iugu, a financial services platform specializing in cash management and payment automation, has announced a significant investment of USD $14 million in a new senior quota series in its FIDC (Investment Fund in Credit Rights), with Bradesco BBI leading the transaction. Additionally, iugu is exploring new investments and growth strategies.
iugu aims to use these funds to advance payments of credit card receivables. With over R $180 million in assets, FIDC iugu is well-positioned to support its clients’ financial needs. Bradesco BBI SA advised the transaction as the main structure, BEM DTVM as the administrator, Banco Bradesco SA as the custodian of the FIDC, H2 Kapital SA in the structuring and administration of the FIDC, and Trench Rossi as legal advisor.
Since its foundation in 2012, iugu has seen significant growth in its operations and projects, an 80% increase in 2023 compared to 2022, establishing itself as a cash management and payment automation solutions leader.
André Luiz Gonçalves, iugu’s CFO, highlights the importance of the FIDC capitalization as a strategic step in diversifying the company’s capital sources. This capitalization ensures its clients access essential working capital for the continuity of their businesses.
This is not the first time iugu has sought financing through an FIDC. Last year, the fintech raised R $1 million in the first series of the iugu FIDC with the support of Bradesco BBI, allowing it to diversify its products and services. The first series exceeded the R $1000 million mark in transaction volume.
iugu has also had previous successes in attracting investments, including an R $120 million investment from the Goldman Sachs Group in 2020 and obtaining a license from the Central Bank of Brazil to operate as a regulated Payment Institution.
With the implementation of this second series of the FIDC, iugu aims to maintain steady growth for its clients and offer them a competitive and predictable source of financing, as concluded by the company executive. This strategic move underscores iugu’s commitment to financial innovation and its position as a critical player in the fintech sector in Brazil and the global economic landscape.
Brazil is clearly the Latin American country where most fintechs have thrived and continue to operate today. In total, the Brazilian fintech ecosystem consists of 771 companies, representing over 30% of the regional total. Mexico, with 512 fintechs, is the second-largest market, followed by Colombia and Argentina, which are close to reaching 300, according to the latest study published by the Inter-American Development Bank (IDB) and Finnovista.