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WealtTech XP Asset buys participation in financial services company One7 in Brazil

January 30, 2023
Por
Valor Econômico
Valor Econômico
A mais completa e admirada cobertura de economia, negócios e finanças. Notícias que geram negócios.
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Mattos, da XP Asset, e Fiuza, da One7
Main activity is in the market of credit to smaller companies
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XP Asset bought a minority stake in the financial services company One7. The deal was closed through an investment of R$ 110 million. One7 operates in the credit market for legal entities and serves mainly small and medium-sized companies.

The acquisition is part of XP Asset's diversification strategy, according to Filipe Mattos, responsible for managing "special situations" funds, and should enable the access to a complementary client portfolio. According to Mattos, the possibility of growth with the acquisition is great, considering the current scenario of high interest rates and increased demand for credit.

"The credit market for micro, small and medium-sized companies still lacks a more elaborate offer of financial services, and we have identified an opportunity to consolidate this segment," Mattos told Valor.

The funds from the investment will be used for investments in infrastructure, expansion of the distribution network and possible acquisitions, according to João Paulo Fiuza, CEO and one of the founders of One7.

The company was created in 2018 in Tatuí, in the interior of São Paulo, by Fiuza and Everaldo Moreira, currently chairman of the board. Both had worked in the credit area for almost two decades.

The company's relationship with XP Asset began in 2019, when the manager became a senior shareholder of one of One7's receivables investment funds (FIDCs). "In these four years, we got to know the company a lot and understood that it is, perhaps, the 'player' with the broadest and most strategic vision for granting credit to small and medium-sized companies," says Mattos.

Until 2020, One7 worked with securitization and anticipation of short-term receivables for companies through FDICs. Most customers had monthly sales of R$500,000 to R$10 million.

With the onset of the covid-19 pandemic in the mid-2020s, the demand for credit for small and medium-sized companies increased, and One7 began investing in technology to expand revenue sources. Also in 2020, the company bought control of fintech Rapidoo, which dealt with receivables from even smaller companies with revenues of up to R$500,000 per month.

"At that time, we saw that we could have a financial services platform, with funds and securitization instruments representing only a part of our products," says Fiuza. Currently, One7 also offers services such as the issuing of boletos and a financial management software aimed at micro and small companies.

For the next two years, Fiuza's plan is to triple revenue. "We want to grow in what we do well and, in parallel, create new products for customers we already know how to access," he says. "Since 2020, we have had more than eight thousand assignor clients and more than 400 thousand drawees who access our base and to whom we can take our products," says the executive.

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.

XP Asset bought a minority stake in the financial services company One7. The deal was closed through an investment of R$ 110 million. One7 operates in the credit market for legal entities and serves mainly small and medium-sized companies.

The acquisition is part of XP Asset's diversification strategy, according to Filipe Mattos, responsible for managing "special situations" funds, and should enable the access to a complementary client portfolio. According to Mattos, the possibility of growth with the acquisition is great, considering the current scenario of high interest rates and increased demand for credit.

"The credit market for micro, small and medium-sized companies still lacks a more elaborate offer of financial services, and we have identified an opportunity to consolidate this segment," Mattos told Valor.

The funds from the investment will be used for investments in infrastructure, expansion of the distribution network and possible acquisitions, according to João Paulo Fiuza, CEO and one of the founders of One7.

The company was created in 2018 in Tatuí, in the interior of São Paulo, by Fiuza and Everaldo Moreira, currently chairman of the board. Both had worked in the credit area for almost two decades.

The company's relationship with XP Asset began in 2019, when the manager became a senior shareholder of one of One7's receivables investment funds (FIDCs). "In these four years, we got to know the company a lot and understood that it is, perhaps, the 'player' with the broadest and most strategic vision for granting credit to small and medium-sized companies," says Mattos.

Until 2020, One7 worked with securitization and anticipation of short-term receivables for companies through FDICs. Most customers had monthly sales of R$500,000 to R$10 million.

With the onset of the covid-19 pandemic in the mid-2020s, the demand for credit for small and medium-sized companies increased, and One7 began investing in technology to expand revenue sources. Also in 2020, the company bought control of fintech Rapidoo, which dealt with receivables from even smaller companies with revenues of up to R$500,000 per month.

"At that time, we saw that we could have a financial services platform, with funds and securitization instruments representing only a part of our products," says Fiuza. Currently, One7 also offers services such as the issuing of boletos and a financial management software aimed at micro and small companies.

For the next two years, Fiuza's plan is to triple revenue. "We want to grow in what we do well and, in parallel, create new products for customers we already know how to access," he says. "Since 2020, we have had more than eight thousand assignor clients and more than 400 thousand drawees who access our base and to whom we can take our products," says the executive.

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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