The news: Brazilian lender Creditas has raised funding and is buying a bank as it aims to increase profitability, per PYMNTS.
More on the deal: The online consumer loan platform raised $200 million and is set to purchase a Brazilian banking license from Andbank, a Brazilian bank with roughly $30 billion in assets under management.
- Creditas will begin accepting deposits immediately, stating that retail deposits will help improve the platform’s margin.
- The deal is worth $100 million, but it is still awaiting approval from the Brazilian central bank and CADe, Brazil’s antitrust regulator.
- The lender also purchased mortgage marketplace Kzas, which will allow it to offer even more loans from various lenders.
More about Creditas: The 10-year-old Brazilian fintech has continued to take on the country by storm. In January, it raised $260 million, part of which came from major investor Fidelity, and was valued at $4.8 billion.
- The fintech specializes in auto loans, insurance, and used cars.
- Unlike most fintech companies, it provides transparency into its financials. Creditas doesn’t hold loans on its balance sheet, but rather securitizes them and sells them.
- It prides itself on offering cheap finance—something that is rare in Brazil.
Super app status? Creditas has been strategically using its revenue—which increased 233% to $48.6 million from Q3 2020 to Q3 2021—to build out its platform.
- In 2021, the fintech acquired four companies, including credit and financing provider Bcredi, and auto insurance firm Minuto Seguros.
- Creditas also operates Creditas Auto, a car marketplace; Creditas Store, an ecommerce platform with a payroll-deductible buy now, pay later (BPNL) model; and Voltz Motor, which offers electric motorcycles.
- The new funding will be used to develop all of Creditas’ technology in-house to run its operations.
Creditas has said it desires to be “a one-stop solution for those seeking a digital-first experience in everything related to their house, car, motorcycles, and salary-based benefits.” Its continued acquisitions and new ventures beg the question of whether it’s striving to become a super app.