Brazil’s Hash Raises $40M for White-Label Payments Software

Hash Secures $40 Million in Series C Funding

Hash, a fintech company specializing in payment infrastructure, has announced the successful completion of a $40 million Series C funding round. This investment was co-led by prominent venture capital firms QED Investors and Kaszek.

Recent Funding and Growth

This latest funding round follows a $15 million Series B raise secured just six months prior, which was also spearheaded by QED Investors, based in Alexandria, Virginia. To date, the Brazilian startup has amassed nearly $59 million in funding since its establishment in 2017.

Endeavor Scale-Up Ventures also participated in this funding round, demonstrating strong investor confidence.

Hash's Payment Infrastructure Offering

Hash provides comprehensive, “end-to-end” payment infrastructure designed for non-financial businesses operating in the B2B sector. These companies can leverage Hash’s platform to integrate banking services into their offerings.

The company’s solutions encompass a wide range of tools, including point-of-sale (POS) software, mobile applications, and comprehensive dashboards for managing payments.

White-Label Software and B2B Focus

Hash’s core offering is its white-label software, which enables the creation of customized payment services. The focus is on B2B companies that manage extensive customer networks and partnerships.

Significant Transaction and Client Growth

According to João Miranda, founder and CEO of Hash, the company has experienced a remarkable “6x” increase in transaction volume since its last funding round. Simultaneously, its client base has doubled to reach 16 businesses.

Over the past year, Hash has observed a tenfold growth in POS transactions, and projections indicate that total payment volume will exceed $275 million by the end of the current year.

Mission and Target Market

Hash’s stated mission is to “decentralize” financial services, with a particular emphasis on supporting small and medium-sized enterprises (SMEs).

“We empower B2B companies to seamlessly integrate payment solutions into their existing ecosystems,” explained Miranda. “This allows them to deliver enhanced and more competitive solutions to the SMBs within their reach.”

Current Customer Base and SME Reach

Currently, Hash’s 16 direct customers utilize its infrastructure to provide financial services to their own customer base, which comprises over 16,000 SMEs.

Expanding Revenue Streams

Hash aims to deliver a “complete” payment services infrastructure, ultimately assisting businesses in generating new revenue streams.

“We recognize that each industry and ecosystem possesses unique requirements,” Miranda stated in an interview with TechCrunch. “Our proprietary technology is designed to adapt to diverse market verticals.”

Future Expansion Plans

The newly acquired capital will be strategically allocated to facilitate further growth within existing markets, both geographically and by expanding into new segments. Currently, Hash operates exclusively within Brazil.

The company’s objective is to extend its reach across the “entire national territory,” recognizing its substantial size and significant growth potential, as noted by Miranda.

Diversification of Financial Services

Looking ahead, Hash intends to integrate additional financial services onto its payments platform, including credit, loan infrastructure, and card issuance capabilities.

Like many funded startups, Hash is also prioritizing talent acquisition. The company has already increased its headcount to nearly 170 employees, compared to 74 a year ago, and aims to reach 190 employees by the end of the year.

Investor Perspectives

Santiago Fossatti, a partner at Kaszek, expressed his belief that Hash is “capable of resolving numerous challenges” within the industry while simultaneously “delivering tangible value” to its customers.

He added that Hash is poised to become a key player in the payments industry and a leading reference point in Latin America.

Mike Packer, a partner at QED Investors, highlighted the “massive” market opportunity and emphasized Hash’s unique strength: “its ability to combine cutting-edge technology with a distinctive understanding of how to integrate payments into its partners’ business models.”