Vostok Emerging Finance (VEF) announces its USD 25 mln investment into leading Brazilian digital secured loan platform, Creditas. VEF led a broader Series C investment round of USD 50 mln and is joined by existing investors, including Kaszek Ventures, Quona Capital, QED Investors, International Finance Corporation (“IFC” from The World Bank) and Naspers. Post the transaction VEF holds a minority position and board representation in the company.
Creditas is a digital-first secured lending platform, with a mission of reducing the Brazilian consumer debt burden by offering consumer loans at more affordable rates by using borrower collateral like homes and autos. Brazilians are paying some of the highest interest rates globally in the unsecured lending space, while at the same time approximately 70% of home and car owners don’t have mortgage or auto financing. Creditas leverages these assets that represent US 3 trillion in the country to offer home equity and auto secured loans at more reasonable rates, as is the norm in markets like the US. Creditas was founded in 2012 by Sergio Furio and is based in Sao Paulo, Brazil.
Vostok Emerging Finance Managing Director Dave Nangle comments:
“We are excited to announce our latest portfolio investment and our fifth in Brazil, reflecting our firm belief that Brazil offers one of the most attractive fintech market opportunities globally. For us, Creditas represents a unique portfolio opportunity for VEF, as it is the most logical and impressive direct play into Brazils high opportunity secured consumer credit market. Furthermore, Creditas has one of the strongest management teams we have come across complemented by deep moats and a real scale growth opportunity. We look forward to supporting Sergio and the team on the journey ahead.”
Creditas founder, Sergio Furio comments:
“We’re delighted to partner with Vostok Emerging Finance to continue our mission of restructuring Brazilian household debt and drastically reducing the high interest rates that consumers are paying. After growing 7 times in the last 12 months, we are looking forward to continue investing in building a great company, improving our technology platform and expanding our product portfolio. In the loans funding side, institutional investors continue being our primary source of funding and this round will allow us for further experimentation in new products and segments.”