Brazil's Monkey Raises $6M Series A for Financial Marketplace

Monkey Secures $6 Million Series A Funding to Expand Receivables Marketplace

Monkey, a financial marketplace specializing in receivables within Latin America, has successfully completed a $6 million Series A funding round.

Investment Details

The funding round was jointly led by Quona Capital and Kinea Ventures.

Company Origins and Leadership

Established in 2016 and based in São Paulo, Monkey was founded by a team of three individuals.

This founding group includes Gustavo Müller, a former investment banker at Citi; Bruno Oliveira, who previously held a strategic planning role at Telefonica; and Felipe Adorno, an experienced senior developer formerly with Netshoes and Infracommerce.

Supply Chain Finance Solutions for SMEs

Monkey has created Supply Chain Finance (SCF) programs specifically designed for small and medium-sized enterprises (SMEs).

These programs connect SMEs with major corporations, such as Petrobras and Fiat Chrysler, alongside various banking institutions.

The company asserts that its network enables buyers to identify optimal receivables, suppliers to secure favorable sales terms, and sponsors to bolster their businesses and supply chains.

Addressing Financial System Concentration

Monkey was built on the understanding that Brazil’s financial landscape is dominated by a limited number of institutions, resulting in a lack of competitive pressure – a frequently voiced concern throughout Latin America.

According to CEO Müller, the existing system presents challenges like elevated interest rates and substantial spreads, making it difficult for SMEs to access capital at reasonable costs.

Creating a Competitive Marketplace

Monkey aims to alleviate these frustrations by establishing a competitive environment.

This involves bringing multiple financial institutions onto its platform to compete for the acquisition of receivables from SMEs with highly-rated buyers.

Significant Growth in Trading Volume

Currently, Monkey’s platform hosts 55 large companies, with a substantial number joining in 2020.

This influx of companies led to a significant increase in trading volume, surging from approximately $187 million to $1.5 billion throughout the year.

Quona Capital’s Perspective

Jonathan Whittle, partner and co-founder of Quona Capital, highlighted his firm’s investment focus on fintech startups promoting financial inclusion in emerging markets.

He expressed his firm’s admiration for Monkey’s innovative approach.

Whittle explained that Monkey’s combination of buyer-approved marketplaces and auction-based pricing, facilitated by a multi-funder platform, provides SMEs in Brazil with unprecedented access to credit at more affordable rates.

Expanding Access to Supply Chain Finance

Whittle emphasized that Monkey is broadening access to Supply Chain Finance, extending it to all suppliers of larger enterprises, not just those traditionally eligible.

Future Plans and Capital Allocation

The newly acquired capital will be used to double Monkey’s current team of 40 employees in 2021.

The company also intends to expand its operations beyond Brazil, extending its services to other Latin American countries.

Furthermore, funds will be allocated to enhance user experience and introduce new products, including a credit card marketplace.

Disrupting Traditional SCF Models

Whittle believes Monkey’s approach represents a fundamental shift in how Supply Chain Finance operates globally.

Traditionally, SCF has involved relationships between a single bank and a buyer; Monkey is redefining this model with a compelling value proposition for all marketplace participants.

Quona Capital’s Investment Portfolio

Quona Capital’s other investments in the region include Creditas, BizCapital, Neon, Contabilizei, Kovi, Konfio, Klar and ADDI.

Kinea Ventures’ Background

Kinea Ventures is a venture capital fund specializing in investments within the financial services and technology sectors.

The fund is part of Kinea Investimentos, a leading alternative investment manager in Brazil, established in 2007 through a partnership with Itaú Unibanco, and currently manages US$13 billion in assets.

Previous Funding Rounds

Prior to this Series A round, Monkey had raised approximately $1.5 million through two seed funding rounds.

Investors in these earlier rounds included Wayra Brazil – the CVC of Telefonica Group – and Parallax Ventures.