Creditas raises $200 million and buys a Brazilian bank

Brazilian lender Creditas is raising $200m and buying a bank and mortgage startup in a bid to bolster profitability, according to a Friday, July 8 press release.

In an interview with Reuters on Friday, Creditas CEO Sergio Furio said his company, which runs an online consumer lending platform, is buying Andbank’s Brazilian banking license and plans to start taking deposits. .

“Getting retail deposits as a new funding alternative will improve our margins,” Furio said.

Read more: Brazilian lender Creditas valued at $4.8 billion

Reuters noted that so far, Creditas has just been funding itself in the capital markets. With its agreement with Andbank, the company will distribute the products of its credit portfolio to the bank’s investors. Andbank, based in Andorra, will remain in Brazil as a broker and asset manager. The bank has $30 billion under management.

The deal, worth $100 million, still needs the green light from Brazil’s central bank, as well as CADe, the country’s antitrust authority.

Creditas also bought the Kzas mortgage market, a move that allows it to provide home loans to other lenders in addition to those it already offers. Creditas also specializes in car loans, insurance and the sale of used cars.

Furio said the new capital will also fund Creditas’ May 150 million ($28 million) investment in Voltz Motors.

Learn more: How Brazil is serving as a payment innovation model for Latin America

Creditas raised $260 million in January in a funding round that valued the company at $4.8 billion.

“We want to keep growing fast,” Furio said at the time. “And that means we have to invest in attracting customers, so that over time those customers will generate revenue in the recurring model that we have.”

PYMNTS reported in April that digital payments have become more popular in Latin America, particularly in Brazil, where 98% of bank customers use some form of digital banking.

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About: More than half of utilities and consumer finance companies have the ability to digitally process all monthly bill payments. The kicker? Only 12% of them do. The Digital Payments Edge, a collaboration between PYMNTS and ACI Worldwide, surveyed 207 billing and collections professionals at these companies to find out why going digital remains elusive.

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