The company’s current focus is on achieving financial equilibrium and self-sufficiency. Since its last investment round in January 2022, Creditas is also considering a new funding round to support its operations this year.
With an aim to hit a 35% annual growth rate in 2024, Creditas intends to double its size every two and a half years, reinvesting profits and growing through its own capital. However, the IPO depends on both market conditions and the company’s readiness. Despite nearing ideal conditions for an IPO, the market is still adjusting, especially with interest rate fluctuations in Brazil and the United States.
Creditas’ potential IPO is expected to be in the US rather than Brazil, reflecting its predominantly foreign investor base. Current market trends favor larger, more robust companies, with Creditas’ annual revenue around $400 million, close to the preferred size of $500-700 million. In the past two years, the company has focused on streamlining operations, including changes in its Creditas Auto model.
The company’s financial report for the third quarter of 2023 showed revenues of R$ 482 million, a 16% increase from the same period in 2022. The gross profit was R$ 170.9 million, marking a 219% increase from the previous year’s third quarter. With strong capitalization and financial stability, Creditas is well-positioned for future growth and a potential IPO, albeit with a cautious approach amidst changing market conditions.