ImpactAlpha, February 16 – Neon launched in 2016 to provide credit and other digital financial services to Brazil’s low and middle income individuals, self-employed people and small businesses. Nearly 90% of Neon’s 15 million account holders are low and middle-income.
Spanish bank BBVA is investing $300 million in Neon for an opportunity to reach Brazil’s financially underserved population. The deal brings BBVA’s stake in the neobank to 29.7%. BBVA previously invested in Neon’s Series A round via its venture arm, Propel, alongside impact-minded investors Quona Capital and Monashees.
Latin American fintech ventures took in nearly 40% of the region’s $15 billion in venture capital investment last year.