Neon Pagamentos, a leading Brazilian fintech, has secured a Series C investment of $300 million led by General Atlantic, a leading global growth equity firm. New investors participating in the round include funds and accounts managed by BlackRock, as well as Vulcan Capital, PayPal Ventures, and Endeavor Catalyst, in addition to former investors Monashees and Flourish Ventures. BBVA also participated via existing shareholder Propel Venture Partners. The investment will be split between two tranches of $150 million each.
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“This new financing enables us to continue our mission of serving even more clients with an increasingly robust offering.”
The Series C proceeds will be used to support hiring efforts, grow Neon’s user base across consumer and business clients, enhance the platform’s technology capabilities, and invest in product development. Specifically, the financing will fuel key growth areas, including the release of new products and features on Neon’s consumer platform, including those geared toward direct deposit customers, as well as rolling out additional financial services to its growing user base of around 1 million micro-entrepreneurs through its MEI Fácil platform, which provides tax and payments products. Proceeds will also be used to scale the company’s credit offerings, which will be key to driving additional business monetization. It will also enable Neon to pursue strategic M&A opportunities that can further enrich its offering.
The increased need for digital-based services amid the global health crisis has accelerated Neon’s already rapid growth trajectory. Neon’s platform has met this demand by providing an alternative to in-person banking solutions, and has seen a surge in deposits, investments, and online purchases, as well as an uptick of 26% in new users since March as a result. As Neon strives to become a full-service financial institution, its customer base has grown to more than 9.4 million accounts to date, which has expanded alongside the company’s broadening product offering.
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