Business models focused on niche audiences have increasingly been attracting large investors in Brazil – such as the recent investment in isaac, a kind of fintech for schools, and the round secured by Divibank, which provides credit for small and medium-sized businesses and startups that want to advertise online.
Following this trend, CondoConta, a digital bank whose thesis is to serve condos – a market, it should be said, of BRL 250 billion –, tapped an investment of BRL 10 million in a round led by the venture capital manager Igah, Ventures.
Founded in 2019 in Florianópolis city by Rodrigo Della Rocca, Marcelo Cruz, and Atílio Borges, CondoConta launched at first a free digital account for condos, with some bank transactions and slips issuance. Then, it started to build products targeted at condos managers.
CondoConta’s portfolio currently includes solutions for accountability in real-time, insurance, credit for financing, and anticipation of condominium fees through Guaranteed Income, a product that guarantees the condominiums’ monthly cash flow while offering more negotiating options to unit-holders.
CondoConta began its operations in April 2020 and is already managing over BRL 50 billion in condominium assets; in the last quarter, it claims to have achieved a growth of 1067%.
Della Rocca, CondoConta’s CEO, says that the investment will be used to boost the launch of new products and expand the fintech‘s operation, which intends to reach all states (only one is missing), in addition, to attracting talents to the team (today with 100 employees). “We still have a lot to do, Brazil has about 500,000 condominiums and 95 million people living or working in them, almost half of the Brazilian population.”
According to Della Rocca, the condos’ major problems have to do with financial management, followed by relationships among unit owners, pets, cars, and structure maintenance. CondoConta wants to reach condos with financial solutions, and then offer solutions for the other issues.
“Our roadmap includes embracing condominiums for their financial life, helping managers, and then connecting expert partners on other fronts. We have a long-term product roadmap,” he explains.
Thiago Maluf, managing director at Igah, Ventures, backs up the thesis of the VC firm’s new investment. “We had been looking at the sector for a long time and had never seen such strong growth. The condos market is huge and extremely underserved by traditional banks. Part of CondoConta’s success comes from offering products designed especially for these clients.”
In March this year, CondoConta had already raised BRL 6.6 million in a Seed round led by Redpoint eventures and followed by Darwin Startups.