Creditas aims to reach breakeven in 2023. It has reduced losses for five straight quarters and is repricing the portfolio with higher rates.
Creditas recently closed one of the largest rounds in Latin American history and has originated more than $100mn in loans since 2011; they company offers loans backed by collateral, charging 17 to 25 percent for their home equity loan and 23 to 50 percent for auto equity loans; this is unique as banks typically charge 120 percent APR on unsecured loans and 480 percent APR on revolving credit cards; having a lower cost, more secure loan has seen them keep defaults around 1 percent and grow the company workforce threefold in the past year alone. Source.
Latin America's neobanks showed growing profits and robust customer acquisition in the quarter, a sign of resilience amid economic troubles.
The Brazilian digital lender added $200 million in its ninth funding round and announced it was buying both a bank and a mortgage lender.
Creditas is a Brazilian fintech startup that is now valued at $700 million; the company was originally founded in 2012...
According to Creditas' recently released figures, the company recorded a loss of $26 million, a 60% drop from the same period in 2022.
Across Latin America, fintech lenders are accelerating profitability strategies amid growing pressure from markets to yield profits.
Creditas is an online secured loan provider in Brazil; the company has announced the release of its 2017 Brazil Lending Market Report which provides an overview of the country's trends in consumer lending; also reports on market metrics including interest rate spreads and outstanding debt by lending categories. Source
Creditas made a bold acquisition in the context of uncertainty, as valuations for many fintechs plunged amid rising rates and volatility.
Creditas, a provider of online secured loans in Brazil, has raised $16 million from the asset-backed securitization market and will use the proceeds to fund auto loan refinancings; the firm partnered with Empirica Investimentos Gestao de Recursos Ltda to launch the securitized investment portfolio, FIDC Empirica Creditas Auto; Creditas seeks to capitalize on an auto loan refinancing market opportunity that has seen increased risk from higher defaults with decreased lending from traditional banks; Brazil reports secured personal credit accounts for 1% of the country's outstanding loans; Creditas plans to offer auto refinancing at monthly rates of 1.99% to 3.65% for an annual rate of approximately 37% which compares to bank rates annually of 120%. Source