Brazilian loan firm Creditas raises $ 255 million as fintech explosion in Latin America continues – TechCrunch
Credits, the Brazilian lending firm, has raised $ 255 million in new funding as financial services startups across Latin America continue to attract massive amounts of cash.
The company’s credit portfolio has crossed 1 billion reals ($ 196.66 million) and the new round values the company at $ 1.75 billion thanks to $ 570 million raised in external financing over five rounds.
Creditas is the latest company to benefit from a boom in start-up investments in financial services in the region. At the dawn of the year, venture capital investments in fintech startups in Latin America increased from $ 50 million in 2014 to $ 2.1 billion in 2020 through 139 transactions, according to a CB Insights report.
Investors in the cycle include new investors like LGT Lightstone, Tarsadia Capital, Wellington Management, e.ventures and an Advent International affiliate, Sunley House Capital. Previous investors including SoftBank Vision Fund 1, SoftBank Latin America DFund, VEF, Kaszek and Amadeus Capital Partners have also returned to invest more in the company.
“Creditas is still in its early stages of penetrating the huge untapped market for secured loans in Brazil and Mexico,” Paulo Passoni, managing partner of SoftBank Latam fund, said in a statement.
The growth of the company is a testament to both the need for new lending products across Latin America and the insight of investors like Kaszek Ventures, whose portfolio has included several massive betting gains on startups targeting global markets. financial services in Latin America.
“The journey since our investment in Series A has been absolutely extraordinary. The team implemented their vision and Creditas has grown into a lightweight asset ecosystem that solves the primary financial needs of its clients throughout their lifetimes, ”said Nicolas Szekasy, Managing Partner of Kaszek Ventures, in a statement. .
Another big winner is Redpoint’s e.ventures fund, which has focused on investing in Latin America for the past few years.
“By enabling Brazilians to take control of their credit needs at reasonable rates, Creditas is creating a popular consumer product that will generate significant value for customers and investors. Having been involved from the start-up stage through Redpoint e.ventures, we are delighted to support the company with our Global Growth Fund as they are changing the Brazilian fintech landscape, ”said Mathias Schilling, co-founder and managing partner of e. adventures.
Creditas plans to use the money to expand its home and auto loans, as well as a payday loan service based on customer wages and a retail option to buy now, pay loans later based on customer pay. salary of a client.
The company is also looking to expand into other markets, with a view to establishing itself in the Mexican market.
Founded in 2012, when the founders worked in a five square meter office on Berrini Avenue in São Paulo, the company now has a strong business with hundreds of employees and a business built on a lending market. secured and independent home and auto loans. operations.
The company also released quarterly results for the first time, showing losses dropping from R $ 74.9 million to R $ 40.5 million in the quarter last year.