Brazil-based Creditas buys bank and raises additional funding to enhance profitability
- Brazilian lender Creditas is buying a banking license and using its funding to build the tech behind its operations.
- The company's continued acquisitions and new ventures beg the question of whether it’s striving to become a super app.
- Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Banking industry. Learn more about becoming a client.
The news: Brazilian lender Creditas has raised funding and is buying a bank as it aims to increase profitability, per PYMNTS.
Insider Intelligence
More on the deal: The online consumer loan platform raised $200 million and is set to purchase a Brazilian banking license from Andbank, a Brazilian bank with roughly $30 billion in assets under management.
Creditas will begin accepting deposits immediately, stating that retail deposits will help improve the platform's margin.
The deal is worth $100 million, but it is still awaiting approval from the Brazilian central bank and CADe, Brazil's antitrust regulator.
The lender also purchased mortgage marketplace Kzas, which will allow it to offer even more loans from various lenders.
More about Creditas: The 10-year-old Brazilian fintech has continued to take on the country by storm. In January, it raised $260 million, part of which came from major investor Fidelity, and was valued at $4.8 billion.
The fintech specializes in auto loans, insurance, and used cars.
Unlike most fintech companies, it provides transparency into its financials. Creditas doesn't hold loans on its balance sheet, but rather securitizes them and sells them.
It prides itself on offering cheap finance—something that is rare in Brazil.
Super app status? Creditas has been strategically using its revenue—which increased 233% to $48.6 million from Q3 2020 to Q3 2021—to build out its platform.
In 2021, the fintech acquired four companies, including credit and financing provider Bcredi, and auto insurance firm Minuto Seguros.
Creditas also operates Creditas Auto, a car marketplace; Creditas Store, an ecommerce platform with a payroll-deductible buy now, pay later (BPNL) model; and Voltz Motor, which offers electric motorcycles.
The new funding will be used to develop all of Creditas' technology in-house to run its operations.
Creditas has said it desires to be "a one-stop solution for those seeking a digital-first experience in everything related to their house, car, motorcycles, and salary-based benefits." Its continued acquisitions and new ventures beg the question of whether it's striving to become a super app.
Want to read more stories like this one? Here's how you can gain access:
- Join other Insider Intelligence clients who receive Banking forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
- Explore related topics more in depth. >> Browse Our Coverage
Current subscribers can access the entire Insider Intelligence content archive here.