this year, brings complementary expertise in inclusive financing. The partnership also grants R2 access to Ant International’s global credit engine, which assists financial institutions, fintechs, and other qualified lenders in making credit decisions with increased efficiency, accuracy, and speed.

R2 pioneered its innovative revenue-based financing model through partners such as inDrive, Uber Eats, Rappi, Haulmer, and PayU. The company has served over 100,000 SMEs in LATAM, a region where an estimated 13% of SME credit demand is currently met by banks and fintechs, according to a 2024 report. By improving credit access, R2 and Ant International aim to stimulate economic growth in the region.

Quan Yu, General Manager of Global Credit Services at Ant International, stated: “R2 has been clear in its mission and drive to support SMEs – the backbone of LATAM’s economy – from day one, underpinned by its founders’ deep understanding of the difficulties faced by small businesses, and a strong belief in overcoming these challenges with a digital-first approach. With this shared commitment to inclusive growth, we are confident that we will be able to accelerate access to opportunities for businesses in the region by turning cutting-edge technologies into real, practical financing solutions.”