- The startup will use the new funding to expand its customer financing;
- Divibank provides credit for small and medium-sized businesses and startups that want to advertise online.
Brazilian fintech startup Divibank has raised a BRL 28m funding boost from cryptocurrency-based investment specialist Goldfinch, just six months after announcing a $3.6 million funding raise.
The startup will use the new funding to expand its customer financing.
Divibank provides credit to small and medium-sized businesses and startups that want to advertise online and finances digital marketing campaigns for these companies on sites such as Google, Facebook, and TikTok.
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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.
Divibank’s charging model is tied to the future monthly revenues of the companies that contract the funding (revenue sharing). Thus, entrepreneurs do not have to give up equity or create debt to invest in marketing.
The advertising line of credit charges interest of 1% to 4% per month, and the minimum amount for contracting is R$5,000 per month and the maximum up to R$250,000 per month. The startup doing the funding needs to have invested in digital marketing for three months and have six months of revenue.
According to Divibank, “the innovative technology and Decentralised Finance (DeFi) movement behind Goldfinch’s funding is aligned with Divibank’s goal to be at the forefront of innovative financing alternatives.”
Through October, the startup has grown an average of 34% per month since its inception, tripled its revenue in the last six months, and increased funding volume by more than 10 times by 2021.
Companies such as Dr. Jones, SIGECloud, Foodz, and Senior Concierge are recurring customers of the fintech and use the credit provided by Divibank to expand the scope of their business, gain new customers and increase their billings. “Our success is directly linked to the growth of our customers. In this time of recovery, it is essential that businesses have access to fast and fairly priced capital to further accelerate that growth,” says Jaime Taboada, CEO of Divibank, in a press release.
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The new contribution also comes into leverage investments in the post-pandemic economic upturn. With companies wanting to recover the opportunities lost during the isolation and the public eager to consume again, Divibank says it wants to be a protagonist of this moment, democratizing access to capital.