A new player is landing in Brazil to compete for a share of the B2B market: US fintech company Tribal, a payment and financing platform for small and medium-sized businesses, has just announced its debut in the country after securing a $60 million Series B round led by SoftBank Latin America Fund. The funding was also joined by Coinbase Ventures, BECO Capital, QED Investors, and Rising Tide.
Founded in 2019, the startup presents itself as “the all-in-one payment solution for small businesses,” specializing in offering financial products for businesses in emerging markets. From the start, Tribal has looked closely at Latin America, where it already has operations in Colombia, Chile, Mexico and Peru. Among the startup’s clients are companies such as Ben & Frank, Grupo Anderson, Mora Mora, Cerveza Rrëy, SkyAlert, Chop Chop Bikes, Wax Revolution, Mi Águila, Frubana, TUL and Crehana.
Sonia Michaca, Tribal’s manager for Latin America, explained that Brazil was a strategic and natural choice since the country is the largest Latin American economy. “We see in the Brazilian market the barriers of access to corporate credit, even to generate global payments. Companies need this product, but find many bureaucracies for approval. We want to be the springboard for the growth of companies in a safe, digital, and fast way,” she said.
The startup comes to Brazil with a complete portfolio of financial services to optimize the management of SMBs, including corporate cards in different currencies, local and international payments, credit lines for purchases, and an expense management platform to track and control spending. At this first moment, Brazilian SMBs can sign up and get on a waiting list to join the services.
Also, with demand growing for better online B2B banking experiences since the pandemic started, the company expanded its payments and financing products to include Tribal Pay, helping customers settle non-card purchases and benefit from extended payment terms.
The funds raised in Series B will speed up Tribal’s expansion in Latin America, by building local teams to keep up with demand. According to Amr Shady, Tribal’s CEO, the company has increased business volume in the region by 90 times last year. The startup plans to open more than 100 jobs by the end of the year to cover the Brazilian market; it currently has 230 employees around the world.
Series B comes less than a month after a $40 million debt round led by Partners for Growth (PFG) and the Stellar Development Foundation (SDF). In April 2021, the startup raised its $34.3 million Series A, this time led by QED Investors and followed by PFG and SDF. In all, Tribal has now raised $140 million.
In addition to the investment round, secondary shares were used to add cryptocurrencies and strategic investors such as Circle Ventures, AGE Fund, Third Prime, Canas Capital, and Acuity Ventures.
“Very few companies can bring TradFi and DeFi together in such an innovative way. We are excited about partnering with the startup, especially as they expand lending companies in emerging markets,” Shu Nyatta, managing partner of SoftBank Latin America Fund said in a statement.