Business

Brazil's fintech Mutual sells subsidiary Combate à Fraude for BRL 22 million

Three new executives coming from large financial firms have already been hired to strengthen Mutual's board, which will increase its team by around 50% by the end of the year

Victor Fernandes, co-CEO at Mutual. Photo: Courtesy
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Brazil‘s digital credit platform Mutual has announced the sale of part of its technology subsidiary Combate à Fraude to a group of international entrepreneurs for BRL 22 million. The Combate à Fraude startup does onboarding and fraud prevention management for large banks, e-commerce retailers, and gig economy companies.

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Mutual said it will use this amount to continue developing and expanding credit products and grow its team of employees. In operation since January 2018, the fintech was created as a digital platform that offers credit solutions for businesses and individuals. Currently, Mutual has more than 700,000 users in Brazil and about 11,000 loans made, out of about BRL 50 million transacted through the platform.

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“We want to accelerate the technology for the use of digital credit in the country and by the end of 2022 we will launch six new products to start offering new types of financing,” said Marciliano Freitas, co-founder, and co-CEO of Mutual, in a press release.

According to the exec, these new credit products will feature investment funds, banks, and even individuals as lenders, through the Mutual Invest platform. In addition to the credit lines already available, such as solar energy financing, personal loans and working capital for companies, Mutual’s next credit investment offers will be the loan for companies based on receivables and financing for individuals with car, property, and guarantor as a collateral.

Mutual launched solar energy financing in December last year and estimates to close the year with more than BRL 50 million in loans for the installation of solar panels on homes, commercial establishments, and rural properties.

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The fintech‘s goal is to offer BRL 535 million in loans by the end of 2022. For this year, Mutual wants to reach the amount of BRL 80 million.

Part of the amount of the sale of the subsidiary is already being used by Mutual to strengthen its leadership team. Three new directors have been hired: Paulo Barreiros, Thiago Basso, and Carlos Peçanha take on the roles of chief financial officer, chief credit and risk officer, and chief technology officer, respectively.

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Mutual will also increase its team of employees, which currently has 65 people. By the end of this year, the fintech plans to have 100 employees and, at this moment, more than 20 vacancies are open to working in the technology, product, and administrative areas.

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