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Paytech Transfeera raises US$1.3M and wants to compete with big Baa players in Brazil

January 12, 2023
Por
Finsiders
Finsiders
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Gazeta da Semana
The investment is far from being the size of a Series A, for which the startup has been preparing since 2021, but it is the necessary fuel for the company to boost its expansion.
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Transfeera will accelerate growth this year. For this, the fintech of management, payments and receipts for companies has just put R$ 7 million in the box, the result of a new round of investments that is being announced today (11).

The funding was calibrated according to the context. "We did some redesigning because the cost of money has changed, the market moment is another," acknowledges Fernando Nunes, CEO and cofounder of Transfeera, in an interview with Finsiders. The option for a smaller check is also related to the fintech's motto, which has always had "big dreams, but feet on the ground. This means that the injection of resources now comes out of opportunity, not necessity.

"We are at breakeven, we reached breakeven in the second half of last year and we have already generated cash. So, we are not talking about 'burn'," says Fernando. "The contribution comes to us to take advantage of the opportunity to grow, knowing the potential of connecting non-financial companies to the financial world, and to reaffirm the ties with our shareholders," says the entrepreneur, who recently became CEO.

The new funding was led by Honey Island by 4UM - a fund focused on fintechs created by Honey Island Capital and 4UM Investments - and had the participation of current investors Bossanova, Opus, Goodz Capital and Curitiba Angels. The check comes more than two years after the seed money of R$ 3 million. The company also went through the Startup SC programs, from Sebrae-SC, and Scale-Up, from Endeavor, as well as acceleration by Visa.

Founded in 2017, in Joinville (SC), Transfeera offers infrastructure and technology solutions for payment processing and bank data validation. In August 2020, it also put online a payment initiation API, which promises to reduce online payment steps by more than 50%.

Focus on technology and product

With the investment, Transfeera will increase its technology, engineering, and product teams in the short term - in the first quarter alone, there are ten open positions in these areas - and also plans to recruit in other areas, such as compliance, PLD, and customer experience. Hiring for strategic positions has already begun. At the end of the year, the fintech announced the arrival of Gabriel Falk (ex-Ebanx) as VP of product and Pâmella Hess (ex-Conta Azul) as head of people. Today, Transfeera has 52 employees.

In the medium and long term, the company also wants to improve the customer acquisition machine, increasing disbursements in marketing and sales, says Fernando. "We are totally focused on instant payment. We launched last year the 'ITP as a service', and we want to go deeper into this. I believe that the future is 'payment account to account'," says the CEO.

Today, the fintech operates as a payment institution (PI) that is not a member of the Brazilian Payment System (SPB), issuer of electronic money and acts as an indirect participant of the Instant Payment System (SPI) - the result of a connection with BTG, a direct participant in the system. The company still awaits approval from the Central Bank to operate as a regulated IP.

With more than 470 clients, including names such as iFood, Vakinha, Aiqfome, Hotmart, and Enjoei, Transfeera moved R$12.8 billion last year, which means 206% growth over 2021. In the first half of 2022, the company had revenues of R$ 7 million, an 89% increase over the same period of 2021 - the consolidated figures for 2022 have not yet been closed, but the expectation was to reach R$ 20 million.

Competitive market

The players that deliver banking solutions as a service (BaaS) are Transfeera's main competitors. "We are on our way to challenge the big players," says Fernando, who highlights as differentials the state-of-the-art technology and the team focused on efficiency. The size of the challenge, however, is equivalent to the dream conceived almost six years ago.

Opportunity is not lacking, with the growing interest of companies from different sectors in embedding financial products and services in their platforms. According to a study recently released by Deloitte, the so-called 'embedded finance' may generate additional revenue of about R$24 billion by 2026 for the retail, consumer goods and other services sectors.

Original Article in FINSIDERS

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.

Transfeera will accelerate growth this year. For this, the fintech of management, payments and receipts for companies has just put R$ 7 million in the box, the result of a new round of investments that is being announced today (11).

The funding was calibrated according to the context. "We did some redesigning because the cost of money has changed, the market moment is another," acknowledges Fernando Nunes, CEO and cofounder of Transfeera, in an interview with Finsiders. The option for a smaller check is also related to the fintech's motto, which has always had "big dreams, but feet on the ground. This means that the injection of resources now comes out of opportunity, not necessity.

"We are at breakeven, we reached breakeven in the second half of last year and we have already generated cash. So, we are not talking about 'burn'," says Fernando. "The contribution comes to us to take advantage of the opportunity to grow, knowing the potential of connecting non-financial companies to the financial world, and to reaffirm the ties with our shareholders," says the entrepreneur, who recently became CEO.

The new funding was led by Honey Island by 4UM - a fund focused on fintechs created by Honey Island Capital and 4UM Investments - and had the participation of current investors Bossanova, Opus, Goodz Capital and Curitiba Angels. The check comes more than two years after the seed money of R$ 3 million. The company also went through the Startup SC programs, from Sebrae-SC, and Scale-Up, from Endeavor, as well as acceleration by Visa.

Founded in 2017, in Joinville (SC), Transfeera offers infrastructure and technology solutions for payment processing and bank data validation. In August 2020, it also put online a payment initiation API, which promises to reduce online payment steps by more than 50%.

Focus on technology and product

With the investment, Transfeera will increase its technology, engineering, and product teams in the short term - in the first quarter alone, there are ten open positions in these areas - and also plans to recruit in other areas, such as compliance, PLD, and customer experience. Hiring for strategic positions has already begun. At the end of the year, the fintech announced the arrival of Gabriel Falk (ex-Ebanx) as VP of product and Pâmella Hess (ex-Conta Azul) as head of people. Today, Transfeera has 52 employees.

In the medium and long term, the company also wants to improve the customer acquisition machine, increasing disbursements in marketing and sales, says Fernando. "We are totally focused on instant payment. We launched last year the 'ITP as a service', and we want to go deeper into this. I believe that the future is 'payment account to account'," says the CEO.

Today, the fintech operates as a payment institution (PI) that is not a member of the Brazilian Payment System (SPB), issuer of electronic money and acts as an indirect participant of the Instant Payment System (SPI) - the result of a connection with BTG, a direct participant in the system. The company still awaits approval from the Central Bank to operate as a regulated IP.

With more than 470 clients, including names such as iFood, Vakinha, Aiqfome, Hotmart, and Enjoei, Transfeera moved R$12.8 billion last year, which means 206% growth over 2021. In the first half of 2022, the company had revenues of R$ 7 million, an 89% increase over the same period of 2021 - the consolidated figures for 2022 have not yet been closed, but the expectation was to reach R$ 20 million.

Competitive market

The players that deliver banking solutions as a service (BaaS) are Transfeera's main competitors. "We are on our way to challenge the big players," says Fernando, who highlights as differentials the state-of-the-art technology and the team focused on efficiency. The size of the challenge, however, is equivalent to the dream conceived almost six years ago.

Opportunity is not lacking, with the growing interest of companies from different sectors in embedding financial products and services in their platforms. According to a study recently released by Deloitte, the so-called 'embedded finance' may generate additional revenue of about R$24 billion by 2026 for the retail, consumer goods and other services sectors.

Original Article in FINSIDERS

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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