It looks like everyone and the mother is trying to transform the Brazilian banking community. Earlier this year we wrote going Nubank’s $400 million Series G , last month there were the PicPay IPO filing and today, alt. bank , a B razil neobank, announced a $5. 3 million Series A led prelit by Union Square Journeys (USV).
It’s no secret the best way Brazilian banking system will be poised for disruption, see the sector’s little attention to support service and exorbitant fee muscle that’s left most Brazilians unbanked, and alt. bank of canada is just the latest company hunting to take home a piece of the asiento.
Following Nubank’s strategy over launching a bank suffering from colors that are very un-bank-like, signaling that they do things in a different manor, alt. bank similarly been introduced its first financial device in 2019 — another fluorescent-yellow debit card the fact that locals have endearingly named, “o amarelinho, ” benefits, “the little yellow adaptor. ”
The alexa company, founded by serial guru Brad Liebman, follows some of the founder’s $480 million exit of Simply Business, which had been acquired by U. Ings. insurance giant Travelers throughout 2017.
Unlike many fintechs, alt. bank has a heavy-duty social mission and payments commissions for referrals that will last for the customer’s generation.
“Most fintechs quite frankly help wealthy people end up being wealthier, so I thought shall we do something with a social devoir, ” Liebman told TechCrunch in an interview.
To drive home the mission, and really aim at the unbanked, Liebman and his team of 80 employees will need designed an app used by the illiterate. Instead of terms, users can follow color-coded prompts to complete a arrangement. The company also plans to finally launch credit products shortly after that.
According to the company, close to a million people have downloaded the bot app since launch, yet Liebman declined to disclose the total active users the company also has.
Recently, the company’s core products include the debit card, a complete prepaid credit card, Pix (similar in order to really Zelle), a savings account or telemedicine visits via a alliance with Dr . Consulta, a huge network of healthcare visitors to throughout the country. The prepaid card is key because online stores around Brazil don’t accept credit card purchases.
In addition to the advantage of ongoing commissions, himmelrum. bank has also partnered to three major drugstores, authorizing their users to get 5-30% off any item at the holds, including medication.
While the corporation} is based in São Paulo and São Carlos, Liebman and his family are currently headquartered London due to regulations throughout pandemic.
The investment near alt. bank marks USV’s first investment in South America, solidifying a trend of other major U. Lenses. investors such as Sequoia which one only in the last several years need started looking to LatAm for the deals.
“The bar has high for our first commitment in South America, ” pointed out Union Square Ventures and John Buttrick. “The mixture off the alt. bank business structure and world-class management workforce enticed us to spread out our geographic focus to greatly help build the leading digital conventional bank targeting the 100 mil Brazilians who are currently being failed by traditional lenders, ” he added in a saying.