SoftBank-backed fintech Creditas reaches $4.8 billion valuation in new mega-round

Brazilian fintech raised $ 260 million in its sixth funding round to expand its collateralized loan business in Brazil and Mexico

Sergio Furio, CEO and founder of Creditas. Photo: Creditas/Courtesy
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SoftBank-backed financial technology firm Creditas, which operates a digital platform offering consumer loans, has reached a valuation of $4.8 billion in a new funding round, Chief Executive and founder Sergio Furio said in an interview on Tuesday.

Furio said Creditas decided to raise more capital to safeguard its growth this year and next year, as uncertainty mounts for tech companies amid concerns that the U.S. Federal Reserve will become aggressive in controlling inflation.

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“Markets are a bit chaotic, so we decided it would be good to bring money in” said Furio, adding he found tech investors very concerned about the macro environment.

Creditas has raised a $260 million Series F round to expand its collateralized loan business in Brazil and Mexico. Founded in 2012 by Furio, a Spanish former consultant, the fintech has specialized in loans secured by assets like homes, autos and salaries, credit lines shunned by Brazil‘s biggest lenders.

READ ALSO: Creditas invests nearly BRL 100 million in Brazilian electric motorbikes manufacturer Voltz

Fidelity Management & Research LLC joined as the key investor of this round, along with Spanish fintech fund Actyus and Greentrail Capital. Existing investors such as SoftBank Vision Fund 1 and Wellington Management also invested.

“With collateralized lending they have taken on a complicated problem in a complicated market,” said Will Pruett, managing director at Fidelity, in a statement. “Creditas has become a powerful platform with recurrence and continues to be the best cost alternative for those looking for credit”, says Managing Partner of SoftBank Latin America Fund, Paulo Passoni.

Furio added Creditas plans to use the proceeds mainly to expand its current portfolio of products.

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“We have significant growth ahead across multiple avenues including financial solutions for our innovative marketplaces Creditas Auto (car marketplace), Creditas Store (ecommerce platform with a payroll-deductible buy-now-pay-later model) and Voltz (the largest manufacturer of electric motorcycles in Brazil). Beyond Brazil, we are now accelerating the growth in Mexico, a market that after 18 months of operation has proven to be a strategic engine for growth”, explains Furio.

We believe Creditas can become a true disruptor in the Mexican market being able to democratize access to financial products and consumer solutions alike.

Sergio Furio, Founder and CEO of Creditas

Creditas has grown at a fast pace. Its revenue reached BRL 551.4 million in the first nine months of 2021, more than doubling from a year earlier, while its loans nearly tripled to BRL 2.9 billion ($531.90 million). Still, it posted a loss of BRL 215.8 million.

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