Dinie secures USD 3.8 mln investment

Thursday 15 July 2021 12:54 CET | News

Brazil-based API-first embedded finance fintech Dinie has announced a USD 3.8 million seed round, according to the official press release.

The round was led by Accion Venture Lab and K50 Ventures, with participation from Flourish Ventures, Domo Invest, and Tribe Capital amongst other funds, and several individuals from companies including, Divvy, and more. The company also announced that it has concluded its own securitisation structure securing a further USD 20 million in debt financing capacity from Empirica Investimentos, a local structured debt investor, with a portfolio under management of USD 1 billion. The investment will be used to accelerate the company’s end-to-end embedded credit infrastructure and further expose its APIs to Brazil’s ecommerce platforms and serve more than 15,000 MSMEs with embedded products such as Dinie Credit Account (business overdraft) and DiniePay (Buy Now, Pay later for businesses).

By embedding their infrastructure and services within existing platforms that MSMEs already use, Dinie can reach potential MSME customers. Dinie then leverages the platforms’ data to approve and underwrite revolving credit and monitor cash flow and repayment behaviours to adjust credit lines and approve new drawdowns without additional paperwork. Dinie’s digital credit account further enables MSMEs to fund their working capital and to pay for their daily business expenses.

Brazil is home to more than 17 million MSMEs with a USD 480 billion financing gap and most banks are unable to effectively serve them with financial products that are bespoke to their transactional needs, convenient, and cost-effective. With MSMEs migrating to digital business models, particularly after the COVID-19 crisis, banks will struggle to cater for their online purchasing, digital payments, integration to digital platforms, and more. These changes pose an opportunity in a large underserved growth market. Ecommerce for instance, Dinie’s target market, is expected to grow by approximately 20% YoY in the next four years, says the press release.

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Keywords: fintech, investment, embedded payments, API, BNPL
Categories: Banking & Fintech | Online & Mobile Banking
Countries: Brazil
This article is part of category

Banking & Fintech