Brazilian payments fintech CloudWalk raises BRL 2.1 billion via Credit Rights Investment Fund

The new FIDC was structured by Itaú BBA and Genial and the funds will be used to anticipate credit card receivables to InfinitePay clients

Brazilian payments fintech CloudWalk raises BRL 2.1 billion via Credit Rights Investment Fund
Image: CloudWalk/Screenshot
Ler em português

CloudWalk, the Brazilian fintech company owner of the InfinitePay payment processing platform, announced the raising of BRL 2.1 billion through a Credit Rights Investment Fund (FIDC in Portuguese, a financial solution widely used in Brazilian credit markets) coordinated by the banks Itaú BBA and Genial. This is the second FIDC held by CloudWalk; last December, the company had already raised BRL 1.3 billion. In November, fintech reached unicorn status after getting a $150 million Series C led by US venture capital firm Coatue.

If the Series C funds were used to expand the team and develop new financial products, the amount raised via FIDC will mainly be used to anticipate credit card receivables to serve about 200,000 small and medium-sized companies in Brazil that use the POS terminal and payments platform Infinite Pay.

READ ALSO: Cloud9 Capital: Brazil’s new venture capital fund debuts with an eye on bootstrapped startups

According to CloudWalk, raising BRL 3.4 billion through FIDCs shows the maturity of the company and indicates that the strategy of keeping the focus on customers was right. “We had a very positive experience with the FIDC raised in December. This only confirms our capacity and stability for sustainable growth,” said Pablo de Mello Leonardo, partner and CCO at CloudWalk. “This new funding also brings encouragement and support for the company’s new product launches,” he added.

Founded in 2013, CloudWalk got its start by providing technology to acquirers. In 2019, the fintech launched the InfinitePay payment processing platform, now the portfolio flagship, also starting to operate as an acquirer. In the same year, it bought Confere, a cash flow reconciliation, and financial data aggregator software.

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

The company’s portfolio also includes Payment Link, an e-commerce solution for sales via WhatsApp, Facebook Messenger, and other apps; a digital wallet, which connects merchants and buyers and already has a 300,000 user base; a free online store platform for merchants to create their own online stores; a financial reconciliation program; and, most recently, a cryptocurrency cashback program focused on end-users. To do this, CloudWalk launched a stable coin called Brazilian Digital Real.

“CloudWalk is building a kind of bridge from the traditional payment industry, with the POS terminals and the online stores, to the blockchain market that is emerging now. We believe that blockchain will soon lead all future payment processes. Our goal is to increasingly expand the portfolio of blockchain products to make a mix between traditional payment solutions and new technologies,” said Luis Silva, founder and CEO at CloudWalk, in an interview with LABS last November, when the startup became a unicorn.

At the end of the day, the user does not care about blockchain, cryptocurrency… He wants to receive his money faster, with better rates and in an easy way. This is our focus. The technology behind all of this is not visible to the customer. We don’t sell the technology itself, we sell the faster and cheaper payment solution.

Get the best insights about Latin America market in your inbox