ImpactAlpha, December 4 – São Paulo-based Creditoo partners with companies to underwrite and provide affordable credit to their employees. Global Founders Capital and return investor Canary, a Brazil-focused venture capital firm, have invested $1.2 million in the company’s latest funding round.
In a country where interest rates on mainstream credit options like credit cards can top 300%, Creditoo uses paycheck predictability to make personal loans more affordable. The company uses borrowers’ monthly income as a benchmark for how much they can borrow. Borrowers can get approved within 24-hours for credit at as little as 1.75% per month and repayment timelines of up to three years.
Creditoo was launched in 2016 and began lending this year. The company plans to lend about $52 million by the end of 2019, Brazilian business publication Baguete reports.
Other Brazilian companies expanding access to affordable consumer credit have successfully raised capital. In February, Creditas secured $50 million for its collateral-based consumer lending platform, and in October, São Paulo-based Nubank scored $180 million from Chinese Internet giant Tencent for its no-fee, low-interest digital credit cards. The deal valued Nubank at $4 billion.