Mexican fintech company OCN, which offers car rental models for gig workers in Mexico and the US, has successfully raised $86 million in equity and debt.
The Series A funding round was led by Brazil’s Caravela Capital, with additional contributions from Collide Capital and Great North Ventures on the equity side, and New York-based i80 Group leading the debt portion.
Innovative Solutions For Gig Workers
Launched in 2022, OCN provides gig workers with new car rentals on a weekly fee basis, inclusive of maintenance and insurance.
Users also have the option to purchase the car at the end of a 36-month contract.
The company operates in 22 Mexican states, including major metropolitan areas such as Mexico City, Monterrey, and Guadalajara, and recently expanded to South Florida.
OCN has already served over 25,000 customers, demonstrating its significant impact and reach.
OCN employs a risk assessment analysis to extend services to gig workers who would typically be declined by conventional leasing companies or financial institutions.
Strategic Investment For Growth And Expansion
The company now plans to use the funds to enhance its tech infrastructure and expand its upper management team.
“When we founded OCN, we always had a vision of helping thousands of gig workers earn more and improve their lives,” said Co-Founder and CEO Mairon Sandoval in a press release.
“With our new financing, we can continue to improve our technology and operational capacity to reach more gig economy workers in Latin America as well as the United States.”
The funding round arrives amid a slowdown in venture capital dealmaking in Latin America, which has reached its slowest pace in six years.
This deceleration is partly attributed to reduced investments from US investors due to high US interest rates.
Looking ahead, OCN plans to use its risk assessment tool to offer additional financing products beyond car rentals.
The company is also eyeing further expansion in the US and Mexico, with detailed plans to enter the Brazilian market by 2025.
Feature Image Credit: Mairon Sandoval/ X
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