Brazilian fintech Rebel has raised $110 million in new equity funding, according to media reports. Rebel offers unsecured credit to middle class citizens in the country.
Investors such as Monashees, Loggi and FinTech Collective have participated in the funding. This round of funding comes after it previously raised $4 million from XP among other investors.
The funding will be used to invest in new products, technology and customer base expansion. Also, it will add to the company’s cash reserves and improve distribution channels.
To date, Rebel has received more than $1 billion in loan requests, the local media reported. “We take an interest in companies that are willing to redesign their markets, led by entrepreneurs with a strong strategic vision and the discipline to execute,” Sean Lippel, principal at FinTech Collective, said in a statement. “We believe that Rebel has the opportunity to not only repair the broken $100 billion unsecured consumer credit market in Brazil, but also expand the availability of credit in the country by changing the way Brazilians relate to their personal finances.”
Traditional banks consider credit in Brazil to be expensive owing to delinquency rates. The country’s delinquency is high because it has the highest interest rates in the world. Against this background, Rebel aims to break the existing pattern and established a new favourable financial cycle in the country.
Rebel was established in 2017 by André Bastos, Paulo Nunes, and Rafael Pereira. The company offers no personal guarantee credit at lower interest rates than its competitors, according to the statement.