Creditas Raises Colossal Funding as Fintech Explodes in Brazil

By Thomas Price Monday, January 4, 2021

The financial world is rapidly modernizing itself across the world. Especially in many nations that are developing extremely quickly, the financial technology sector is oftentimes the largest benefactor of this development. This has certainly been Brazil’s case, where startup Creditas secured major funding in their recent financing rounds. The financial technology startup is one of many different startups that have experienced incredible funding as of late. Investors from all over the world are expecting explosive growth within Brazil in the near future and especially in the early stages of 2021 as economic recovery from the COVID-19 pandemic is set to continue forward. So, what does Creditas do, what kind of funding has it received, and what can be expected from the startup and other financial startups in Brazil in the near future?

What Is Creditas?

Creditas is a financial technology startup based in Brazil. Founded in 2012, Creditas is focused mostly on serving as an online credit platform and lending business for Brazilian clientele. While the business structure and model is nothing unique, Creditas is growing at an extremely rapid rate. Part of the reason for the major growth is due to how large the untapped market in countries like Brazil and Mexico are. In these nations, secured lending and credit are not nearly as widespread as they could be, thus showing off massive potential for expansion by the likes of startups such as Creditas.

One other major factor for growth that benefits the company is the major investing that is happening in the Latin and South American nations as of late. In fact, venture capital firms have invested $2.1 billion in Latin American fintech startup companies in 2020, a colossal increase from the mere $50 million invested in 2014. This sort of financing has, of course, benefited Creditas and their own path toward expansion.

Very recently, in fact, Creditas passed a major milestone with the startup’s credit portfolio surpassing 1 billion reals (about $196.66 million). In combination with the recent round of funding, this has brought the company’s total value up to an absolutely absurd $1.75 billion, showing off just how incredibly lucrative the market for financial lending and credit is in emerging markets. This has led to many different investors taking particular notice of Creditas and bolstering the startup’s already impressive track record so far.

Creditas’ Recent Funding and Future Plans

In their most recent funding round, the startup raised an incredible $255 million. This funding was led by new investors LGT Lightstone, Tarsadia Capital, Wellington Management, e.ventures (an affiliate of Advent International), Sunley House Capital, and prior investors SoftBank Vision Fund 1, SoftBank Latin America DFund, VEF, Kaszek, and Amadeus Capital Partners. With the addition of $255 million, Creditas has raised an impressive $570 million in total capital. With this in mind, Creditas has put together significant goals for the future.

The company’s initial plans will be to first expand the startup’s home and auto lending; This is in addition to a payday lending service based on the salaries of the customer. There also looks to be a buy now, pay later feature in the works for future launch as well. Another major goal of the company is to expand its global reach to new markets outside of Brazil, particularly Mexico.

Creditas is a startup in the growing fintech sector pioneering in regions with developing financial systems. Considering their major funding from extensive groups of confident investors, as well as surpassing the previous milestones the startup set in place, the future of Creditas looks incredibly bright.

About the Author


Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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