OMNILATAM

In Colombia, as in Latin America, SMEs are the economy’s engine. According to the Organization for Economic Cooperation and Development (OECD), these generate up to 90% of the jobs in several countries in the region.

With this in mind, OmniLatam was born; the first company in Colombia that provides working capital financing to SMEs in an agile, transparent and 100% online way. This fintech (a provider of digital financial solutions and financial technology) helped these companies to pay their salaries on time, meet their tax obligations and finance their growth plans, freeing them from continuous dependence on cash flow.

In 2020, OmniLatam was acquired by Greensill, the leading provider of working capital solutions worldwide. This led OmniLatam to become Greensill Latam, to expand and provide financial solutions to more companies in Latin America. Before telling all the details of this operation and Greensill Latam’s prospects in the region, it is important to know how this came reality and how the idea of providing financial solutions to companies that have everything to continue growing was built.

OmniLatam grew out of the experiences that members of the founding team faced. They experienced firsthand the difficulties that most Latin American entrepreneurs experience when they are trying to obtain access to quality financial services.

Aware of the great challenge that entrepreneurs face to develop a business, the uncertainty of financial closure each month to meet payments

Underlying asset

Origination to date.

FACTORING

Not Con rmed invoices

CONFIRMING

Con rmed invoices

KT

Invoice lien

US$30 million US$150 million US$20 million

* The numbers refer to the period between January 2018 and December 2019. The monthly source figures are converted to USD according to the average exchange rate for the period.

ORGANIZATION BY COUNTRY

TOTAL: US$111 Million TOTAL: US$124 Million

US$21 Million

US$90 Million

Origination 2018 US$31 Million

US$93 Million

Origination 2019

Total portfolio, 60% Colombia, 40% Chile US $ 30 million as of January 31

*Numbers converted to USD according to the constant exchange rate of 3,300 COP / USD and 700 CLP / USD.

TOTAL: US$18 Million

US$2 Million

US$16 Million

TOTAL: US$26 Million

US$4 Million

US$22 Million TOTAL: US$58 Million

US$29 Million

US$29 Million

* Numbers converted to USD according to the constant exchange rate of 3,300 COP / USD and 700 CLP / USD.

and provide for their families while they build their dreams. OmniLatam created previously non-existent solutions that at this moment are of crucial importance for the local and regional economy. They observed that the existing options did not satisfy entrepreneurs needs when seeking financing: obtaining access to factoring or confirming through banks and traditional entities is not very friendly experience; The processes require several documents and procedures and, even so, when they are approved, they contain unfavourable hidden costs for the entrepreneurs.

When wondering why the system is like this and why there is not a more viable way to support and finance SMEs, a great opportunity was found to create a better way to help them and solve those pains, which for years traditional banking had not resolved.

This is how OmniLatam was finally launched: a financial service capable of financing SMEs, through the purchase of their invoices, immediately, 100% online, completely transparent and without hidden charges.

Since 2017, OmniLatam has financed, with more than 250 million dollars, to about 5 thousand SMEs, which said they were satisfied with the support and quality of customer service offered by this fintech, that is based on solving that problem to which small and medium-sized companies in Colombia face every day.

OmniLatam’s have offices in Santiago de Chile, Bogotá and Medellín.

Transparency: Rates and fees always at your disposal Security: Your data has never been more secure Speed: Disbursement in less than 24 hours. Simplicity: 100% digital without leaving where you are

Diego Caicedo, OmniLatam’s co-founder, became an entrepreneur at 16 out of neediness. He learned on his own to develop software to pay for his university studies and that is how he began helping SMEs throughout Colombia to create their websites.

Diego liked entrepreneurship so much that he later created a coffee export project and later started a company in the mining sector with which he had more than 200 workers. However, during the financial crisis of 2008, no bank wanted to lend him money and did not find places or reasonable rates despite having invoices and contracts with the best companies in the country, something that ensured that he would have future flows to pay any loan. Due to this situation and the lack of liquidity, his company went bankrupt and many people lost their jobs. After this experience, Diego created Portal Finance seeking to offer a solution for the barriers of access to financing for SMEs.

Meanwhile, Andrés Abumohor, OmniLatam’s co-founder, was working in a financial company in Chile that made loans to SMEs. During the time he worked there, he wondered why his own

Diego Caicedo CEO and Andrés Abumohor COO

finance company and other banks were asking for so many documents and did not have the flexibility and transparency to help small and medium-sized businesses. Andrés tried to make changes in the company but had little success. For this reason, he decided to undertake and try to change this situation through his financial institution: Motor Financiero.

Diego and Andrés met by coincidence when the two of them were seeking to solve the same problem, asking the same ambitious question: how to help finance Latin American SMEs by making use of new technologies to improve the customer experience and solve the underlying problem transparently and effectively.

Sharing the experience of owning SMEs and having worked in financial entities, Diego and Andrés decided to partner to create OmniLatam with one goal in mind: to be the ally that small and medium-sized companies need.

Later, Juliana Cadavid -who became OmniLatam’s General Manager in Colombia- met Diego and Andrés when she was trying to support entrepreneurs from all over the country together with her partners. In those days, she was managing one of the first Colombian fintech and pioneers in confirming in the city of Medellín. When Diego, Andrés and Juliana met, they felt a great affinity. Juliana quickly joined the OmniLatam team.

Juliana Cadavid General Manager in Colombia

This is how the three of them joined forces with their companies and own experiences and successfully launched OmniLatam services in Colombia, where they started with a few clients, marking the beginning of their adventure and growth.

Soon OmniLatam’s successful performance drew the attention of venture capital funds from the United States and Latin America such as Magma Partners and Alpha4 Ventures, with whom they worked to finance its growth. This, in turn, caused other banks and asset managers throughout the region to support them.

All these investors supported the fundamental pillar on which this company was founded: to create a solution that, if it existed before, it would have saved Diego’s mining business and many other entrepreneurs in the country and Latin America. Thanks to its founders and investors, the company began to operate in Colombia and Chile supporting ventures, which in turn create thousands of jobs, strengthening the economy in their countries, creating wealth for all entrepreneurs and generating a positive social impact for the entire region.

OmniLatam’s main goal was based on helping, financing and supporting SMEs so that they can be competitive and grow. This was done through the advance of pending invoices and factoring and confirming services: that is, each client delivered their pending invoices receivable and during that same day they received the payment, with a discount from the total value of the invoice. After this, the company took full charge of the final customers, allowing companies to forget about this problem.

OmniLatam began working with large companies in Colombia such as Corona, Renault, Comfama, Images, among others. These companies trusted us to manage their supply chain, helping them sustain their business in the short, medium and long term. By working with partners at this level, OmniLatam gained valuable insight into its supply chains, allowing it to offer more convenient rates to its customers. Even when an SME is not working with one of the associated companies, it could also use the factoring tool.

OmniLatam became a great option for large companies that were looking to simplify and improve their production chain, supporting their suppliers.

The process of a company that wants to be an OmniLatam customer began with the registration on our website. An executive immediately contacted the company, managing to deliver financing on the same day the request was made. The whole process was 100% online. With OmniLatam, everything was designed so that all the processes were done from a computer and so that the entrepreneur could focus on what matters most to him: managing his business and continuing to grow it.

After depositing the money to the customer’s account, OmniLatam started working with the debtor (the company to which the SME sold its product or service), to receive the payment with the original terms of the invoice.

In addition to Diego Caicedo and Andrés Abumohor, OmniLatam now has more than 150 collaborators in Chile, Mexico and Colombia, the majority being located in Bogotá and Medellín.

The team was divided into three areas: technology, support for SMEs and support for large companies. OmniLatam managed to attract international talent, transmitting its vision and consolidating a team that is committed and aware of the nature that characterized the company.

Our team comes from more than ten countries, with diverse experiences, but with something in common: the desire to create a great impact on small and medium-sized companies in our continent.

All OmniLatam collaborators had a stake in the company, thus aligning their incentives with those of OmniLatam, to achieve the fulfilment of defined and jointly agreed objectives. This allowed the employees not to feel like just another executive of a financial institution, but to commit to the interests of the company.

OmniLatam was created to solve SME´s problems with technology. So, we started by building everything from scratch, without all the traditional systems and archaic processes. OmniLatam had a team of more than 75 engineers in Bogota, exclusively dedicated to developing friendly and transparent solutions.

OmniLatam´s system was developed to allow SME´s to apply for loans up to $1million, 100% online and without having to wait for weeks for it to be approved.

As a result of technology, OmniLatam transformed their clients’ lives and at the same time encouraged other financial institutions to innovate using their technology as the basis of their businesses. As an active member of Colombia Fintech and Chile Fintech, OmniLatam was a key part of the growing ‘fintech’ ecosystem that is revolutionizing people lives and SME´s throughout the region.

In addition to having a highly professional team, OmniLatam had the support of important actors from different countries on the continent such as Colombia, Chile, and the United States.

OmniLatam´s investors were venture capital funds such as Magma Partners (fund for the United States and Latin America), Alpha4 Ventures, (Latin American found) and important family offices throughout the region. Also, Colpatría, Itaú, Credicorp Capital Colombia and Coltefinanciera, among others that have been essentials for their growth.

Due to the good results, OmniLatam ‘fintech’ was also highlighted in the main national and international media such as El Tiempo, La República, TechCrunch, LatAm List and Forbs magazine, which recently included its founders in the list of Colombian promises.

On the other hand, Andrés and Diego continue to be recognized opinion leaders that write columns about the latest ‘fintech’ trends in the region. Furthermore, thanks to their hard work, OmniLatam was chosen LatAmList as one of the most important fintech companies with the potential to become the next “unicorn” in Latin America.

Diego is recognized as a young leader for his work in the financial industry. He has been invited to give speeches on different occasions around the world to tell his story with OmniLatam. He has presented his success story at the International Finance Corporation (IFC), Inter-American Development Bank (IDB), London Fintech Week and Lendit, among others.

What customers say about Omni “Excellent Platform. Quick and 100% reliable. I have been working with them for a year and they always have responded” Rafael López Monje General Manager

“Thanks so much for trusting “Montacargas”, for us is very gratifying to be part of this project” Juan Camilo Betancur General Manager

After successfully testing the model in Colombia during 2018 and 2019, OmniLatam´s team decided to land in Mexico, opening a business office there. This projection helped to continue building OmniLatam´s strategy: to consolidate itself as a leader in Latin America and with it to support thousands of entrepreneurs and SMEs throughout the region.

The road has not been exempt from difficulties; however, the essential values and trust of OmniLatam positioned this ‘fintech’ as a key ally of SME´s, paving the way for a unique impact in the region and in those who sustain the economy of nations.

OmniLatam has transformed into Greensill Latam

The accelerated growth of OmniLatam, made Greensill, the market-leading provider of working capital finance for businesses globally, interested in acquiring it. Greensill has financed more than 143bn to more than 8 million customers in more than 175 countries.

The operation, which took place in June 2020 and was highlighted by world-known media such as Bloomberg and Forbes, will unlock the US $750 billion capital for more companies.

The Greensill acquisition process transformed OmniLatam into Greensill Latam.