Creditas Auto was reportedly introduced with the objective of strengthening the relationship with Creditas’ existing customers, “providing consumers with a solution to buy, sell and trade a car.”
According to the firm, there are clear synergies with their lending and insurance operation, with Creditas Auto becoming their “best” auto finance loan originator.
However, during the business expansion, they claim to have realized that they could be more efficient “with a more agile business model that helps them leverage the relationship with their partners and focus on intermediating the purchase of a car.”
During the next months, the firm says it will “migrate the business model of Creditas Auto to focus their efforts on C2C transactions (purchase of cars between individuals) and the optimization of the process to support the sale of their customers of Auto Equity and Auto Fin.”
This change has “the objective of strengthening our business of lending and insurance, and will be possible thanks to the expertise achieved in our ibuyer model through Creditas Auto.”
The implications of these changes are:
The firm will discontinue their car reconditioning center, “starting operations with third parties from now on, allowing them to be more efficient in our processes.”
With the lower need of inventory associated with the new model of Creditas Auto, the firm will reduce “the number of physical stores from 6 to 3 over the next months.”
For all the teams involved in Creditas Auto, the firm will reportedy “have a migration plan towards the new model of Creditas Auto, and transitions to different areas that will be discussed with their respective leaders.”
As reported last year, Brazil’s secured lending platform Creditas is getting ready to expand its product offering, after obtaining a banking license as well as a mortgage marketplace.
The company is reportedly acquiring Brazil‘s banking license of Andorra’s Banco Andbank, allowing it to take customer deposits.
As part of the transaction, Andbank has effectively become a minority shareholder in Creditas, adding to the Brazilian Fintech company’s $260 million Series F investment round by $50 million.
As noted in the update, Creditas is also raising a convertible note for an additional $150 million in order to pursue certain strategic opportunities while continuing to expand its ecosystem. It has also acquired Kzas, a mortgage marketplace.
Sergio Furio, CEO at Creditas, stated (last year):
“With the acquisition of its banking operation, we will be able to continue our fast growth with deposits as an additional source of funding.”
As covered in January 2022, Latin American Fintech Creditas confirmed a $260 million Series F financing round, leaving it with a valuation of $4.8 billion.
The company raised $829 million across six fundraising rounds. Fidelity joined as a new key shareholder along with Actyus (a Spanish fintech investment fund) and Greentrail Capital.