Brazil remains a very intriguing region for payment innovation. For example, Neon, a digital bank, wants to launch a Credit Rights Investment Fund focused on credit cards. A fresh $80 million investment brings the firm’s size to $170 million.
Good News For Neon
It is remarkable to see how one can use existing payment vehicles for innovative purposes. More specifically, Brazilian digital bank Neon has high hopes for credit cards. The purpose is to launch a Credit Rights Investment Fund valued at $170 million. That fund will help the bank use technology and analytical tools to bring credit to Brazilian workers.
Moreover, Neon has gone through bullish growth in 2021. The company sits on a credit portfolio upward of $250 billion. Ensuring that the portfolio generates more revenue and growth remains crucial, even if it becomes trickier. Neon aims to leverage its Credit Rights Investment Fund to ensure ongoing growth without compromising the bigger picture.
Neon CFO Jamil Marques adds:
“Today our credit engine is mature and the FIDC resources will give us the strength to continue expanding our portfolio in a sustainable and balanced way in the med-long term. The focus continues to be on the Brazilian worker, and always with the mission to reduce inequalities by building paths to credit.”
It will be interesting to see how far this FIDC idea carries. Having a $170 million war chest to work with is substantial, even if the macroeconomic conditions remain relatively uncertain. Neon has successfully raised money for the second time, confirming growing interest in FIDCs.