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The financial solutions company announced a new round of financing for US$260 million in a Series F, after which it acquired a valuation of US$4,8 billion. In this way, Creditas is positioning itself as one of the most valuable companies in Latin America, as was the case with its compatriot Nubank.
Fidelity Management and Research Company (“Fidelity”) led the investment round. Creditas is also backed by Actyus and Greentrail Capital, QED Investors, VEF, SoftBank Vision Fund 1, SoftBank Latin America Fund, Kaszek Ventures, Lightock, Headline, Wellington Management and Advent International, through its subsidiary Sunley House Capital.
Prior to the new financing, in December 2020 Creditas raised a Series E for US$255 million. This led it to be valued at US$1.75 billion, thus entering the club of Latin American unicorns. Then, in February 2021, it managed to raise a debt for US$30 million. Thus, the fintech company has US$854 million in funding, according to Crunchbase data.
After its Series F, Creditas reached the top 5 of the most valuable startups in Latin America, according to LAVCA. They come after after Nubank (+US$30 billion), Kavak (US$8.7 billion) and Rappi (+US$5,2 billion). Below them is Tiendanube with a valuation of US$3.1 billion.
What’s Next: Doubling Revenues
Creditas’ new capital will be focused on accelerating its growth strategy in the three ecosystems it focuses on: home, auto, and employee benefits.
It will also invest in expanding its operations to “offer an increasingly comprehensive platform that includes fintech products, insurance and marketplace solutions,” the company said in a statement.
“We plan to continue to grow, provide financial solutions to our marketplace clients, launch new products, extend our geographic reach (including our recent successful entry into Mexico and the expansion of our technology hub in Valencia, Spain), and pursue strategic M&A opportunities,” said Sergio Furio, founder and CEO of Creditas.
Thus, the company seeks to close 2022 with double the revenues it obtained in 2021. It is already planning to make a public offering in the United States.
Creditas’ new valuation fulfills one of the perspectives that different investment funds have been expecting since last year. This is that fintech companies will continue to attract capital and will be among the most valuable in LatAm.
It is worth mentioning that 2021 stood out as an unprecedented year in terms of investment for startups worldwide. The Americas received US$14.8 billion in investments for these companies, an increase of 174% compared to 2020. In addition, 660 deals were closed, 121 more than the previous year, according to CBInsights.
You may also be interested in: The Complete List of Latin American Unicorns