Business

Brazilian fintech Zoop raised a $34 million round from Movile

Zoop bets on B2B financial solutions so that any company can create and offer financial services, such as iFood Digital Account, created by the fintech

Zoop raised a round from Movile
Rodrigo Miranda and Fabiano Cruz, co-founders at Zoop. Photo: Zoop/Courtesy
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Zoop, a Brazilian fintech focused on B2B financial services, has just raised a $34 million round from Movile. This is the third investment made by Movile in Zoop since 2018. The new investment includes new expansion capital for Zoop and the acquisition of secondary shares from current investors such as Darwin Capital. Zoop will use the new funding to fuel the expansion of its operations and drive top-line growth.

Zoop develops financial solutions for other companies in three segments – payments, Banking as a Service (BaaS) and credit. In other words, fintech provides all the technology and regulatory compliance so that any company – be it a startup, a marketplace or even a large company – can create and offer financial services under its own brand. With this model, the company expects to reach 1 million accounts by the end of the year.

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An example of how Zoop works is the partnership with iFood, which resulted in the iFood Digital Account, developed by fintech. With it, the food tech started offering digital accounts for partner restaurants, through which establishments can obtain loans from iFood, among other services. In seven months, the “restaurant bank” already as 150,000 digital accounts. Zoop also developed the solution to include PIX as a form of payment in the iFood app.

“We have a pioneering business model with banking-as-a-service and our white-label technology that we provide for our growing partner ecosystem. Through our comprehensive platform that is constantly updated to meet all Brazilian regulations, companies from any segment can offer safe, high-quality financial services to their own customers, which are generally SMBs,” said Fabiano Cruz, CEO and co-founder at Zoop.

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With more than 600 partners registered on its platform, Zoop reported a growth of 150% in 2020 compared to the previous year, an increase that fintech attributed to the rise of digital transactions due to the pandemic, and to the evolution of the Brazilian financial system itself, which had two great moments recently: the launch of the PIX, the Brazilian instant payment system, and the beginning of the Open Banking. Last year, Zoop processed more than $4 billion in payments.

“We intend to maintain our fast pace of growth and provide the best products and services to support the expansion of the ‘fintech as a service’ trend in the country,” said Cruz.

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The round led by Movile, in fact, follows this upward trend in investments in fintechs – according to LAVCA, it was the top investment sector in Latin America for the last six years. Patrick Hruby, CEO of Movile, explains that the company has created a fintech division to looking at this sector strategically. “We believe every company will be a fintech. Therefore, we are focusing more of our efforts and investments in fintechs,” said Hruby.

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