Open Co merges with BizCapital and attacks credit for SMEs

With the operation, with an undisclosed value, the fintech expands its focus, absorbing a base of over one million CNP

Open Co is no stranger to mergers, as it was born from the synergy between startups Geru AND rebel. Now, the fintech has announced a new one, involving BizCapital, which offers loans to small and medium-sized businesses

With the deal, of undisclosed value, the open co is expanding its focus on SMEs, absorbing a base of over one million registered CNPJs, as well as acquiring the SME credit platform, a market that moves over R$900 billion annually in Brazil.

Since the start of operations, open co AND biz, together, they have granted more than R$ 5 billion in loans. Over the years, more than 10 million people and businesses have used the company’s platform. People and companies from all regions of Brazil with special needs, but a common expectation: the search for simpler and fairer credit solutions.

“By adding this universe to that of individuals, of BRL 1.4 trillion, the open co has in its hands the challenge and the opportunity to “cover” the entire country with simpler, more accessible and intelligent credit solutions”, highlighted fintech, in a press release.

With the merger, the new leadership of the company will be in the hands of the founding quartet of both companies, with Sandro Reiss occupying the chairmanship of the CEO. Rafael Pereira will be the COO, while Francisco Ferreira and Cristiano Rocha, founders of BizCapitalthey will be CTO and CRO respectively.

The changes will also result in a different structure for different target audiences. A open co remains the group’s corporate brand, opening a dialogue with shareholders, investors, the press and market analysts. The consumer-facing operation will focus on the brand Geruwhile the SME operation, in Biz.

“A Geru already offers personal loans, Pix in installments, BNPL and insurance, while BizCapital offers working capital, PJ digital account, MaisBiz (short-term microcredit) and CaaS (Credit as a Service). With the merger, the brands expand the portfolio of solutions for their clients, also providing digital accounts and CaaS for consumers, BNPL and insurance for SMEs,” says Francisco Ferreira.

superfintech

According to Francis, the biz comes as a very complementary business to what is offered by open co. “We use technology and intelligence, both human and artificial, to stay ahead of our customers and partners, positively transforming the lending experience for SMEs in Brazil. With due particularities, what we do is very similar to what Geru does for the Brazilian consumer,” the CTO points out.

Joining forces with the biz comes on the heels of other movements that the open co already done to increase its presence on the market. At the end of last year, bought the BoletoFlexa BNPL startup from Santa Catarina that allows online purchases to be paid in installments at partner stores.

Sponsored by major investors such as IFC, monashees, Chromo, Raiz Investimentos, LTS AND soft bankamong others, Open Co was born as a superfintech, for the birth of the union of two large startups in the sector (Geru AND rebel). This has caused the company to garner bountiful rounds in the high venture capital market.

In December 2021, the startup received a check for BRL 600 million in a round led by the giant Softbanks.

The money would be the fuel for the company to expand its base (at the time) of more than 100,000 active customers and 2.3 billion reais of loans granted. According to the information released by the company at the end of 2022, it seems that the amount has not increased much: the total volume of loans granted by the company was R$3 billion.

A detail: nine months before the super round with Masayoshi Son’s fund, the fintech had already raised 150 million reais from the fund International Finance Corporation (IDC)the private sector investment arm of the World Bank.

Even so, neither open co escaped layoffs, as have other trendy fintechs such as How much AND PagSeguro. In February, the company laid off about 15% of its employees, or about 45 people. At present, fintech has declined to comment on the matter.

Source: Terra

Rose

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