Brazilian fintech Neon raises US$80 million for credit card fund

The funding will enable Neon to continue expanding its portfolio of credit products in a “sustainable and balanced way”, as the fintech works to improve “the lives of working Brazilians”

Brazil-based fintech and digital bank Neon has raised US$80 million in its first credit rights investment fund (FIDC) focused on credit cards.

The funding will enable Neon to continue expanding its portfolio of credit products in a “sustainable and balanced way”, as the fintech works to improve “the lives of working Brazilians”.

Neon, founded in 2016, aims to simplify financial services for consumers and reduce inequalities. It claims to currently have more than 15 million customers and ended 2021 with a total credit portfolio of US$ 270 billion.

Its fund focused on credit cards now holds US$170 million in equity and will be managed by asset management firm Empírica.

This is Neon’s second fundraising in the private credit market this year, following the more than US$ 40 million raised for its private payroll deductible FIDC at the beginning of 2022.

Jamil Marques, chief financial officer at Neon, commented: “The funding endorses the strength and positive history that we have been building in the management of the credit portfolio over the last few years.”

“Today our credit engine is mature and the FIDC resources will give us the strength to continue expanding our portfolio in a sustainable and balanced way in the medium-long term. The focus continues to be on the Brazilian worker, and always with the mission to reduce inequalities by building paths to credit.”

Neon recently launched the elastic limit, which makes it possible to expand credit for one-off purchases, based on credit assessment.

The fintech already offers personal loans, payroll loans and credit cards without annuity with special conditions. Neon plans to launch new solutions that will help its customers to consciously access credit throughout the rest of the year.

Image: Neon

Mark Dugdale