Business

Creditas raises revenues by 24%, but loss weighs 14% more in Q1 compared to 2020's Q4

In 2021's first quarter the firm completed a BRL 160 million warehousing facility with IDB Invest

Kavak's new rival, Creditas announces buying and selling secondhand cars platform. Photo: Courtesy
  • Creditas revenues surpassed BRL 124 million in 2021’s Q1;
  • Contribution margin (discounting funding costs, servicing costs, credit provisions and taxes) stood at 53.1%.

Brazil‘s fintech unicorn Creditas announced on Monday its results corresponding to 2021’s first quarter. Creditas raised revenues by 24% compared to 2020’s Q4, at BRL 124.2 million due to the sustained growth reacceleration started in 2020’s third quarter and expansion of its credit portfolio, it said. The company had a loss 14% bigger than 2020’s Q4, at BRL -64.6 million of net income compared to -56.5 million in 2020’s last quarter.

READ ALSO: Creditas revenue rose 56% in 2020’s Q4 surpassing BRL 100 million

“The continued high quality of our credit portfolio and resilience of debt capital markets enabled us to resume the accelerated growth path that we had prior to the beginning of the COVID 19 pandemic and resulted in a record new loan origination of BRL 420.7 million in the quarter,” it said.

Source: Creditas/Investor Relations

Contribution margin (discounting funding costs, servicing costs, credit provisions and taxes) stood at 53.1% as Creditas continue to increase the leverage of the credit portfolio in line with previous quarter. In 2021’s first quarter the firm completed a BRL 160 million warehousing facility with IDB Invest, a member of the IDB Group, thus continuing its strategy of diversifying funding sources.

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