Brazilian Fintech RecargaPay Raises $70 Million Series C Round
RecargaPay, Brazil’s largest payments and mobile money ecosystem, has raised $70 million to further enhance its all-inclusive payment platform, democratizing access to digital financial services for millions of new users. Currently EBITDA positive and with a revenue run rate of over USD$50 million, RecargaPay has raised over $100 million to date.
The Series C round, co-led by IDC Ventures and Fuel Venture Capital, included the participation of ATW, LUN Partners, and Experian. The $70 million capital injection will expand its financial services offerings to small businesses and consumers, including further development of its popular subscription program Prime+. RecargaPay has over 300 full-time employees in Miami, São Paulo and Buenos Aires. The capital injection will enable additional recruiting of top talent from around the world.
Founded in Brazil in 2010, RecargaPay set out to provide a comprehensive and user-friendly financial services ecosystem that would be accessible even to people who do not have bank accounts. The RecargaPay mobile app allows users to apply for and get micro-loans; replenish their cell phone payment plans, city bus and metro accounts; pay bills; send and receive money; buy gift cards, and more. Users can also add money to their RecargaPay wallet through cash deposits in stores, or by bank or card transfers.
Since its inception, RecargaPay’s digital wallet solutions have served Brazilians of all income levels, evidence that traditional payment systems have not comprehensively addressed broad consumer needs and wants. The COVID-19 pandemic has boosted demand for RecargaPay’s platform, with the microloan segment in Brazil growing more than 500% in 2020 alone.
“We’re proud to be helping so many people with their essential payments during a moment of crises and challenges, but we know the utility of our platform is long-term as even people with bank accounts continue to flock to RecargaPay for more seamless and convenient transactions,” said RecargaPay founder and CEO Rodrigo Teijeiro. “We look forward to further expanding our platform and bringing RecargaPay to a broader market with the support of our investors and our growing international team.”
“Access to loans, credit cards, and other forms of debt remains elusive for many in Brazil and other countries in Latin America, and the region’s digital payments infrastructure has historically been deeply fragmented – RecargaPay is a silver bullet that enables instant, cost effective payments rails and access to credit for all Brazilians,” said Bobby Aitkenhead, IDC Ventures Managing Partner and former PayPal executive. “I look forward to further scaling RecargaPay in 2021 to bring its robust ecosystem to many more people and small businesses.”
“RecargaPay is a pioneer in the payments sector as one of the first all-in-one platforms to serve such a wide array of everyday needs of Brazilians,” said Maggie Vo, Fuel Venture Capital Managing General Partner and Chief Investment Officer. “We are thrilled to back a company that is actively improving the lives of so many people by giving them more control over their finances, all the while challenging the status quo of banking systems.”
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Source: PR Newswire (link opens in a new window)
- financial inclusion, scale