Brazil’s digital bank Neon raises $94m led by General Atlantic
Brazilian digital bank Neon has raised $94 million in a funding round led by fintech-focused General Atlantic and the seventh largest bank in Brazil Banco Votorantim.
Native publication Estado reports that three-year-old Neon aims to triple its customer base in 2020, which its says currently stands at around two million when it counts just active accounts.
This reach for customers comes after fellow Brazillian challenger Nubank said it achieved the 15 million customer mark.
Not to be confused with the Swiss free digital bank also called Neon, the Brazilian neobank has now raised a total of $121 million according to Crunchbase.
Other investors which participated in the most recent round include Washington venture fund Quona Capital, California-based Propel Venture Partners, ‘philanthropic investment firm’ Omidyar Network and Brazilian venture capital firm Monashees.
Investors recognise the climate in Brazil is ready for disruption in banking, a country with notably high interest rates and less choice of banks.
“The Brazilian banking industry is ripe for change, and Neon is providing new solutions that are resonating with Brazilian customers,” says General Atlantic’s principle Luiz Ribeiro.
With most of the capital will be directed to hiring new people. The challenger wants 600 employees by the end of 2019, which is triple what it had when it entered into this year.