Brazilian fintech Creditas to raise $200 million from investors

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Managing Director of Sao Paulo-based fintech Creditas Solucoes Financeiras Ltda, Sergio Furio, said in an interview that the company is currently working with various investors to raise $200 million. He also said that Creditas planned to buy financial institutions such as a bank and a mortgage startup.

Creditas, founded in April 2012 as a fintech start-up in São Paulo by Sergio Furio, is currently valued at nearly US$4.8 billion. Various other media reports suggest that in the US stock market’s valuation scheme, the company is valued close to $10 billion.

With four offices in Brazil, one in Spain and one in Mexico, Creditas is the second most searched startup by Brazilians according to a survey conducted by LinkedIn. Currently, more than 1600 people work in various segments of Creditas.

In banking, Creditas plans to purchase a Brazilian banking license from Andbank, based in Andorra, which would allow the company to operate as a bank in the country. Hence, the company can increase its footprint from online consumer lending to the banking sector itself, which involves investments and huge credit activities.

Sergio Furio, founder and CEO of Creditas

The media suggests that after the banking license agreement, Andbank will become a minority shareholder of Creditas.

Andbank CEO Carlos Aso said the deal will help the bank reduce its capital requirements, which, in turn, would help the private banking firm grow in the wealth management segment.

After the agreement, Andbank would continue to operate as a credit broker-dealer. The investor credit portfolio in Andbank would be managed by Creditas using its credit products.

The licensing deal, worth nearly $100 million, would only go ahead if Brazil’s central bank, Banco Central do Brasil and the country’s antitrust watchdog, CADE, give their go. green.

According to regulations and guidelines, Creditas Bank would have nearly $83.5 million in regulatory capital.

Creditas, which was previously known as BankFacil, completed its first and second funding rounds in 2014 and 2015. The International Finance Corporation (IFC), the World Bank and renowned investment holding company Naspers, along with a few other investors, financed Creditas with nearly 60 million Brazilian reals.

One of the largest rounds of investments took place in June 2019 when Japanese investment group SoftBank, Vostok Emerging Finance, Santander InnoVentures and Amadeus Capital invested nearly 900 million Brazilian reals.

Creditas currently provides financial credit products such as loans with property as collateral (known as home loans) and car collateral loans. A Creditas customer can apply for up to 150,000 reals as vehicle refinance loans.


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