Brazilian broker XP launches BRL 400 million fund for SMEs with One7, Acqio, and BNDES

The credit fund aims at providing capital to small and medium-sized businesses hit by the pandemic

XP launches BRL 400 million fund for SMEs with One7, Acqio, and BNDES
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XP Asset Management, XP’s asset manager, in partnership with One7, a company focused on the corporate credit industry, Acqio, a fintech that operates as an acquirer and develops payment solutions for the retail sector, and Brazil‘s National Bank for Economic and Social Development (BNDES, its Portuguese acronym), launched a credit fund about BRL 400 million to provide capital to companies that were affected during the COVID-19 pandemic.

From the total, BRL 320 million will be infused by BNDES, BRL 60 million will come from funds managed by XP Asset, and BRL 20 million from One7.

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The fund is the outcome of a call for proposals launched by the BNDES in May 2020 and has a six-year term. It will offer two product lines: working capital line of credit with real guarantees, composed of real estate, vehicles, trade bills, and card receivables (in partnership with Acqio, focused on micro-companies); and trade bills.

This is the first product developed by XP Asset with BNDES and follows the heated market of financial and credit solutions aimed at micro, small, and medium-sized companies, an audience disputed by large banks, fintechs, and management companies.

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Filipe Mattos, head of Special Situations at XP Asset, explains that the fund’s purpose is to infuse capital into businesses that most need access to financing. “With this, we foster a part of the Brazilian business community that is essential for Brazil‘s development,” he says.

João Paulo Fiuza, CEO of One7, and Felipe Valença, CEO of Acqio, emphasize the importance of fostering credit granting for the small ones. “Our client is the small businessman with a wide demand for financial products and services, and the credit offer in Brazil is still scarce and concentrated in the big Banks”, explains Valença.

In total, the BNDES’ public call launched last year calls for the injection of up to BRL 4 billion in credit funds towards MSMEs.

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