- Divibank provides credit to small and medium-sized businesses and startups that want to advertise online;
- It funds those companies’ digital marketing campaigns on sites like Google, Facebook, and TikTok.
Brazilian fintech Divibank announced it has raised a $3.6 million (BRL 20 million) round from the Better Tomorrow Ventures (BTV) fund. The round also had the participation of Village Global, a fund that counts with investors such as Bill Gates, Jeff Bezos, and Mark Zuckerberg.
Completing the round are MAYA Capital (which was already a Seed investor in the fintech), Clocktower Ventures, Magma Partners, Gilgamesh Ventures, Rally Cap Ventures, Alumni Ventures Group, and entrepreneurs Sebastian Mejia (founder and chairman of Rappi), Tayo Oviosu (founder and CEO of Paga), Karim Atiyeh (founder and CTO of Ramp), and Josh Abramowitz and Daniel Simon (founders of Bread).
Divibank provides credit to small and medium-sized businesses and startups that want to advertise online. It funds those companies’ digital marketing campaigns on sites like Google, Facebook, and TikTok.
Founded in 2020 by Colombian Jaime Taboada (CEO) and Brazilian Rebecca Fischer (CPO), Divibank has already received loan applications for more than BRL 83 million. In the last three months alone, the startup claims to have grown 221% in the financed amount.
Divibank’s charging model is tied to the future monthly revenues of the companies that contract the financing (revenue sharing). Thus, entrepreneurs do not need to give up equity or create debt to invest in marketing.
The advertising credit line charges interest of 1% to 4% per month, and the minimum contract value is BRL 5,000 per month and the maximum up to BRL 250,000 per month. The startup that makes the financing needs to have invested in digital marketing for three months and have six months of revenue. “We also look at performance in digital marketing,” Rebecca Fischer, co-founder, and CPO of Divibank, tells LABS.
“We work with the revenue-sharing model, so we combine a percentage of future revenue to be reused as payment. The more the revenue grows, the faster the loan will be repaid,” she explains.
With the fundraising, the fintech wants to create new products, hire people, and develop a software that will help customers manage digital ad campaigns. The startup is also working on additional financial products, targeting e-commerce and SaaS markets in Latin America, with offerings for inventory financing and recurring revenue securitization.
“Today many companies do not have access to specific capital to grow their companies. This capital is non-dilutive, meaning we don’t take equity, like venture capital funds. By not charging fixed installments like traditional banks, we also make it possible for the company to repay the debt as fast as it grows, providing greater freedom for the entrepreneur to invest their own capital in the company.”