Ziff, a leading financial services provider in Mexico, has successfully acquired Arrenda, an innovative online lending company, in a strategic effort to bolster its lending offerings. This acquisition marks a significant step forward in Ziff's commitment to addressing cash flow challenges faced by 4.46 million small and medium-sized enterprises (SMEs) in Mexico and supporting the country's $9.23 billion commercial real estate market.
Founded in Mexico City in 2022 by Joe Merullo, Arrenda has distinguished itself with a unique financial product that evaluates businesses based on their steady income streams. It provides financing equivalent to up to 36 months of future earnings, a solution particularly suited for the dynamic needs of Latin America's real estate market. Arrenda's flagship product, Adelanta, employs proprietary risk assessment algorithms and technology to enable property owners to convert future rental income into immediate cash within 24 hours.
With the integration of Arrenda's technology and products, Ziff plans to extend its services across Mexico, aiming to deploy over $1 billion pesos in liquidity to empower Mexican SMEs by the end of 2027. This initiative is in direct response to the financing gap faced by SMEs, many of which lack the credit history required by traditional financing models. By adopting Arrenda's approach of funding based on future receivables, Ziff introduces a revenue-based financing model that promises to bridge a significant portion of the $163 billion global financing gap identified by the SME Finance Forum.
Post-acquisition, Arrenda's founder and CEO, Joe Merullo, will join Ziff's executive team as Chief Technology Officer. Merullo brings with him a wealth of market knowledge and extensive experience in financial technology, promising to contribute significantly to Ziff's strategy. Under his guidance, Ziff plans to scale Adelanta and enhance financing options for property owners with existing rental contracts, leveraging Arrenda's vast network of real estate advisors to fuel further growth.
Ziff stands as a beacon of innovation and customer-centric services in the Mexican financial sector. Through its acquisition of Arrenda, Ziff not only expands its product offerings but also reaffirms its dedication to transforming the financing landscape for Mexican businesses. By integrating Arrenda’s advanced technology and financial products, Ziff is poised to make significant strides in providing creative financing solutions that ensure stability and growth for Mexican entrepreneurs.
