Business

Brazil's fintech C6 Bank raises BRL 1.3 billion round

C6 Bank's currently evaluation is BRL 11.3 billion; the round came from 40 investors

Brazil's fintech unicorn C6 Bank. Photo: Shutterstock
  • The group will invest in increasing the customer base;
  • C6 Bank is also targeting new business’ lines.

On Wednesday, Brazil-based neobank C6 Bank announced that it raised BRL 1.3 billion from a group of about 40 private investors, which evaluated the digital bank at BRL 11.3 billion.

READ ALSO: Almost 25 million PIX keys were registered in five days

C6 Bank’s president Marcelo Kalim said that with the capital increase resulting from the infusion, the group will invest in increasing the customer base, expanding the investment platform, and advancing in new lines of business.

With more than 4 million accounts, C6 Bank has around BRL 5.3 billion in total assets and a credit portfolio of around BRL 4 billion.

READ ALSO: More than 720,000 users received the emergency aid amount using Nubank

Headquartered in São Paulo, C6 has a bank in the Cayman Islands, a brokerage in New York, and another in São Paulo. The group includes payments company PayGo, insurance company Som.us, payment application developer Setis and the edutech Idea9. The group has 1,400 employees, 325 business consultants, and 12,000 banking correspondents.

On Thursday, Brazil Journal explained that the new investment raised was, in fact, a private bank operation, not leading to a classic evaluation of the bank’s market value. “The BRL 1.3 billion raised by C6 is a fixed income operation: a two-year term convertible debt instrument issued by the holding company Carbon, which controls the bank, and not by C6 itself,” wrote the BJ journalist, Geraldo Samor. “When announcing the transaction, C6 said it was valued at BRL 11.3 billion, generating comparisons with competitors (…) But this valuation is only indicative, a reference value to mark the price that C6 expects to achieve in its (future) IPO”.

(Translated by LABS)

*This story was updated on Thursday.

Get the best insights about Latin America market in your inbox