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Don't worry, we speak : Español (Spanish), too!

One7 acquires fintech Rapidoo to expand financing to SMEs in all of Brazil

Don't worry, we speak : Español (Spanish), too!

ContxtoOne7—a company that offers financial solutions to businesses in Brazil—wants to do more in terms of credit for cash flow. To this effect, One7 recently bought fintech Rapidoo

The startup will be allowed to continue operating independently, but can now benefit from One7’s network to scale.

“We’ll be focusing on customers who bill up to R$500,000 (~US$93,500) per month, who in general do not have access to credit or services such as cash flow for accounts receivable,” says João Paulo Fiuza, CEO of One7. 

“We will take a leap in geographic expansion with the acquisition, serving customers from all over the country.”

The parties did not disclose the value of the transaction. However, One7 did state that it will inject R$50 million (~US$9.3 million) in financing for businesses to pay their receivables.

One7, Rapidoo and cash flow

Pedro de Cicco, Thiago Frigo, Caspar Gerleve, and Raphael Monteiro launched Rapidoo in 2016 to give small business access to credit. 

With Rapidoo, small companies were able to access financing to pay their invoices on time. But now through One7, the startup hopes to reach more businesses in Brazil.

“Their financial infrastructure and market knowledge will help us accelerate making our receivables management solution available to the millions of micro and small businesses in Brazil who do not yet have sufficient access to credit,” noted Caspar Gerleve, co-Founder and CEO at Rapidoo.

SMEs are calling for credit

Due to the coronavirus pandemic, small businesses across Brazil are in a cash flow crunch; invoices are piling up and demand is slipping down. 

The government and banks have issued credit lines. Nonetheless, it’s insufficient according to Ercílio Santinoni, President of the National Confederation of Micro and Small Companies and Individual Entrepreneurs (Conampe).

“Small businesses were the most affected by the pandemic, because they do not have their own capital or working capital,” says Santinoni. 

“We supported ourselves with sales money, but we stopped selling, and the bills kept coming. From the claims we received, we imagine that at least two thirds of the 15.8 million micro and small companies will need credit to get out of this.

What the experts say: According to the Conampe’s President, three percent of micro and small businesses have closed during the pandemic. But this number may rise to six or seven percent in July.

So if things were looking bad now… as it turns out, they can get worse.

Fortunately, businesses can increasingly rely on lending alternatives through fintechs.

Related articles: Tech and startups from Brazil!

-ML

Mariana López
My topic darlings are startup management, edtech, and all-things pop culture. J Balvin is Latin America's best reggaetonero and I dare you to convince me otherwise.

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