Creditas, a lending company based in Brazil, has secured $255 million in a new funding round, reflecting the continued strong investment activity in financial services startups throughout Latin America.

The total value of the company’s loan portfolio has surpassed 1 billion reals, which translates to approximately $196.66 million. This latest investment brings the company’s valuation to $1.75 billion, supported by a total of $570 million in funding raised across five investment rounds.

Creditas represents the newest example of the growing trend of investment in financial technology companies across the region. Data from CB Insights indicates that venture capital investments in Latin American fintech startups increased dramatically from $50 million in 2014 to over $2.1 billion in 2020, encompassing 139 separate deals.

This funding round included participation from new investors such as LGT Lightstone, Tarsadia Capital, Wellington Management, e.ventures, and an affiliate of Advent International, Sunley House Capital. Existing investors, including SoftBank Vision Fund 1, SoftBank Latin America DFund, VEF, Kaszek, and Amadeus Capital Partners, also contributed to this round.

Paulo Passoni, managing partner of SoftBank Latam fund, stated that “Creditas is still at an early stage in its efforts to capture a significant share of the large, underserved secured lending market in both Brazil and Mexico.”

The company’s success demonstrates the demand for innovative lending solutions in Latin America and highlights the foresight of investors like Kaszek Ventures, who have achieved substantial returns through investments in financial services startups in the region.

Nicolas Szekasy, managing partner of Kaszek Ventures, commented, “Since our initial investment in the Series A round, the company’s progress has been remarkable. The team has successfully implemented its vision, and Creditas has developed into a scalable ecosystem that addresses the evolving financial needs of its customers throughout their lives.”

Redpoint’s e.ventures fund is also experiencing positive results from this investment, having strategically focused on Latin American ventures for several years.

Mathias Schilling, co-founder and managing partner of e.ventures, explained, “Creditas empowers individuals in Brazil to manage their borrowing needs at affordable rates, creating a highly valued product for consumers and generating substantial returns for investors. We are excited to continue supporting the company’s growth, having been involved since the seed stage through Redpoint e.ventures, and now with our Global Growth Fund, as they reshape the Brazilian fintech sector.”

Creditas intends to utilize the new funding to broaden its offerings in home and auto lending, as well as expand its payday lending service, which is based on customers’ income, and introduce a retail financing option through buy now, pay later loans tied to salary.

The company is also exploring opportunities for expansion into new markets, with a particular focus on establishing a presence in Mexico.

Established in 2012, Creditas began operations in a small office space of five square meters on Berrini Avenue in São Paulo. Today, it has grown into a thriving business with a substantial workforce and a foundation built on a secured lending marketplace and independent home and auto lending services.

The company also recently published its quarterly financial results for the first time, revealing a reduction in losses from 74.9 million Brazilian reals to 40.5 million reals compared to the same quarter in the previous year.