Brazilian fintech Neon raises $80m to support credit portfolio expansion

Brazilian fintech Neon has raised $80 million in its first credit card-focused Credit Rights Investment Fund (FIDC) as it seeks to create a ‘conscious path to credit’ for millions of people. Brazilians.

Neon raises $80 million to support access to credit in Brazil

This is Neon’s second fundraising in the private credit market this year. She raised over $40 million for her private FIDC payroll franchise in early 2022.

The new fund will be managed by Empírica, which has a portfolio of more than 50 funds and more than $1.5 billion in assets under management.

This latest investment brings the total fund to $170 million, and Neon says it expects that amount to double.

The IFCD will allow the fintech and digital bank to expand its portfolio of credit products “in a sustainable and balanced way”, specifies the fintech. The fund will also allow the company to better leverage its credit analytics technology and models.

Jamil Marques, CEO of Neon, said: “Today our credit engine is mature and FIDC’s resources will give us the strength to continue to grow our portfolio.

“The focus continues to be on the Brazilian worker, and always with the mission of reducing inequality by building pathways to credit.”

Neon ended 2021 with a total credit portfolio of $270 billion and the IFCD will bring more flexibility to its growth strategy.

Along with its existing personal loans, payday loans and credit cards, Neon recently launched its “elastic limit” service, which extends credit for one-time purchases, based on a credit score.

Neon says it plans to launch new solutions that will help its 15 million customers access credit year-round.

Earlier this year, Spanish banking giant BBVA acquired a 21.7% stake in Neon, which, on top of its previous investment from 2018, brings its stake to 29.7%.