- Since its creation, the fintech has raised more than BRL 550 million in investments;
- The contribution will allow RecargaPay to increase its offer of financial services for small businesses and consumers.
RecargaPay, mobile payments and digital financial services startup in Brazil, raised more than BRL 385 million that will be used to improve its all-inclusive payment platform. The Series C round was co-led by IDC Ventures and Fuel Venture Capital, with participation from ATW, LUN Partners, and Experian.
Since its creation, the fintech has attracted more than BRL 550 million in investments and currently operates with positive EBITDA and annualized revenue of BRL 275 million.
The investment will allow RecargaPay to increase its offer of financial services for small businesses and consumers, including the improvement of its subscription service, Prime +. The company already has more than 300 employees in Miami, São Paulo, and Buenos Aires and the round will enable the recruitment of more talents around the world.
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Founded in Brazil in 2010, RecargaPay set out to provide a comprehensive, easy-to-use, and affordable financial services ecosystem even for people who do not have bank accounts. The application allows users to request and obtain microloans, recharge their cell phones and transportation cards, pay bills, send and receive money and buy gift cards. Users can also add money to their digital wallets through deposits, bank transfers, cards, or Pix.
The COVID-19 pandemic boosted demand for the fintech’s services, with the microloan segment growing by more than 500% in 2020 alone.
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“We are proud to help so many people with their essential payments during a time of crisis and challenge, but we know that the usefulness of our platform is long-term, as even bank customers continue to seek RecargaPay to carry out transactions easily and convenient, ”said RecargaPay founder and CEO, Rodrigo Teijeiro, in a press statement.
The CEO also hopes to expand the platform to other markets, with support from the international team. For Bobby Aitkenhead, IDC Ventures Managing Partner and former PayPal executive, access to loans, credit cards, and other forms of payment remains elusive for many in Brazil and other Latin American countries, and the infrastructure of digital payments in the region has historically been deeply fragmented.
“For this reason, RecargaPay is the key that allows instant and economical payments and access to credit for all Brazilians,” said Aitkenhead. “I look forward to accelerating the company further in 2021 and bringing its robust ecosystem to more people and small businesses.”
