Thursday, March 30, 2023
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Brazil-based Creditas purchases a bank and seeks additional funds to boost its profitability.

  • Brazilian lender Creditas is purchasing a banking license and is using the funds to develop the technology behind its operations.
  • The constant acquisitions of the company and new ventures raise one question: is or not it’s working to become a truly great app.
  • Insider Intelligence publishes hundreds of insight, charts and forecasts about the banking industry. Find out the process of becoming a customer.

The latest news: Brazilian lender Creditas has secured funding and has bought an institution in order to improve its profit margins, according to PYMNTS.

More details on this deal: internet-based consumer lending platform has was able to raise $200 million and plans to buy the Brazilian bank license from Andbank which is a Brazilian bank that has around $30 billion of funds under administration.

Creditas will accept deposits from today. The company says retail deposits will increase the platform’s margins.

The deal is valued at $100 million. However, it’s still waiting for acceptance from both Brazil’s Brazilian central bank as well as CADe Brazilian antitrust authority.

The lender also bought the mortgage marketplace Kzas which will allow it to provide additional loans from a variety of lenders.

More information about Creditas The 10 year-old Brazilian fintech continues to take the nation with its disruptive technology. In January it was able to raise $260 million. the bulk of which was sourced from large investor Fidelity which was worth $4.8 billion.

The fintech is focused on insurance, auto loans, and second-hand cars.

Contrary to most fintech firms that offer an open view of its finances. Creditas does not hold credit on its balance sheet instead, it securitizes them and then sells the loans.

It boasts of offering low-cost financing, which is not common in Brazil.

Super app status? Creditas has strategically used its revenues – which increased by 233 percent to $48.6 million between Q3 2020 through Q3 2021 to expand its technology platform.

In 2021, Fintech bought four businesses that included credit and financing company Bcredi as well as Auto insurance firm Minuto Seguros.

Creditas also runs Creditas Auto which is an online marketplace for cars; Creditas Store, an eCommerce platform that is purchase now and to pay later (BPNL) model and Voltz Motor, which offers electric motorbikes.

The money is used to further develop the entirety of Creditas technologies in-house to manage its operations.

Creditas has stated that it wants to become “a one-stop solution for those seeking a digital-first experience in everything related to their house, car, motorcycles, and salary-based benefits.” The company’s constant acquisitions and its new ventures raise the question whether the company is aiming to be a top-quality app.

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