LatAm List – In May 2019, we reported that Japanese investor SoftBank was considering a $230M investment in Brazilian lending platform, Creditas. Today, SoftBank made a $200M investment in Brazilian fintech Creditas, which offers credit lines of $1.3K to $518K (BRL$5K to $2M) to borrowers that can provide a property or a vehicle as collateral. Creditas received the investment at a $700M valuation.
Creditas’ default rate is less than 2%, and they charge an average interest rate of 2% on vehicle loans, and 1.25% on home equity. The fintech startup estimates that there are more than $259B (BRL$10T) in assets available to be used as collateral in the Brazilian market.
“Considering a loan-to-value of 30%, we could have a potential loan market with a guarantee of $259B (BRL$10T). And that’s just from existing inventory,” said Fabio Zveibil, Creditas’ VP Business Developer.
Since 2016, Creditas has lent more than $500M and in 2018 saw its net revenue increase fivefold.
In the future, Creditas aims to launch new credit options using other alternative assets as collateral.
Read more on Brazil Journal.