Debt negotiation startup QueroQuitar announced on Wednesday that it has raised a BRL 15 million round led by doValue, a European financial institution. The fintech plans to use the investment in technology, data, and marketing.
The startup was born in 2015 as a platform to help people in debt pay debts so that the debtor could see the debts and select the best options to settle the debts in a digital negotiation process.
Marc Lahoud founded the fintech with Artur Zular and Alencastro Silva, who have experience in retail, healthcare, and financial markets. The company was invested in by Wayra, Telefónica‘s accelerator, and was approved in Bradesco’s first innovation program, Inovabra. In June 2016, the startup began operating in the digital billing market.
A year later, the startup got banks and institutions to withdraw exclusivity contracts they had with traditional collection advisors so it could offer negotiation with creditors. “Today we operate in the open sea here, meaning QueroQuitar has access to all the debtor’s debts within that creditor,” Lahoud explains in an interview with LABS.
“How would we go in to compete in a credit recovery portfolio that was exclusive to another player? So it was a year of stage work evangelizing the market so that people understood that it would be possible. It would only be possible to have a friendly channel, geared towards the consumer if there was a change in the exclusivity clause, and this worked out well”.
Today, it works like this: companies connect their credit portfolios to recover on QueroQuitar’s marketplace, which, can access debtors’ debts to verify debts for negotiation. “The debtor can find the debt and see the offers that he may have to settle that debt, select what fits in his pocket and pay directly to the creditor without human intervention, without being ostensibly collected by a collector,” he said.
The startup has already negotiated debts of 57 million debtors with 77 million contracts under management, as each person usually has more than one debt.
After attracting the debtor to the platform through ads on social networks, for example, with the agreement closed, the startup monitors the payment of each installment and issues alerts so that the debtor does not forget to make the payment. The service is free for the debtor. QueroQuitar is paid by the companies that intermediate debt negotiations, such as Santander, BMG, and retailers.
Last year, the startup made 570,000 negotiations, generating more than BRL 620 million in agreements. “The Brazilian market has 64 million negatived Brazilians and 5.6 million companies in the same situation. These are massive volumes that show a social pain and QueroQuitar has this role not only to recover credit for companies but to rescue this debtor to a status of a more sustainable consumer.”
The startup has 62 employees and with the investment, it has doubled its team. For next year, the goal is to maintain the company’s growth of 200% achieved this year.