Contxto – Fintech Weel raised an investment and let the world know last Thursday. The startup from Brazil announced it’s closed a round for R$80 million (about US$18.5 million) through BVx, the innovation arm of Brazilian bank, BV. Plus, this banking institution will also finance Weel for up to R$800 million (US$185 million).
It’s not the first time BV invests in the startup. In January of last year, it procured US$6 million in equity alongside monashees and Mindset Ventures.
The startup will use its most recent investment to expand operations and achieve nation-wide presence throughout all the states of Brazil. For the moment, its platform for financing a company’s receivables is available in 21 states (so basically it will be adding five more).
The fintech is also considering reaching new parts of Latin America “soon”. Specifically, Mexico and Chile.
Fintech finances accounts receivables
Brazilians Simcha Neumark and Shmuel Kalmus, alongside Russel Weiss founded Weel in 2015. Located in São Paulo, the fintech provides working capital to cover receivables for small and medium-sized enterprises (SMEs).
To be viable for coverage by Weel, a business must have an average yearly turnover of around R$10 million (US$2.3 million).
When it comes to tech, the Brazilian startup relies on artificial intelligence (AI) to conduct a risk analysis of an applicant.
The purpose is to allow more breathing room for SMEs so they can continue operating.
Meanwhile, the fee Weel charges a customer for its services depends on the cost of the operation after analyzing their case. However, the startup assures on its website that their rates are competitive in relation to the market.
SME solutions on the rise
Between 2017 and 2019, the fintech has raised US$45 million in investments, including a hefty US$30 million equity raising with Franklin Templeton in April of last year. So with its latest investment wrap up, it’s now valued at around US$63 million.
Weel‘s growth may suggest that investors still see vast potential in the fintechs that provide financial services for SMEs that are still not covered by traditional banking.
So let the funding flow.