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Brazilian Fintech of Buy Now Pay Later Pagaleve raised of US$25M to improve its technology

September 2, 2022
Por
Gustavo Brigatto
Gustavo Brigatto
Fundador e Editor-Chefe do Startups
📷
Blog do Fábio
The round also had a debt component (venture debt), led by a U.S. investment fund, which should be revealed along with more details in the future, according to said fintech in a press conference on Monday (29).
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Series A funds Entrée Capital, Founder Collective, OIF Ventures, Endeavor Scale-Up Ventures and January Energy also participated.

According to Pagaleve co-founder and CEO Henrique Weaver, the money will be used primarily on technology, to improve the user experience, in addition to increasing the current base of 500 retailers to 1,000 by the end of the year, when they also hope to reach serving a few hundred thousand consumers - while today there are tens of thousands.

"We are proud to be able to close an investment round like this, amidst a turbulent global economic backdrop. This only strengthens our commitment to democratize the access to installment payments for millions of Brazilians," said Henrique.
Buy now, pay later

Founded a little over a year ago, Pagaleve works in the B2B2C model, with a focus on e-commerce. The fintech bets on four installments, with no card or interest, and no minimum amount for installment through Pix. The user only pays if he or she is late. In this case, a fee of R$ 20 is charged per late installment, regardless of the value.

On the one hand, for the final consumer, Pix is a simpler payment alternative for retail purchases. The main advantages for retailers are to improve the cash flow, increase sales and attract new customers. Reserva, Lupo, Multilaser and Ri Happy are some of the 500 retail partners.

Pagaleve proposes to serve three publics poorly served by the market: people who do not have a credit card; people who have a card, but have problems dealing with the limit; and those who do not like to use a card, especially young people from generation Z, for fear of losing control of their spending and because of high interest rates.

Also according to the CEO, the approval is done in just 5 seconds, transaction by transaction, based on machine learning algorithms.

"Pagaleve has built a risk engine unlike anything that has existed in Brazil, combining cutting edge technology, machine learning algorithms, and a deep knowledge of the local market. The result of this is a high approval rate, speed of information processing, while we have defaults within our risk appetite," concludes Henrique.
Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Series A funds Entrée Capital, Founder Collective, OIF Ventures, Endeavor Scale-Up Ventures and January Energy also participated.

According to Pagaleve co-founder and CEO Henrique Weaver, the money will be used primarily on technology, to improve the user experience, in addition to increasing the current base of 500 retailers to 1,000 by the end of the year, when they also hope to reach serving a few hundred thousand consumers - while today there are tens of thousands.

"We are proud to be able to close an investment round like this, amidst a turbulent global economic backdrop. This only strengthens our commitment to democratize the access to installment payments for millions of Brazilians," said Henrique.
Buy now, pay later

Founded a little over a year ago, Pagaleve works in the B2B2C model, with a focus on e-commerce. The fintech bets on four installments, with no card or interest, and no minimum amount for installment through Pix. The user only pays if he or she is late. In this case, a fee of R$ 20 is charged per late installment, regardless of the value.

On the one hand, for the final consumer, Pix is a simpler payment alternative for retail purchases. The main advantages for retailers are to improve the cash flow, increase sales and attract new customers. Reserva, Lupo, Multilaser and Ri Happy are some of the 500 retail partners.

Pagaleve proposes to serve three publics poorly served by the market: people who do not have a credit card; people who have a card, but have problems dealing with the limit; and those who do not like to use a card, especially young people from generation Z, for fear of losing control of their spending and because of high interest rates.

Also according to the CEO, the approval is done in just 5 seconds, transaction by transaction, based on machine learning algorithms.

"Pagaleve has built a risk engine unlike anything that has existed in Brazil, combining cutting edge technology, machine learning algorithms, and a deep knowledge of the local market. The result of this is a high approval rate, speed of information processing, while we have defaults within our risk appetite," concludes Henrique.
Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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