Neon, the first 100% digital account in Brazil and one of the world’s leading unicorn fintechs, announces an investment of R$ 1.6 billion (US$ 300 million) in its series D round done in full by BBVA, a global financial services group, with leading franchises in Spain, Latin America and Turkey, among other markets.
The resources will be invested in technology, marketing, products and capital to accelerate Neon’s goal towards being the best partner of the Brazilian worker. Neon has tripled its size in 2021 reaching 15 million customers, 88% of which belong to the C, D and E classes. For this year, the expectation is to more than double its revenue. In addition, the company handles more than R$ 5.8 billion per month in transactions.
The company’s strategy is to launch new products based on its “Democredit” platform, a proprietary intelligence for granting credit, considering the best product for each moment in the customers’ lives and showing the path to obtain it in a democratic way. This is a differential for 90 million people with some remunerated activity in Brazil who seek sustainable credit, which makes the company a natural choice as a main account.
“We will provide all our customers with simple and fair ways to obtain credit. This is our contribution to re-balancing financial inequalities and making a difference is people’s lives. Funding allows us to accelerate this purpose, and serve more and more workers. Neon has grown a lot and is increasingly solid, but one thing has never changed, our purpose, of improving the finances of Brazilian workers, is what moves us. With BBVA’s support and global experience in digitization and credit, we will make even greater advances.”, said Pedro Conrade, founder of Neon.
“Neon has proven to have an offering that is connected to Brazilians’ financial needs, as its customer acquisition figures demonstrate. In addition, it has the capacity to continue growing quickly, considering how it launches products with such agility in a market with as much potential as Brazil,” said BBVA Chairman Carlos Torres Vila.
With the new investment, Neon received more than R$ 3.7 billion in investments. The first was in the amount of R$ 72 million in series A, in May 2018, with Propel Venture Partners, Monashees, Quona Capital and Flourish Ventures. In November 2019, in series B, it raised R$ 400 million in a round led by General Atlantic and Banco Votorantim, a partner institution of Neon and Probel. In September 2020, in Series C, Neon received an investment of R$ 1.6 billion led by General Atlantic, which also had the participation of investors BlackRock, Vulcan Capital, PayPal Ventures and Endeavor Catalyst and Probel.
The company has also made strategic acquisitions in the market. In January of this year, Neon signed a contract for the acquisition of the Biorc finance company, still subject to Central Bank approval. This will be the fourth acquisition, which started in 2019 with MEI Fácil, a leader in financial services and education for individual micro-entrepreneurs, and was followed by the purchase of Magliano Invest, the first stock brokerage on Bovespa, in 2020, which is also subject to approval. of the Central Bank. In the same year, Neon strengthened its payroll loan portfolio with the purchase of ConsigaMais+, the main fintech in the sector.
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