Brazilian startups that offer financial services continue to lead the Latin American market. Now, it’s Neon’s turn. Neon is a neobank that, after raising a US$300 million Series D financing, reached a valuation of more than US$1 billion and became a unicorn.

The Spanish bank BBVA led the round, increasing its stake to 29.7%. The Spanish institution already had a stake in Neobank since 2018 through the venture capital fund Propel.

With this new capital injection, Neon has already raised around US$720.3 million in funding, details Crunchbase.

More Technology for Neon

The fintech, founded in 2016 by Pedro Conrade, announced that the financing will be used to invest in technological, marketing and product resources. These will be based on Democredit, which is its artificial intelligence platform through which it grants loans.

Its plan is to continue growing. The company said that during 2021 it tripled its annual revenue and expects to double its revenue by 2022, as it is handling more than R$5.8 billion (US$1.1 billion, approximately) monthly in transactions.

Neon already has 15 million registered accounts, providing access to financial services for individuals and small businesses in Brazil.

The Brazilian firm is backed by Monashees, Quona Capital, General Atlantic, Banco Votorantim, PayPal Ventures, Endeavor Catalyst and BBVA through Propel Ventures, which has been present since its Series A round. 

It is worth mentioning that Neon is part of more than 770 startups that offer fintech services in Brazil. These represent around 48% of the total in Latin America, detailed Finnovista’s Fintech Radar 2021.

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