Divibank, the financing platform where LatAm companies have access to growth capital through revenue-sharing financing, announced on May 12, 2021 that it closed a $ 3.6 million Seed financing round led by Better Tomorrow Ventures (BTV) along with other investors, including MAYA Capital, Village Global, Clocktower Ventures, Magma Partners, Gilgamesh Ventures, Rally Cap Ventures, Alumni Ventures Group, Sebastian Mejia (Founder / President of Rappi), Tayo Oviosu (Founder / CEO) of Paga, who participated through Kairos Angels), Karim Atiyeh (Founder / CTO of Ramp), Josh Abramowitz and Daniel Simon (founders of Bread).
“We have been building and investing in fintech technology companies for the past 12 years and are excited to leverage our fintech technology experience with Divibank’s best team, local experience and vision.”
Divibank will use the funds to speed up its product roadmap and increase recruitment. They are also developing value-added software for their customers. The software will help your customers better manage their digital ad campaigns and optimize their investment profits. The company is also working on some additional financial products for its clients, targeting the $ 205 million e-commerce and SaaS markets in Latin America with offerings such as inventory financing and recurring income securitizations.
“We are building the platform for entrepreneurs who want to scale their businesses. Divibank is changing the way entrepreneurs scale their online businesses by providing fast, affordable and non-dilutive capital to emerging companies and Latin American SMEs. And as part of our smart money proposal, we also offer marketing analysis software so that our customers get more value from the capital they receive, ”said Jaime Taboada, co-founder and CEO of Divibank. “Banks and traditional financial institutions do not know how to evaluate Internet businesses, so they generally do not offer loans to these companies. If they do, it is usually a long and tedious process at a very high cost. With our offer of income share, the entrepreneur does not have to commit to his home, drown in credit card debts or even give up his assets to invest in marketing and growth, ”he added.
“Better Tomorrow Ventures realized that Divibank was not only a truly innovative company, but it was in the right place and at the right time to take advantage of the rise of e-commerce and digital advertising. The pandemic has only accelerated things. Many companies start online, many migrate from offline to online and emerging companies have recognized that venture capital is not the only alternative they have to grow their businesses. Divibank serves the needs of all these customers, “he said. dir Jake Gibson, founding partner of Better Tomorrow Ventures.
“We have been building and investing in fintech technology companies for the past 12 years and are excited to leverage our fintech technology experience with Divibank’s best team, local experience and vision,” Jake concluded.
Lara Lemann, co-founder and managing partner of MAYA Capital, which led the fund’s investment during this round of Seed, states that “Jaime and Rebecca continue to run at an incredibly fast pace. We have been close to Divibank from the beginning because Jaime was EiR [Entrepreneur-in-Residence] in MAYA, and we saw them navigate the start of operations in March 2020, right at the start of the pandemic. They are a formidable duo, forming a world-class team and organization in a rapidly expanding market.
Adriana Saman of Clocktower Ventures said: “Divibank was our first initial investment in Latin America made with our first fund focused on LatAm. We were impressed with what they achieved in just 12 months. They have managed to grow a lending business with a reduced structure, while testing multiple growth strategies along the way. ”
Divibank plans to use the funds to invest more aggressively in hiring top-tier talent around the world. Specifically, it will invest more aggressively in engineering / technology, sales, marketing, credit risk and operations. Today the team consists of seven employees in Brazil and this number is likely to grow to more than 25 in the next 12 months.
Divibank milestones include (last 6 months):
- It acquired more than 50 customers
- The total volume of loan issues grew 7 times
- Increased revenue by 5 times
- It increased its employee base by 4x, adding industry veterans from Brazil’s leading financial companies and financial institutions
“Our goal is to help Latin American entrepreneurs by giving them the resources they need to grow their businesses. We have ambitious plans and look forward to expanding our product and service offerings, ”said co-founder Rebeca Fischer and CPO of Divibank. “This investment shows that we are on the right track and is a vote of confidence in our mission to help SMEs and emerging businesses in the region,” he concluded.
“We are delighted to have these great partners on this journey. Our new partners have a lot of experience and have already added a lot of value. We will use the income from this round to scale our market start-up strategy, continue to improve our credit model and make our customers’ lives easier with investments in technology ”, concluded Taboada.