Latin America's neobanks showed growing profits and robust customer acquisition in the quarter, a sign of resilience amid economic troubles.
Creditas aims to reach breakeven in 2023. It has reduced losses for five straight quarters and is repricing the portfolio with higher rates.
Creditas made a bold acquisition in the context of uncertainty, as valuations for many fintechs plunged amid rising rates and volatility.
According to Creditas' recently released figures, the company recorded a loss of $26 million, a 60% drop from the same period in 2022.
Across Latin America, fintech lenders are accelerating profitability strategies amid growing pressure from markets to yield profits.
The Brazilian digital lender added $200 million in its ninth funding round and announced it was buying both a bank and a mortgage lender.
Creditas recently closed one of the largest rounds in Latin American history and has originated more than $100mn in loans since 2011; they company offers loans backed by collateral, charging 17 to 25 percent for their home equity loan and 23 to 50 percent for auto equity loans; this is unique as banks typically charge 120 percent APR on unsecured loans and 480 percent APR on revolving credit cards; having a lower cost, more secure loan has seen them keep defaults around 1 percent and grow the company workforce threefold in the past year alone. Source.