Brazil-based mobile payments company RecargaPay has raised $70m with the aim to further develop its platform.
The Series C round was co-led by IDC Ventures and Fuel Venture Capital including participation from ATW, LUN Partners and Experian.
In a bid to improve access to digital financial services for users, the FinTech firm aims to use this cash injection to expand its financial services offerings to small businesses and consumers as well as further develop its subscription program Prime+. The capital injection will also enable the firm to boost its recruitment.
It provides financial services even to people who do not have bank accounts therefore giving them more control of their finances. Through the RecargaPay mobile app, users will be able to apply for and get micro-loans, pay bills as well as send and receive money. Furthermore, the app can be used as a wallet by adding money through cash deposits in stores, or by bank or card transfers.
Given how the pandemic boosted demand for paperless payments, and that the microloan segment in Brazil grew by more than 500% in 2020 alone, it’s easy to see how companies like RecargaPay saw an increase in customers.
Commenting on the importance of digital financial services, IDC Ventures managing partner and former PayPal executive Bobby Aitkenhead said, “Access to loans, credit cards, and other forms of debt remains elusive for many in Brazil and other countries in Latin America, and the region’s digital payments infrastructure has historically been deeply fragmented, and [firms like] RecargaPay [are] a silver bullet that enables instant, cost-effective payments rails and access to credit for all Brazilians.”
Launched a decade ago, RecargaPay has raised over $100m to date with a revenue run-rate of over $50m.
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