TruePay, a fintech startup based in Brazil, has secured $32 million in Series A funding to help small and medium businesses (SMB) gain access to credit, allowing them to get off the ground.
The round was led by Addition with participation from Monashees, Kaszek, and Global Founders Capital, according to Crunchbase. The funding brings the total funding raised by the startup to $40.5 million. Pedro Oliveira, CEO and co-founder of TruePay, referred to the round by stating:
“We are very happy to have the trust of some of the best investors in the world as well as the super talented people that we were able to bring on board. A raise like this is a symbol of the impact TruePay will make in the market by delivering free credit to millions of merchants in Brazil. The largest portion of this round will be used to further attract and develop talent in Brazil and elsewhere”
Founded in 2020, TruePay has built a B2b “Buy Now Pay Later” network that allows buyers to access credit seamlessly at no cost while creditors remove their risk exposure. This is possible by making use of credit card receivables as collateral, which ensures better payment conditions and the guarantee of payment. Lee Fixel, Founder of Addition, said in this regard:
“The strength of TruePay’s solution lies in the convergence of a real and untapped need amongst retailers to unlock credit and free up working capital, a large addressable market and a talented team. We look forward to supporting the company as it continues to develop its innovative, convenient and low-cost payment technology.”
TruePay has achieved an important milestone by closing one of the largest ever funding rounds in Brazil. The startup has seen a growth of more than 100% every month since being founded, which it plans to grow tenfold by the end of 2020 at a time when SMBs in the country are starting to recover from the effects of the COVID19 pandemic and relying on fintech startups to get off the ground.