RecargaPay licensed to operate an SCD

In order to strengthen its loan operation, in August 2021 RecargaPay debuted in the debt market with a debenture of BRL 40 million, structured by the securitisation company Vert Capital and by the manager Milenio (which also invested in the issue). The amount raised will be used to finance microcredit offered in the application to fintech customers. In addition, loans, starting at BRL 10, have a payment term of up to 90 days and are spread throughout Brazil.

Founded in 2009, the application was born as a digital wallet, with only the recharge functionality. Today, in addition to the service, the platform works on other fronts, such as paying bills, requesting loans and instalments, in addition to purchasing cooking gas and gift cards, for example. The fintech also has a subscription programme in which the user has access to higher limits and discounts. 

The market is large enough for several players to operate in their niches, offer customised products and services to consumers and direct the industry as a whole for the future, the company states. Originally, RecargaPay had operations in several countries in Latin America, such as Argentina, Chile, Colombia, Mexico, Peru, and Brazil, in addition to Spain and the United States. But in 2016, the company decided to focus on the Brazilian market, not only because it is the largest in Latin America, but also because of its great penetration of credit cards.

In March, it raised USD 70 million in a Series C round, led by IDC Ventures and Fuel Venture Capital, with participation from funds ATW, LUN Partners, and the corporate venture Experian. It was the third round made by the fintech. In total, the startup has raised more than BRL 550 million from investors such as IFC (the investment arm of the World Bank) and FJ Labs.