AVLA raises $25 million to bolster entry into US market

Bermuda-based surety and trade credit insurer AVLA has received a $25 equity investment to support its plans to enter the US market. 

AVLA said the investors in this round included Creation Investments Capital Management, an impact investor in emerging markets. The funding round will also help AVLA’s broader global expansion plans. 

AVLA, which has a Class 3A insurer registered in Bermuda, said it generated approximately $150 million of insurance revenue in 2023 and ranked as a top five provider of surety and trade credit solutions in Latin America, with operations in Brazil, Mexico, Chile and Peru. 

The equity round included participation by DEG Invest, a subsidiary of the German development bank KfW, and Altra Investments, a private equity firm based in Colombia.

Creation Investments, based in Chicago, currently has $ 2.1 billion in assets under management invested in 31 portfolio companies operating across eight countries. Creation first invested in AVLA in 2021.

"We are delighted to continue strengthening AVLA and expanding our business focused on small and medium-sized enterprises in the region,” said Ignacio Álamos, founder and CEO of AVLA. 

"Following our successful entry to Mexico and Brazil, we are aiming to further expand into the United States, with the goal of reaching 150,000 clients and generating revenue of $350 million on a consolidated basis in the coming years." 

"AVLA is a unique growth story combining attractive profitability, strong social impact, and an impressive capability to enter new markets," said Amadeo Ibarra, Mexico country head of Creation Investments and AVLA board member. 

"We are thrilled to invest additional capital to support AVLA's existing operations and technology as well as the company's entry into the US market."

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