Brazil-based Solfácil, a Fintech firm focused on helping with financing the installation of solar panels in homes, is reportedly looking to expand its operations after acquiring additional funding.
In statements shared with BNamericas, Fábio Carrara, the founder and CEO, stated that the company is currently focused on financing projects that involve installing solar panels in peoples’ homes. Carrara said that this helps customers with reducing their electricity bill.
Carrara noted that the capital raised will be used to create payment plans that offer financing options to SMEs.
Carrara’s investors include Valor Capital Group, which has made strategic investments in established Brazilian companies such as Stone, Gympass and Loft. Several angel investors also took part in the firm’s $4 million investment round.
Earlier this year, the Fintech company also acquired around $23 million in capital through debt financing. It’s now planning to secure additional funding by September 2020.
Only around 0.3% of Brazilian households are using some type of solar energy solution, meanwhile, about 20% of Australian homes and 3% of US homes have invested in solar power.
Carrara said that, for now, the company won’t be looking to enter new markets, outside of Brazil. However, he believes that Mexico could be a great market for replicating the firm’s business model in the future.
The Fintech firm has a loan portfolio of 50 million Brazilian reais (appr. $9.5 million), which it expects to surpass 350 million reais in the coming year. Solfácil offers loans for up to a 120 month period.
Carrara claims that the company won’t compete with local banks, because they are unable to offer credit for more than 5 years or 60 months. He also claims that Brazilian banks don’t have credit specialists who are as experienced as professionals working at Solfácil.