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Brazilian Fintech Conta Simples brings the founder of Tinder, Valor and Base10 in series A of US$21 million

December 16, 2021
Por
Gustavo Brigatto
Gustavo Brigatto
Fundador e Editor-Chefe do Startups
📷
LABS
Six months after extending its seed round, totaling R$28 million raised, Fintech Conta Simples closed a new, much larger fundraiser: R$121.4 million.
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The round was led by the JAM fund, owned by Tinder founder Justin Mateen, and Valor Capital. Base10 Partners also joined. Y Combinator, Quartz and Big Bets, who were already investors, also participated. Fintech still has SaaSholic as an investor.

The contribution comes less than two weeks after the Mexican Clara became a unicorn and 4 months after Cora, owned by Igor Senra, raised R$ 600 million. The Simple Account stands midway between the two. Born as a digital account for small businesses, it migrated to a management system proposal for companies. It is this proposal that the company wants to boost with the new injection of resources.

According to Rodrigo Tognini, co-founder and president of fintech, the idea is to double the team over the next 12 months, reaching 300 people. In terms of traded volume, the expectation is to reach R$ 12 billion, triple the current level. In number of accounts, the plan is also to triple, reaching 120 thousand. Throughout 2021 fintech's revenue was multiplied by 4.

Conta Simples has specialized in serving digital entrepreneurs and new economy companies. In the portfolio are names such as Swile, Justos, Favo, IdWall, Mottu and this Startups (which also received a minority investment from Conta Simples).

According to Rodrigo, in addition to hiring, the round will help the company carry out the first tests of credit products. The idea, according to him, is that, in the medium term, Conta Simples include services such as credit card in its offers (today it has the model that is linked to the current account balance), prepayment of receivables, financing for suppliers, credit for boosting of digital marketing campaigns and even venture debt.

Operating on the surrogacy model with the BV bank, Conta Simples recently filed a request with the Central Bank to become a Direct Credit Society (SCD). The expectation is that the license will be released within a period of 8 months to 1 year.

Entering the credit world will mean a significant change in fintech's business model. Unlike other digital banks, Conta Simples had chosen the path of offering an account that charges fees for transactions carried out. This, however, is changing.

Yesterday, for example, she announced the R$1.99 fee exemption for transfers made using Pix. According to Rodrigo, the trend is for this fee collection to drop to zero and the granting of credit will be the company's next line of revenue – along with the interchange fee received from the Visa brand when customers use fintech's card.

Acquisitions in sight

According to Rodrigo, a smaller part of the round will also be earmarked for possible acquisitions. How this will be done and the profile of the businesses that may be incorporated is not yet very clear, but the idea is that the businesses are more in line with the acqui-hire, bringing additional talents to the business structure, rather than expanding its portfolio and your acting. “We want to keep an eye out for opportunities,” he says.

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.

The round was led by the JAM fund, owned by Tinder founder Justin Mateen, and Valor Capital. Base10 Partners also joined. Y Combinator, Quartz and Big Bets, who were already investors, also participated. Fintech still has SaaSholic as an investor.

The contribution comes less than two weeks after the Mexican Clara became a unicorn and 4 months after Cora, owned by Igor Senra, raised R$ 600 million. The Simple Account stands midway between the two. Born as a digital account for small businesses, it migrated to a management system proposal for companies. It is this proposal that the company wants to boost with the new injection of resources.

According to Rodrigo Tognini, co-founder and president of fintech, the idea is to double the team over the next 12 months, reaching 300 people. In terms of traded volume, the expectation is to reach R$ 12 billion, triple the current level. In number of accounts, the plan is also to triple, reaching 120 thousand. Throughout 2021 fintech's revenue was multiplied by 4.

Conta Simples has specialized in serving digital entrepreneurs and new economy companies. In the portfolio are names such as Swile, Justos, Favo, IdWall, Mottu and this Startups (which also received a minority investment from Conta Simples).

According to Rodrigo, in addition to hiring, the round will help the company carry out the first tests of credit products. The idea, according to him, is that, in the medium term, Conta Simples include services such as credit card in its offers (today it has the model that is linked to the current account balance), prepayment of receivables, financing for suppliers, credit for boosting of digital marketing campaigns and even venture debt.

Operating on the surrogacy model with the BV bank, Conta Simples recently filed a request with the Central Bank to become a Direct Credit Society (SCD). The expectation is that the license will be released within a period of 8 months to 1 year.

Entering the credit world will mean a significant change in fintech's business model. Unlike other digital banks, Conta Simples had chosen the path of offering an account that charges fees for transactions carried out. This, however, is changing.

Yesterday, for example, she announced the R$1.99 fee exemption for transfers made using Pix. According to Rodrigo, the trend is for this fee collection to drop to zero and the granting of credit will be the company's next line of revenue – along with the interchange fee received from the Visa brand when customers use fintech's card.

Acquisitions in sight

According to Rodrigo, a smaller part of the round will also be earmarked for possible acquisitions. How this will be done and the profile of the businesses that may be incorporated is not yet very clear, but the idea is that the businesses are more in line with the acqui-hire, bringing additional talents to the business structure, rather than expanding its portfolio and your acting. “We want to keep an eye out for opportunities,” he says.

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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