Creditas lands $19m to cut Brazilian lending rates

Brazilian lender Creditas Soluções Financeiras has picked up $19m in a Series B round to cut its interest rates.

The investment comes from World Bank’s International Finance Corp, Naspers’ fintech arm and local VC Redpoint eventures.

Working with Silicon Valley firm Redpoint Ventures and Berlin-based fund, Redpoint previously participated in the Creditas $7.5m round in June.

The consumer lending company develops its own credit scoring systems to offer loans against borrowers’ assets.

Its loans are financed though investor capital and partnerships with traditional financial institutions.

Creditas says it will use the new financing will to reduce the minimum interest rate it charges on secured loans from 2.15% to 1.99%. The average consumer lending rate in Brazil is around 7%.

The capital will also go towards developing new distribution channels.

The funding follows the $80m raised by fellow Sao Paulo-based startup Nubank in December.

The digital financial services and credit card firm pulled in funding from DST Global, Founders Fund QED Investors, Sequoia Capital and Tiger Global Management.

Copyright © 2017 FINTECH GLOBAL