Brazil-based fintech startup Creditas raises $260 million in new funding at a valuation of $4.8 billion

Creditas, a SoftBank-backed fintech startup, has raised $260 million in its sixth funding round to expand its collateralized loan business in Brazil and Mexico. The round solidifies Creditas’ position as a member of the Brazilian unicorn, with a valuation of $4.8 billion.

The round was led by Fidelity Management & Research LLC, with participation from  Spanish fintech fund Actyus and Greentrail Capital. Existing investors including SoftBank Vision Fund 1 and Wellington Management also participated.

In a statement, Will Pruett, managing director at Fidelity said, “With collateralized lending they have taken on a complicated problem in a complicated market.”

Founded in 2012 by Sergio Furio, a Spanish former consultant, the Sao Paulo, Brazil-based Creditas operates a digital platform providing secured loans and low-interest rates. The fintech startup provides credit lines to people shunned by Brazil’s biggest lenders. specialized in loans secured by assets like homes, autos, and salaries, credit lines shunned by Brazil’s biggest lenders. The startup was formerly called BankFacil before it changed its name to Creditas.

As uncertainty mounts for tech companies amid concerns that the U.S. Federal Reserve might raise the interest rates to control the spiraling inflation, Furio said the startup decided to raise more capital to safeguard its growth this year and next year.

“Markets are a bit chaotic, so we decided it would be good to bring money in,” said Furio, adding he found tech investors very concerned about the macro environment. The company will use the new cash infusion to expand its current portfolio of products.