Brazil's CashU secures USD 17.5m credit facility from Itau BBA and Credit Saison
Brazilian FinTech CashU secured a $17.5M Credit Rights Investment Fund (FIDC) backed by Itaú BBA and Credit Saison to finance its lending operations. The provision of credit is essential for small and medium-sized businesses to be able to scale at an adequate pace. With the launch of the fund, the FinTech hopes to expand its portfolio of credit clients for SMEs.
CashU was established in 2019 to bring to Brazil a movement that had been happening for years in the United States: the use of artificial intelligence, data science and analytics to grant credit to SMEs. It required a lot of educational work, as this concept was still new in the Brazilian market. Five years later, the scenario has changed, and everything CashU had been building became a leading market proposition.
CashU uses artificial intelligence to offer B2B credit to SMEs and retailers across the country, working through industries and suppliers that contract the solution and make it available directly at the checkout of each purchase. The FinTech has developed a proprietary predictive model that analyzes each customer individually, assigning a score, term and credit limit in real time. This highly dynamic system is fully integrated with the payment solutions already used by the industry. In addition, CashU's AI uses neural networks to analyze a wide range of behaviors, allowing for the hyper-personalization of credit offers in real time for all transactions.
The decision to raise funds via FIDC was based on a market analysis, considering opportunities and strategic aspects. FIDCs in Brazil have become a source of financing with several advantages. First, there is a solid track record, with a large number of FIDCs raising private funds and operating with adequate governance to reduce risks and capital costs. In addition, they are vehicles highly regulated by the CVM, with a standardized market structure and an administrator responsible for ensuring that the investor’s money is used as intended. Over time, a robust ecosystem has formed around FIDCs, making them the most advantageous option for financing such as those sought by CashU.
The FIDC operation represents a strategic step for the company towards the Series A investment round. The FinTech already has the support of ABSeed , which in 2021 led CashU 's first fundraising with institutional investors, for R$6.1 million. The investment included the participation of Caravela, ScaleXOpen, Bertha Capital and angel investors.
CashU has recorded double-digit growth month after month and has ambitious goals for the future. The FinTech expects to make R$1 billion in credit available to SMEs in 2025. CashU has two of the three largest B2B marketplaces in the country as clients. The proprietary FIDC strengthens their operations and demonstrates the interest of private credit investors in portfolios generated with artificial intelligence, thus moving the FinTech one step closer to a Series A round.
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