São Paulo-based B2B fintech TruePay announced this Tuesday (23) a $ 32 million Series A. The round was led by Addition, the new venture capital fund owned by Lee Fixel (ex-Tiger Global Management).
TruePay created a payment solution to help access credit for small and medium retailers. The startup’s “buy now, pay later” solution allows retailers to obtain credit using card receivables as a form of payment.
With the capital injection, fintech will expand the development of its technologies, increase its service capacity and hire new employees. According to fintech, the goal is to grow up to 10 times by the end of 2022.
Founded by Pedro Oliveira and Luis Eduardo Cascão in December 2020, TruePay has already reached thousands of customers, operating in all Brazilian states.
“For us, a round of this kind brings the dimension of the impact that TruePay will make in the market by offering free credit to millions of small and medium retailers in Brazil. The round also confirms the fantastic work that our team is doing”, says TruePay’s CEO and co-founder, Pedro Oliveira.
“This round will be the fuel for us to continue transforming the reality of small and medium retailers in Brazil. Along these lines, most of the investment will be used to attract and develop the best talent in Brazil and elsewhere, with a focus on software, product, data and design engineering professionals,” explains COO and co-founder of TruePay, Luís Eduardo Cascão.
TruePay is building a network of B2B payments, where sellers (industries) grant credit without being exposed to default risk (TruePay guarantees payment) and where buyers (merchants) access to credit to buy inventory from their suppliers costlessly.
Using the startup’s solution, retailers can access better payment terms with their suppliers, making larger purchases with more time to pay — freeing up working capital from their operations.
In September, the company had already raised a seed round of BRL 35 million, led by Kaszek and Monashees, two of the largest venture capital funds in Latin America.