BizCapital, a Brazil-based SME online lending platform, announced on Wednesday it secured $12 million through its Series B funding round, which was led by German development finance institution DEG, a subsidiary of KfW Group, Germany’s promotional bank. Along with DEG, MELI Fund, the Corporate Venture Capital Fund of MercadoLivre, also participated in the round.
Founded in 2016, BizCapital provides online working capital loans to SMEs. The company’s key mission is to help Brazilian entrepreneurs get access to the capital that they are needing to grow their business. The platform has reportedly served more than 5,000 in more than 1,200 Brazilians. Francisco Ferreira, CEO and Co-Founder at BizCapital, stated:
“What we aim to achieve with these new resources is to continue helping entrepreneurs during the entire lifecycle of their companies.”
Felix Schneider, DEG Vice President FinTechs Global Markets, added:
“BizCapital’s tech-driven business model as an online lender enables an innovative, efficient and effective way of providing financing to SMEs that are the backbone of the Brazilian economy.”
Funds from the investment round will be used to accelerate the development of new product offerings to Brazilian SMEs, as well as to continue developing new distribution channels. BizCapital previously raised a Seed Round in January 2018 from Monashees, one of the leading VC firms in Latin America, Chromo Invest, and 42K Investments. In September 2018, it raised a Series A of $5 million led by Quona Capital, a Washington-based VC firm focused on fintechs. Current investors have also joined the Series B round.