Colombian Fintech Company Milio Chosen to Be Part of Y Combinator

The Colombian fintech company, Milio, was chosen to be part of Y Combinator (YC) and received a capital investment from the U.S. accelerator.

YC is an accelerator based in Silicon Valley (USA), which contributed to the success of companies such as Rappi, Frubana, and Platzi.

According to Toni Riera, co-founder, and CEO of Milio, “Y Combinator is the most prestigious start-up accelerator in the world, with less than a 1% acceptance rate. Acceptance into YC means being recognized as a high-potential company, receiving an equity investment, and access to the largest network of investors and entrepreneurs in the world.”

Milio was chosen by Y Combinator from more than 20,000 applicants, of which only 274 were accepted.

Therefore, the team of this fintech company will travel to San Francisco (California, USA) this month, to YC’s facilities, to receive mentoring from entrepreneurs whose companies have a great impact and are publicly traded.

“We will also work together with YC’s network of entrepreneurs to develop and improve our product and value proposition, and we will access a global network of investors,” said Riera.

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Milio transactional credit infrastructure

Milio’s credit infrastructure operation is focused on business-to-business (B2B) trade on a buy now, pay later basis.

In two months of operation, Milio’s allied distributors have already placed 550 credits through the fintech to more than 400 unique merchants, with a high repetition rate. In this same period of time, it has raised significant capital investment from other angel investors.

Juan Luis Pérez Escobar, co-founder and chief operating officer (COO), explained that Milio offers loans to registered merchants with unique tax registration (RUT) ─natural or legal persons─ which, in large part, correspond to micro, small and medium-sized enterprises (MSMEs).

He added that the fintech company’s loans are interest-free and can be paid in terms of 30, 60 and 90 days, according to the profile and risk rating of the merchants.

Milio’s business model consists of charging a fee to the allied distributor that allows it to operate without making the credit more expensive for the merchant that receives it so that, in that sense, it does not pay interest.

It should be noted that Milio works with traditional and tech distributors in sectors such as beauty and care, food, medical, veterinary, and dental products, as well as biosecurity. Among them are La Muela, SEV, or Peakr, among others, which allows access to a network of more than 20,000 unique retailers.

One-click credit purchases

Milio offers plug-and-play functionalities, which allow any type of provider to integrate to the fintech technology infrastructure in minutes, without any knowledge of code or a large development team.

Daniel Gomez, co-founder and Chief Product and Technology Officer (CPO) of Milio, said that through this start-up distributors “will be able to serve their customers from any channel: WhatsApp, calls and online store, using our integrated checkout and payment link service that allows their merchants to buy on credit with a single click”.

Similarly, access to credit is done securely and 100% digitally, from any device, in five minutes.

In addition, Milio provides a transactional credit payment infrastructure that, according to Gómez, “makes it possible to strengthen existing supplier operations under the white label modality. In this case, Milio is in charge of providing the infrastructure and maintaining connections for the entire credit cycle: origination, maintenance and collection, in addition to providing metrics and technical support”.

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(Featured image by mohamed_hasan via Pixabay)

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