Brazilian digital bank Neon has secured an $80m investment in its first Credit Rights Investment Fund (FIDC).
Asset management platform Empírica is responsible for the management of FIDC, which is focused on credit cards.
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By GlobalDataAlongside Empírica, XP and BV also led investments in the fund.
The latest funding follows over a $40m funding for Neon’s private payroll deductible FIDC at the beginning of this year.
The digital bank plans to launch new solutions to enable customers to access credit throughout the year and hopes that FIDC will provide flexibility to its growth strategy.
Recently, the digital bank launched the elastic limit, which allows the expansion of credit for one-off purchases based on credit assessment. It already offers payroll loans, personal loans, and credit cards.
Neon CFO Jamil Marques said: “The funding endorses the strength and positive history that we have been building in the management of the credit portfolio over the last few years.
“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.”
Empírica managing partner of business expansion Giuliano Longo said: “We are excited about this partnership that began on the first months of the year as a one-off investment in another Neon FIDC, focused on private payroll loans. Based on this good experience, we expanded our relationship to take over the management of the credit card fund.
“The intention is to bring more comfort and security to investors, including ourselves who, via funds of funds managed by us, contributed a total of $20m to FIDC Neon. This shows an alignment of interests with the other investors in this fund.”
Earlier this year, Spanish banking group BBVA made a $300m investment in Neon to expand retail banking operations in Brazil.
The investment was part of Neon’s Series D funding round, which valued it at $1.6bn.