Brazilian Fintech Startup Facio is developing a financial education platform that not only offers free lectures and classes, but also payday advance services.
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Monashes and ONEVC led the $ 5 million round of funding for Facio and was joined by a group of strategic angel investors, including Igor Marchesini of To summarize, Gabriel Braga of QuintoAndar and Michel seibel, CEO of the accelerator Y Combiner. Total Facio funding to date is approximately $ 6.9 million, which includes a funding round in 2019.
“We started Facio because I saw the problem with my own eyes, even at SumUp,” Tristão told Crunchbase News. “The low-wage population is so large, and we saw the differences between the great resources in the United States and we wanted to provide quick access to wages. “
Shift the risk
Traditional payday loans put the risk on the employee, but with Facio’s model, the employer is the one helping the employee, so the risk would be if the company was unable to pay the salary, did he declare. This allows Facio to charge 100% cheaper fees than other alternatives in Brazil.
At the same time, the company proves that when employees get out of debt, there is a 17% improvement in productivity, at no additional cost to the employer, added Tristão.
Marcelo lima, a partner at Monashees, said in a written statement that connecting a payment method directly to a company’s payroll allows employees to anticipate their salaries and use future income to meet their financial goals.
“It’s a giant market in Brazil that offers anticipation and credit to millions of customers who now end up paying very high interest rates or simply have no other alternatives, ”he added. “Facio, by creating value for companies and employees, builds a B2B2C platform that allows to evolve and develop engagement with customers without depending on competitive and expensive paid consumption channels. “
Go after growth
Now armed with an injection of capital, Tristão said almost half of the money will be spent on loans as working capital, while the rest will go to growing the Facio sales team, to scaling up and obtaining a Brazilian license to become a financial institution. The license will allow the business to open bank accounts, make deposits and issue payday loans.
The global pandemic has been tough on Facio this year. The business experienced some difficulties from April to July, but in August began to grow, Tristão said. In August alone, Facio grew 10 times and doubled every month. The company has made more than $ 1.2 million on $ 7 million in loans and received more than that in fees, he added.
Then the company intends to increase the number of products, which include more banking capabilities after obtaining the license by Facio.
Drawing: Li-Anne Dias
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