Fidelity to Invest in Creditas

Creditas hits $4.8bn valuation after funding round SoftBank-backed group rides wave of investor interest in Latin American digital technology. Fidelity Management & Research LLC led Creditas’s latest investment, which also included participation from other new investors Spanish fintech fund Actyus and Greentrail Capital. Existing backers also put money in the Series F round, including QED Investors, VEF, SoftBank Vision Fund 1, SoftBank Latin America Fund, Kaszek Ventures, Lightock, Headline, Wellington Management and Advent International, via affiliate Sunley House Capital. Creditas is one of those rare and refreshing startups that gives us a glimpse into their financials. Such transparency is not common and has the benefit of preparing the company well for its eventual path to the public markets. In the third quarter of 2021, Creditas notched US$46.8 million in revenue – up 233% from $14 million in the 2020 third quarter. At the same time, as it has been investing in its growth, the company’s net loss widened to $14.8 million compared to $8.25 million. Founder and CEO Sergio Furio projects annualized revenue of about $200 million for 2021.

Creditas is working toward being “a one-stop solution for those seeking a digital-first experience in everything related to their house, car, motorcycles, and salary-based benefits. Eighteen months ago, Creditas expanded out of its home market of Brazil into Mexico. The company also has a tech hub in Spain, where about 20% of the company’s tech team is based. Presently, Credit has more than 4,200 employees, and plans to, naturally, continue to hire with its new capital. While its headcount doubled over the past year, Furio envisions a slower pace of hiring over the next 12 months. The company also plans to continue investing in acquisitions. In 2021, it acquired four companies. Part of the proceeds from the round will go toward “adding specialty products or niches” that it does not currently operate in.

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