Creditas, a provider of online secured loans in Brazil, has closed a $19 million funding round which included investment from World Bank member, International Finance Corporation (IFC), Naspers Fintech, Redpoint Eventures, Kaszek Ventures, Quona Capital and QED Investors; the financing marks the first investment in fintech from IFC, a global leader in emerging market private sector investments; the firm plans to utilize the new capital for new distribution channels, technology innovation, platform growth and market positioning; additionally the firm also plans to reduce its minimum interest rate from 2.15% to 1.99% per month, which is compared to the average consumer lending rate in Brazil of 7.20%. Source
Brazil's teenage-focused neobank Z1 received a $10.4 million investment to build new products to cater to young adults as well.
Celcoin wants to make its BaaS service a one-stop-shop for these types of solutions to meet the growing demand in the Brazilian market.
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Creditas, a provider of online secured loans in Brazil, has raised $16 million from the asset-backed securitization market and will use the proceeds to fund auto loan refinancings; the firm partnered with Empirica Investimentos Gestao de Recursos Ltda to launch the securitized investment portfolio, FIDC Empirica Creditas Auto; Creditas seeks to capitalize on an auto loan refinancing market opportunity that has seen increased risk from higher defaults with decreased lending from traditional banks; Brazil reports secured personal credit accounts for 1% of the country's outstanding loans; Creditas plans to offer auto refinancing at monthly rates of 1.99% to 3.65% for an annual rate of approximately 37% which compares to bank rates annually of 120%. Source
Cortex collaborates with several fintechs and giants of the financial market in Brazil, such as BTG Pactual and XP.
Companies around the South American country are driving a movement towards the "fintechtization" of the sector.
Low multiples could lead to strategic fintech M&A as companies with abundant capital take the opportunity to scoop deals.
Creditas aims to reach breakeven in 2023. It has reduced losses for five straight quarters and is repricing the portfolio with higher rates.
Creditas is an online secured loan provider in Brazil; the company has announced the release of its 2017 Brazil Lending Market Report which provides an overview of the country's trends in consumer lending; also reports on market metrics including interest rate spreads and outstanding debt by lending categories. Source