Contxto – For startups, getting a government’s good blessings to operate isn’t necessarily easy. But once they get the green light, bigger projects are ahead as is the case with one Brazilian fintech.
Cora, a startup tendering to small businesses, recently announced it’s been approved to operate as a financial institution by the Central Bank of Brazil. This entails that it’s been granted a special license to operate and consequently, offer more products.
This fintech had raised US$10 million in late 2019 and now that it has the Bank’s stamp of approval, it can roll up its sleeves and get down to business.
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Cora’s ready to kill it
Telling customers that the Central Bank of Brazil has validated your business is a big way of gaining their trust. But this seal of approval also means it can roll out more goodies for small and medium-sized enterprises (SMEs).
“Besides enabling [our customers] to pay their bills and taxes, [offering] unlimited slips, and transfers at no cost, it will now be possible to receive funds from other financial institutions directly into the Cora account,” says Igor Senra, CEO and co-Founder.
Likewise, the fintech wants to launch a debit and credit card for SMEs.
“We see a market that is still very unexplored in credit for small and medium-sized companies,” notes Senra. Despite the Brazilian government’s efforts to offer financial packages for small businesses, for Cora, it’s clear that it won’t be enough.
At the moment, it has 5,000 registered SMEs on its platform. However, the fintech hopes to double that number by the end of the year. Certainly offering companies a credit card during these cash-strapped times will help Cora‘s chances of reaching (or even surpassing) its goal.
It’s clear the fintech wants to be a one-stop-shop for SMEs to manage their business. Now thanks to the Central Bank, it now has the license to do so.
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-ML
