TruePay, a startup whose payment solution assists SMEs retailers with getting free and secure access to credit, has acquired $32 million in capital via a Series A round that was led by Addition.
As mentioned in the announcement, this growth stage investment is one of the “largest ever made in Brazil.”
The proceeds will be directed towards enhancing the solution, increasing overall capacity and expanding the professional team. The startup, which has been growing 100% a month, intends to expand tenfold by the end of 2022. Founded in December 2020, TruePay has customers “throughout Brazil and a merchant base in the thousands.”
TruePay Co-Founders Pedro Oliveira and Luis Eduardo Cascão, stated:
“We are very happy to have the trust of some of the best investors in the world as well as the super talented people that we were able to bring on board. A raise like this is a symbol of the impact TruePay will make in the market by delivering free credit to millions of merchants in Brazil.”
Luis Eduardo Cascão, COO and co-founder of TruePay, remarked:
“The largest portion of this round will be used to further attract and develop talent in Brazil and elsewhere.”
The round comes at a key moment for TruePay to “empower its operation, which provides cost-free access to credit card receivables that can be used by retailers to purchase from suppliers,” the update noted.
The announcement also mentioned that the company is “building a B2B Buy Now Pay Later network where industries can grant credit without being exposed to risk and buyers may access credit seamlessly at no cost.” Retailers have access to “better payment conditions, doing larger purchases at longer terms and freeing up working capital,” the announcement added.
Lee Fixel, Founder of Addition, said:
“The strength of TruePay’s solution lies in the convergence of a real and untapped need amongst retailers to unlock credit and free up working capital, a large addressable market and a talented team. We look forward to supporting the company as it continues to develop its innovative, convenient and low-cost payment technology.”
As noted in a release, TruePay aims to unlock credit card receivables and “transforms them into purchasing power.” By using such receivables as collateral, retailers can “guarantee the payment to suppliers and access better payment conditions and more working capital, while suppliers are no longer exposed to default risk,” the update explained.
