Digital credit platform Creditas announced today it has closed a $19 million Series B round led by the International Finance Corporation. The capital infusion is earmarked to new distribution channels and reducing the minimum rate from 2.15 to 1.99 per cent, a fraction of Brazil’s average consumer lending rate of 7.2 per cent.
“With the new round and joint efforts to distribute secured loans, I’m certain we can increase participation of this type of loan in Brazil’s credit market,” Creditas CEO Sergio Furio said.
International Finance Corporation led the round, the first time they have done so for a Brazil-based institution. The global financial institution is a member of the World Bank and is dedicated to the private sector of emerging markets. Naspers Fintech participated in the first investment from its new Latin American branch.
Current investors Redpoint Ventures, Kaszek Ventures, Quona Capital and QED Investors also participated.
“Creditas’ technology allows Brazilians to leverage their assets to make business investments or finance large expenses at interest rates that ensure financial freedom,” IFC’s leader for fintech investments in Latin America Kai Schmitz said. “The company is an example of financial technology that does not only benefit consumers but also traditional financial institutions, which can use Creditas to reach new customers with innovative and attractive products.”