DALLAS, Sept. 09, 2021 (GLOBE NEWSWIRE) — Tricolor today announced a $90 million convertible preferred equity investment from funds managed by BlackRock (“BlackRock Funds”), which converts to a minority stake. The new capital will be used to rapidly expand its mission-driven, AI-powered approach to the purchase and financing of high quality, affordable used vehicles for credit invisible Hispanics nationwide. In addition, the infusion of funds will help scale its recently launched software-as-a-service (SaaS) business unit, Tricolor Financial.
Meeting the Needs of Underserved Hispanics
The more than 59 million Hispanics in the United States would collectively rank as the eighth largest economy in the world. Yet, according to the FDIC National Survey of Unbanked and Underbanked Households, 31% of this US Hispanic population has no or limited access to mainstream credit.
Tricolor uses artificial intelligence, nearly 14 years of proprietary customer insights, and over 22 million unique non-traditional credit attributes to provide high quality vehicles and affordable financing for these low-income, credit invisible Hispanics. To date, Tricolor, a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI), has disbursed over $1.5 billion in affordable auto loans as part of its mission to empower underserved customers and provide them a path to a better life.
“For decades, the deck has been stacked against low income or credit invisible Hispanics in the United States when it comes to the purchase and financing of a used vehicle,” said Daniel Chu, founder and CEO of Tricolor. “We’ve proven that our technology and teams can reverse this dynamic, helping people gain access to reliable, affordable transportation. Now, with this investment and the support of the BlackRock Funds, we can grow to help even more people improve their lives.”
National Expansion for FinTech Tricolor
The investment from the BlackRock Funds will be used to expand Tricolor’s business and its affordable financing options into new markets and geographies. Primarily located in Texas and California today, Tricolor is planning rollouts into new states over the coming months.
Additionally, the company recently tapped veteran industry leader Stephanie Hansen to grow its Tricolor Financial business within the used vehicle sector and into adjacent industries. By using this investment to help fuel the growth of its SaaS offering, Tricolor can help other retailers and service providers more effectively meet the needs of low-income, credit invisible Hispanics in the United States.