Brazil-based Recargapay raised $70M Series C Funding

0
48
recargapay series 100mmccarthytechcrunch

This morning, RecargaPay, a fintech company with headquarters in Brazil that enables customers to top off their prepaid smartphones online, revealed that their $70 million Series C funding round had concluded. The purely Brazilian-focused business was established in 2010 by Miami-based serial entrepreneur Rodrigo Teijeiro, who also serves as co-founder and CEO.

In contrast to the U.S., where the majority of people have a cell phone plan through a major carrier, many Brazilians must purchase calling cards at neighborhood stores to add credit to their phones, allowing them to avoid a recurring monthly bill. The country’s current living wage is $1,100 reals ($202 USD).

At first, RecargaPay operated in several Latin American nations, including Argentina, Chile, Colombia, Mexico, Peru, and Brazil, as well as in Spain and the United States. But in 2016, the business chose to concentrate on the Brazilian market, which is not only the largest in Latin America but also has the highest credit card penetration rate.  

“The biggest error shareholders make when venturing into Latin America is believing that the region is one big market. However, all the regulations are extremely dissimilar, particularly in fintech. That is why scaling in Latin America is challenging, he said.

The $19.99 genuine monthly price is how the business gets the money. Customers who use the app to top off their phones online receive 4% cash back since RecargaPay receives the corresponding payment from the cell phone carriers and then passes it along to the consumer.

In a statement, the company said it would use the $70 million to “expand its financial services offerings to small individuals and firms, including further advancement of its famous subscription program Prime+.” The business, which Teijeiro claims are EBITDA positive, has elevated just over $100 million in capital to date.                          

RecargaPay was established in Brazil in 2010 with the goal of offering a complete and user-friendly wealth management ecosystem that would be available even to those without bank accounts. The RecargaPay mobile app enables users to send and receive money, bill payment, request for and obtain microloans, top up their city bus and metro accounts, buy gift vouchers, and more. Additionally, customers can add money to their RecargaPay wallet by making in-person cash deposits at retail locations or by making bank or card transfers.