Business

Brazilian fintech Open Co raises BRL 1.5 billion via Credit Rights Investment Fund

BRL 1 billion came from Goldman Sachs and the other BRL 500 million was raised with local investors and the company's own resources

Open Co founders Geru and Rebel — Rafael Pereira, from Rebel, and Sandro Reis, from Geru: merger created the holding company Open Co. Photo: Open Co/Courtesy

LABS

20.Apr.2021 12:59 BRT
UPDATED 13:59 BRT

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Open Co’s FIDC takes place less than a month after the company raised a BRL 150 million round led by the International Finance Corporation (IFC);
The FIDC will be used to expand the offer of credit at reduced rates.

Brazilian credit fintech Open Co announced the raising of BRL 1.5 billion through a Credit Rights Investment Fund (FIDC in Portuguese, a financial solution widely used in Brazilian credit markets). Of this amount, BRL 1 billion came from Goldman Sachs and the other BRL 500 million was raised with local investors and the company’s own resources.

Open Co’s FIDC takes place less than a month after the company raised a BRL 150 million round led by the International Finance Corporation (IFC), linked to the World Bank, and followed by Goldman Sachs, Raiz Investimentos, Monashees, LTS, Chromo and Sampa.

According to Open Co, the FIDC will be used to expand the offer of credit at reduced rates – the flagship service of the fintechs Geru and Rebel, from whose merger Open Co was born in early 2021. The flexibility of the FIDC will make it possible to grant credit to people who previously could not obtain loans.

The funds from the equity round announced in March will be used to hire, grow the customer base and develop new products.

Before the merger, Geru and Rebel had granted BRL 1.5 billion in credit at reduced rates. Now, the forecast for this year is that Open Co will grant another BRL 1 billion in credit.

According to Open Co, the round and the FIDC came to consolidate the merger and start expanding the business.