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Brazil’s BizCapital raises $12 million for its online SMEs lending service

June 22, 2020
Por
Jonathan Shieber
Jonathan Shieber
Jonathan is an editor at TechCrunch.
📷
BizCapital
The Series B financing round will allow the Brazilian fintech to continue developing new products to support small and medium entrepreneurs.
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BizCapital, a Brazilian SME online lender has just raised a Series B financing round of $12 million led by the German development finance institution DEG, a subsidiary of  KfW Group, Germany's promotional bank. The round reinforces investors' confidence in BizCapital's ability to innovate in the Latin American credit market amid challenging circumstances caused by Covid-19. MELI Fund, the Corporate Venture Capital Fund of MercadoLivre joined the round.

This new investment is its largest ever. The company raised a Seed Round in January 2018 from Monashees, one of the leading VC firms in Latin America, Chromo Invest and 42K Investments. In September 2018, it raised a Series A of $5 million led by Quona Capital, a Washington-based VC firm focused on fintechs. Current investors have also joined the Series B round.

The capital raised will be directed at accelerating the development of new product offerings to Brazilian SMEs, as well as to continue developing new distribution channels. "What we aim to achieve with these new resources is to continue helping entrepreneurs during the entire lifecycle of their companies. With the economic crisis caused by the Covid-19 pandemic, BizCapital continues to support companies with an increasingly active role," Francisco Ferreira, CEO and Co-Founder at BizCapital says.

The fintech has already served more than 5,000 customers in more than 1,200 Brazilian cities. Since its inception, BizCapital has grown at a rapid pace, with its mission to reduce red tape in the Brazilian SME lending market, offering entrepreneurs a fast and reliable way to access financing for working capital and growth. "BizCapital's tech-driven business model as an online lender enables an innovative, efficient and effective way of providing financing to SMEs that are the backbone of the Brazilian economy," says Felix Schneider, DEG Vice President FinTechs Global Markets.

About BizCapital

BizCapital provides online working capital loans to SMEs, through a fast and reliable process. The company, founded in 2016 by three seasoned entrepreneurs with one successful exit, makes it its mission to help Brazilian entrepreneurs get access to the capital that they need to grow their businesses.

About DEG

For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in emerging markets. With its portfolio of around EUR 9 billion in approximately 80 countries, it is one of the world's largest private-sector development financiers. Learn more: www.deginvest.de.

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.

BizCapital, a Brazilian SME online lender has just raised a Series B financing round of $12 million led by the German development finance institution DEG, a subsidiary of  KfW Group, Germany's promotional bank. The round reinforces investors' confidence in BizCapital's ability to innovate in the Latin American credit market amid challenging circumstances caused by Covid-19. MELI Fund, the Corporate Venture Capital Fund of MercadoLivre joined the round.

This new investment is its largest ever. The company raised a Seed Round in January 2018 from Monashees, one of the leading VC firms in Latin America, Chromo Invest and 42K Investments. In September 2018, it raised a Series A of $5 million led by Quona Capital, a Washington-based VC firm focused on fintechs. Current investors have also joined the Series B round.

The capital raised will be directed at accelerating the development of new product offerings to Brazilian SMEs, as well as to continue developing new distribution channels. "What we aim to achieve with these new resources is to continue helping entrepreneurs during the entire lifecycle of their companies. With the economic crisis caused by the Covid-19 pandemic, BizCapital continues to support companies with an increasingly active role," Francisco Ferreira, CEO and Co-Founder at BizCapital says.

The fintech has already served more than 5,000 customers in more than 1,200 Brazilian cities. Since its inception, BizCapital has grown at a rapid pace, with its mission to reduce red tape in the Brazilian SME lending market, offering entrepreneurs a fast and reliable way to access financing for working capital and growth. "BizCapital's tech-driven business model as an online lender enables an innovative, efficient and effective way of providing financing to SMEs that are the backbone of the Brazilian economy," says Felix Schneider, DEG Vice President FinTechs Global Markets.

About BizCapital

BizCapital provides online working capital loans to SMEs, through a fast and reliable process. The company, founded in 2016 by three seasoned entrepreneurs with one successful exit, makes it its mission to help Brazilian entrepreneurs get access to the capital that they need to grow their businesses.

About DEG

For almost 60 years DEG has been a reliable partner to private-sector enterprises operating in emerging markets. With its portfolio of around EUR 9 billion in approximately 80 countries, it is one of the world's largest private-sector development financiers. Learn more: www.deginvest.de.

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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