Creditas lands funding amid Latin American FinTech boom

Brazil-based online lending solution provider Creditas has raised $260m in Series F funding, reaching a valuation of $4.8bn.

The Series-F round brings Fidelity Management and Research Company as a new key shareholder for Creditas. Other new investors included Spanish FinTech fund Actyus and Greentrail Capital. Current shareholders QED Investors, VEF, SoftBank Vision Fund 1, SoftBank Latin America Fund, Kaszek Ventures, Lightock, Headline, Wellington Management and Advent International, via their affiliate Sunley House Capital, also participated in the round.

Founded in 2021, Creditas describes itself as “the leading FinTech platform for secured and specialised financial solutions”. The company aims to improve the lives of individuals in Latin America across three ecosystems: auto, home, and employee benefits. Creditas’ offering includes digital insurance and consumer solutions.

Creditas said the new capital raised will allow it to accelerate its strategy across its three ecosystems. The company will also continue investing in expanding operations.

The company said, “This is consolidating Creditas as a one-stop solution for those seeking a digital-first experience in everything related to their houses, cars, motorcycles, and salary-based benefits.”

Sergio Furio, founder & CEO of Creditas, said, “We have significant growth ahead across multiple avenues including financial solutions for our innovative marketplaces Creditas Auto (car marketplace), Creditas Store (ecommerce platform with a payroll-deductible buy-now-pay-later model) and Voltz (the largest manufacturer of electric motorcycles in Brazil).

“Beyond Brazil, we are now accelerating the growth in Mexico, a market that after 18 months of operation has proven to be a strategic engine for growth. We believe Creditas can become a true disruptor in the Mexican market being able to democratize access to financial products and consumer solutions alike.”

The Series F round brings the company’s total equity raised to $829m across six funding rounds.

The funding comes during a time of huge growth in FinTech in Latin America. FinTech companies in the region raised $9.7bn by November 2021, boosted by significant funding rounds in Brazil.

Despite the pandemic, investment growth in the region maintained its momentum in 2020, growing by 4.65% year-on-year. This was driven by an increased demand for digital services particularly in the WealthTech and Payments & Remittances sectors.

Creditas’ latest funding round is perhaps a reflection of the strong investor interest in Latin America’s digital technology. BNPL firm Addi recently raised $200m, Brazil-based Nubank launched an insurance product after going public and raising $750m in a Series G round, and Mexico-based Stori secured over $200m in financing following as $125m Series C round and a $75m debt financing haul.

A report by the Financial Times revealed that the CEO declined to comment on whether Creditas was planning on going public.

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