Ziff Acquires Arrenda, Targets MX$1 Billion in Loans By 2027

Ziff, a financial solutions provider in Mexico, has announced its acquisition of the digital lending company Arrenda. With this acquisition, the company aims to bolster its credit offerings and address cash flow challenges for 4.46 million small and medium-sized enterprises (SMEs), intending to place MX$1 billion in loans by 2027. 

“There were significant synergies to explore (between Ziff and Arrenda),” said Joe Merullo, founder, and CEO, Arrenda, in an interview with MBN. “(Ziff) had a massive amount of market knowledge, experience, and distribution network in Mexico, and the idea was to combine forces to bring Arrenda’s technology and startup operational experience to build the best company possible.”

Following the acquisition, Ziff plans to expand the distribution of Arrenda's flagship product, Adelanta, a financing instrument for homeowners based on their existing rental contracts. Additionally, Arrenda's network of real estate advisors, comprising over 9,000 individuals known as Arrenda Partners, is expected to play a crucial role in accelerating Ziff's growth initiatives.

The companies’ business model shift, influenced by Arrenda, involves expanding beyond providing financing solely to the real estate sector, explains Merullo. Previously, the company allowed landlords to advance their recurring rent payments for up to one year. Now, the company plans to extend financing to startups, SMEs, or any business with accounts receivable due within the next 36 months. “We are looking at the opportunity as a true B2B financing product rather than a specialty financing product solely serving the real estate sector,” he says. 

Arrenda’s technology will integrate a digital loan origination platform, alongside its loan management system and underwriting models, which currently enable clients to apply for financing instantly and receive immediate decisions. This positions Ziff to directly compete with existing financial institutions and banks operating in the sector today.

Currently, Ziff’s loan portfolio maintains a non-performing rate of 0%, with no defaults recorded. However, notes Merullo, that the current book size does not amount to MX$1 billion, and there is a keen awareness that scaling the book will inevitably bring challenges. “The approach is cautious to avoid encountering issues common to growing lending businesses, a lesson learned from startups,” he says.