Experian Ventures, the venture capital investing arm of Experian, has announced its investment in Palenca, the leading Income and Employment Verification services provider in Latin America.

The investment is already yielding significant results, as a commercial agreement has been formalized with the integration of Palenca's technology into the Serasa Experian's analytical intelligence. This collaboration aims to create new solutions to financial institutions needs regarding income and employment analysis.

Palenca already covers over 115 million workers, ranging from gig workers to formal employees, and collaborates with over 70 clients including leading financial institutions and fintechs in Mexico, Brazil and Colombia like Banco Falabella, Rappi, Galgo and Neon. These companies use Palenca’s API to verify their users ability to pay to offer tailored financial services.

"We are excited to expand our solution into Brazil, the largest economy in the region. Not only does it account for two-thirds of the workforce in Latam, but it is also a pioneer in financial services and Open Finance solutions. Partnering with Serasa allows us to integrate our technology into their products and services, enabling us to accelerate our expansion and concentrate on further product development in Brazil." - José Carlos Aguilar, Co-CEO of Palenca.

"Working as an independent contractor is a reality for many Brazilians who earn income through gig economy platforms. However, obtaining quality credit with this type of employment profile can be challenging due to the variability of their income. For some time, we have been dedicated to fostering a robust credit environment. Our investment in Palenca, a leader in income verification solutions, aligns with our principles, ultimately benefiting Brazilians." said Rodrigo Sanchez, Vice President of Credit Solutions, Serasa Experian.

"This is another advancement, part of the startup investment strategy that Experian's Venture Capital (VC) arm carries out in Latin America. This move allows us to deeply understand high-value markets in which we want to act as development catalysts, establishing partnerships to accelerate the ecosystem and internal initiatives. We also continue to strengthen our investment and organic growth strategies as a company, a fundamental driving force that, together with investments and acquisitions, optimizes our ambition to democratize access to financial products for the population," said Fabrini Fontes, Chief Investment Officer of Serasa Experian.

With this investment, Experian Ventures joins Palenca’s line-up of investors including Y Combinator, Gilgamesh Ventures, Foundation Capital, 500 Global, among others.