Brazilian fintech Cerc to raise USD 100 mln ahead of IPO

Thursday 31 March 2022 14:26 CET | News

Brazil-based fintech Cerc has set itself to raise USD 100 million from venture capital funds as it prepares for an IPO.

The announcement comes at a time when Cerc's business has been increasing, supported in part by changes introduced by Brazil's central bank in June 2021 making it mandatory to register credit card receivables on electronic platforms.

That regulatory change facilitated the company's revenue boost by 10-fold and the sector is expected to grow again in 2022, albeit at a slower pace, according to the press release. At the same time, the company has been making progress in other businesses, such as its clearing house and central depository for assets which should be operational by the end of 2022.

Cerc has already applied to the central bank to register the business and will also request authorisation from the Securities and Exchange Commission (CVM) in April 2022. Company officials said that as the firm was expanding on many fronts, it would invest in increasing its workforce from about 150 now and eventually look at potential acquisitions of startups.

Founded in 2015, Cerc's initial focus had been to provide an online platform for factoring deals, acting as an alternative to notaries, to help the owners of the receivables use them as collateral to get cheaper credit.

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Keywords: IPO, central bank, expansion, funding, fintech
Categories: Payments & Commerce
Countries: Brazil
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