Brazilian exchange receivables firm Cerc is set to raise about $100 million from venture capital funds as the financial technology company prepares for an initial public offering (IPO), its founder and chairman told Reuters.
“We are negotiating funding with up to five fund investors to invest in new businesses,” Cerc’s Marcelo Maziero said. “We should close in 2022 ready for an IPO, we are ready for that.”
Maziero’s comments come at a time when Cerc’s business has been increasing rapidly, supported in part by changes introduced by Brazil’s central bank in June last year making it mandatory to register credit card receivables on electronic platforms.
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That regulatory change helped boost the company’s revenue 10-fold and the sector is expected to grow again in 2022, albeit at a slower pace, said Maziero.
At the same time, Cerc has been making progress in other businesses, such as its clearing house and central depository for assets which should be operational by the end of the year.
Cerc has already applied to the central bank to register the business and will also request authorization from the Securities and Exchange Commission (CVM) in April.
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Maziero said that as the firm was expanding on many fronts, it would invest in increasing its workforce from about 150 now and eventually look at potential acquisitions of startups.
Founded in 2015, Cerc’s initial focus had been to provide an online platform for factoring deals, acting as an alternative to notaries, to help the owners of the receivables use them as collateral to get cheaper credit.