Capim Secures $26.7M Series A Funding - Brazilian SaaS Startup

Capim Secures $26.7 Million Series A Funding

Capim, a fintech startup focused on providing Brazilian consumers with a buy now, pay later (BNPL) solution for dental care, has successfully closed a $26.7 million Series A funding round. This information was shared exclusively with TechCrunch.

Company Overview and Founding

Established in July 2021 by Marcelo Lutz and Roberto Biselli, who jointly serve as co-CEOs, Capim is headquartered in São Paulo. The company positions itself as a specialized vertical SaaS provider catering to the dental industry.

Capim’s core offering is an operating system designed to assist dentists in digitizing their practices, streamlining clinic management, and ultimately boosting revenue.

Software Functionality and BNPL Advantages

The company’s software facilitates digital appointment scheduling for patients at affiliated clinics. Regarding its BNPL service, Capim asserts that it presents a more affordable alternative to traditional credit card usage.

“In Brazil, installment payments are commonly made using credit cards, which necessitates both available credit and a limited repayment timeframe – generally six to twelve installments,” explained Biselli to TechCrunch. “Our solution provides enhanced flexibility, enabling payments over a period of up to 36 installments.”

Biselli further stated that the interest rates applied by Capim are approximately 50% lower than those typically charged by conventional banks.

Future Plans: POS Terminal and AI Integration

With the newly acquired capital, Capim intends to broaden its financial services by introducing a point-of-sale (POS) terminal. This terminal will offer clinics reduced merchant discount rates (MDR) and seamless integration with its existing SaaS financial management tools.

An MDR represents the fee levied on businesses by payment processors for handling debit and credit card transactions. The new terminal will support credit cards, debit cards, and PIX, Brazil’s instant payment system.

Furthermore, the funding will be allocated to the development of innovative AI-powered tools aimed at enhancing the efficiency of clinical operations. The startup also plans to accelerate its market expansion, growing both its network of clinics and its patient base.

Investment Details

Capim’s Series A funding was completed in two stages. Valor Capital and QED Investors co-led the investment round, with participation from existing investors including ONEVC, Canary, and NXTP.

New investors in this round included Endeavor, Saison, and Actyus, a fund managed by Creditas CEO Sergio Furio. The company has not disclosed its current valuation.

To date, Capim has raised approximately $29 million, including a $2.5 million seed round secured upon its initial launch in July 2021.

Founders’ Background

Lutz and Biselli first connected while pursuing their MBAs at INSEAD. They achieved success at the INSEAD Venture Competition in December 2020 before officially launching Capim after completing their degrees and a successful pilot program in early 2021.

Increased Accessibility in Dental Care

The company reports having facilitated dental care access for over 60,000 individuals in Brazil to this point.

Although specific revenue details were not revealed, Lutz indicated a tripling of revenue throughout 2024. This growth coincided with the addition of over 4,000 clinics to their network. Currently, Capim supports 6,000 dental practices and anticipates exceeding 10,000 before the close of the year.

While not yet operating at a profit, the co-founders confirmed the company achieved a break-even point by the end of the previous year.

Revenue Streams

Capim generates income through two primary avenues. These include SaaS subscriptions, offering clinics digital tools for operational management, and financial products designed to enhance patient accessibility and, consequently, clinic revenue.

The team has grown to 130 employees, an increase from 115 a year prior.

Investor Perspectives

Carlos Costa of Valor Capital highlighted that their investment decision was driven by Capim’s focus on resolving significant issues faced by dental professionals. These challenges relate to clinic management, treatment financing, and payment processing.

Mike Packer from QED Investors shared that his firm had been monitoring Capim’s progress since its inception.

“Observing the company’s rapid scaling and robust unit economics, we became confident in its early product-market fit,” Packer explained to TechCrunch. “The initial traction was viewed as a strong indicator of future potential.”