Brazilian Fintech Koin Expands Services and Aims to Double Credit Volume in 2024

Diversification Strategy Leads to Positive EBITDA, BNPL Operation Shows Promise
Brazilian Fintech Koin Expands Services And Aims To Double Credit Volume In 2024
Brazilian Fintech Koin Expands Services And Aims To Double Credit Volume In 2024

As reported by Danylo Martins at Finsiders, Koin, a Brazilian fintech known for its buy now, pay later (BNPL) and digital installment plans, has broadened its product portfolio since being acquired by the Argentine group Despegar (operating as Decolar in Brazil) in August 2020. The company has introduced solutions such as Pix installments, payment gateway, anti-fraud, and its own marketplace, Akin Shop. This diversification, along with improved credit models and partner base review, resulted in the company achieving positive EBITDA in the last quarter of 2023.

Lucas Iván González, Koin’s Chief Product Officer (CPO), stated that the goal for 2024 is to generate positive EBITDA for the entire year. The BNPL operation, previously at a deficit, began to show profits in 2023, with a contribution margin of approximately 8%. Koin aims to double its loan volume this year and is investing significantly in its application and commercial area. The company sees a favorable scenario for credit due to the reduction of the basic interest rate in Brazil.

Koin’s BNPL has an approval rate of 75% and processes around 400 transactions per day, with an average ticket of R$2,500. The company aims to increase this recurrence rate and has launched an app to achieve this. Koin also tailors its payment terms based on industry segments such as tourism, education, apparel, beauty, and cosmetics. The company carefully analyzes each transaction to ensure a healthy relationship with its customers.

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