YCombinator invests in Brazilian fintech Conta Simples

LatamListConta Simples, a startup founded in 2019 in São Paulo providing a digital banking solution for SMEs, is the latest investment in Brazil by YCombinator.

It works like a bank account, processing transfers, withdrawals, and payments, but the main differences are unlimited corporate cards and different access profiles for digital account data. 

Conta Simples charges fees for services and use of its credit cards. About 5,000 companies have already registered.

“The digital account revolution in Brazil only happened to individuals. We looked at the SME market and saw that nobody was still serving this type of customer well,” said Rodrigo Tognini, the founder of Conta Simples

According to a report by PwC, SMEs represent almost 30% of Brazil’s GDP and employ more than 15M people.

“We decided to invest in Conta Simples for a few reasons. First, because we were impressed with the number of customers they already have. Second, because we were impressed with the founders, their momentum and their focus,” said Dalton Caldwell, a Partner at YCombinator.

Conta Simples received investments from funds such as Big Bets, Domo Invest and Brazil Venture Capital, as well as investors like Rodrigo Dantas, the founder of Vindi, Diego Gomes, from Rock Content, and Dorival Dourado.

“It is a more complex product, so it was natural for the first fintechs to start targeting the individual. But as this market became more saturated, the focus is now on the SME market. The next step is to have credit, financing, insurance startups, also for SMEs,” said Rodrigo Tognini, the Founder.

Conta Simples intends to launch new services such as access profiles to integrate with accounting systems, payroll management, and a credit marketplace platform.

Read more on Exame

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