In 2023, KLYM will use the funding primarily for its expansion in Brazil. The company, originally known as OmniLatam, also has expansion plans for Chile and Colombia and is coordinating with authorities to establish a company in Mexico. By the end of 2023, the company hopes to have roughly 100 employees working there. It will hire 80 new employees in Brazil. Including Colombia and Chile, it has more than 400 employees.
The round has been led by JP Morgan Chase and International Finance. Since the middle of 2022, KLYM and JP Morgan have been partners in a strategic agreement that enables the fintech to conduct trade financing and acquire capital in USD, EUR, and other currencies. JP Morgan is looking for partnerships to provide digital banking services to small and medium-sized businesses (SMEs) and retail customers outside of the US.
Brazilian firms in the pharmaceutical, biofuel, and agricultural sectors have given the company contracts, and financing is anticipated to exceed USD 1 billion in 2023. KLYM supports 25 different currencies and can finance suppliers in 32 countries, including China.
The company has now raised USD 95 million in equity since its founding. It anticipates the business will turn a profit after revenue quadrupled in 2022 to reach USD 25 million. It aims to attract additional funding in 2023. KLYM processed more than 700 million dollars in loans in 2022 and has a credit portfolio worth 170 million dollars.
The company provides general working capital as well as receivables finance. It gathers information from tax returns and invoices to inform credit decisions based on the customers, sales, and staff of the potential borrower.
KLYM has distributed more than USD 480 million since it began operating in 2018, helping more than 2,000 businesses get access to quick, safe liquidity so they can keep expanding. All of this is made possible by the company's online invoice tools, including Factoring and Confirming, which allow businesses to advance the payment of their accounts receivable.
For nearly 60 years, JP Morgan has operated locally in Brazil, providing expertise in the areas of markets, corporate and investment banking, wholesale payments, private banking, and asset management.
JPMorgan has been expanding its staff and offering additional services to Latin American corporate clients. From 4,750 in 2020, it had approximately 6,200 workers in the area by 2021. It created a tech hub in Argentina to create items for the world market.
Using its own channels and further agreements with regional distributors, the bank also intends to introduce other asset-management products to Latin America, including exchange-traded funds.
The US-based bank also owns a small portion of KLYM and has previously made investments in two Brazilian companies. It decided to invest in C6, a digital bank based in Sao Paulo, in June 2021 after purchasing shares in FitBank Pagamentos Eletronicos, another fintech company in Brazil, a year earlier.
Apart from the US, JP Morgan only has retail banking operations in Brazil and the UK.
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