The fund will allow the company to better leverage its credit analytics technology and models
SÃO PAULO, Brazil, July 21, 2022 (GLOBE NEWSWIRE) — Neon, a fintech and digital bank focused on improving the lives of Brazilian workers, today announced that it has raised US$80 million in its first card-focused Credit Rights Investment Fund (FIDC). credit. This investment brings the total fund to US$170 million in equity, and it is expected to nearly double.
“The funding confirms the strength and positive history we have built in managing the credit portfolio over the past few years. Today, our credit engine is mature and the resources of the IFCD will give us the strength to continue to develop our portfolio in a sustainable and balanced way in the medium-long term. The focus continues to be on the Brazilian worker, and always with the mission of reducing inequalities by building pathways to credit”, says Jamil Marques, CFO of Neon.
This is Neon’s second fundraising in the private credit market this year, given that it had already raised just over US$40 million for its FIDC private payroll franchise in early 2022. of the IFCD focused on credit cards was awarded to Empírica, an asset management company with more than 12 years of experience in the market, focused on structured credit and a portfolio of more than 50 funds and more than 1, $5 billion in assets under custody.
“We are delighted with this partnership which began in the first months of the year as a one-time investment in another Neon FIDC, focused on private payroll lending. Based on this good experience, we expanded our relationship to take over the management of the credit card fund. The intention is to bring more comfort and security to investors, including ourselves who, through funds of funds that we manage, have contributed a total of 20 million US dollars to FIDC Neon. This shows an alignment of interests with the other investors in this fund,” says Giuliano Longo, business expansion managing partner at Empírica, adding that the check may increase as the IFCD grows. Besides Empírica, XP and BV have also led investments in the IFCD.
Conscious path to credit
Neon believes it can create a conscious path to credit with solutions and innovations that can help the customer obtain credit in an easy and fair way. Neon recently launched Elastic Limit, which allows credit to be extended for one-time purchases, based on a credit score. Additionally, the company already offers personal loans, payday loans and non-annuity credit cards with special terms. Neon plans to launch new solutions that will help its customers consciously access credit throughout the year.
Neon ended 2021 with a total credit portfolio of US$270 billion and the idea is that the IFCD will bring more flexibility to its growth strategy. The fintech plans to maintain a sustainable expansion of its credit portfolio, which is expected to more than double by the end of 2022. Neon currently has more than 15 million customers.
Neon is a Brazilian fintech founded in 2016 whose mission is to unite technology and design to rethink and simplify people’s financial experience, reduce inequalities, show simpler and fairer financial journeys. With more than 15 million individual and corporate customers, Neon recently achieved a valuation of $1.6 billion after its Series D fundraising, in which Spanish bank BBVA invested $300 million. Neon’s rapid expansion was made possible in part by strategic acquisitions such as MEI Fácil, which offers financial services and education to individual micro-entrepreneurs, in 2019; and the purchase of Magliano Invest, which was the first brokerage firm on Bovespa – the index of the Brazilian Stock Exchange, in 2020. In the same year, Neon strengthened its payday loan portfolio with the purchase of ConsigaMais+ , the main company in the sector, and with the recent acquisition of Biorc, a company that holds the license of Société de Crédit, de Finance et d’Investissement (SCFI). For more information, visit www.neon.com.br or our LinkedIn page.
CONTACT: US Media Contact: Gina Giachetti [email protected] 510-858-8111