Juvo raises $25M FIDC to expand access to credit in Brazil

Brazilian microcredit fintech Juvo raised $11.5M in equity and $25M through an FIDC, led, coordinated, and distributed by SRM.

Juvo aims to expand access to credit for Brazil’s underserved lower-income population, particularly classes C and D segments often excluded by traditional banks. Juvo uses artificial intelligence and proprietary technology to build credit scores for individuals with little or no banking history. Juvo’s use of mobile phones as collateral. Through fiduciary alienation, borrowers retain access to their phones, but non-essential apps are temporarily disabled if they default.

Juvo will use the funds to grow its loan offering, especially for Brazilians overlooked by traditional financial institutions.

“With our model, we’ve already extended R$1.6 billion in credit, creating financial opportunities for those who need it most,” said Steve Polsky, founder and CEO of Juvo.

Juvo currently serves more than 20 million Brazilians and offers loans of up to R$4,500 at below-market interest rates. The company also partners with telecom providers through a white-label model, delivering prepaid mobile credit advances to over 100,000 users daily.

Read more on Startupi