QI Tech Gets Closer To Making Financial Services Truly Digital With $50 mln Investment

QI Tech, a Fintech startup based in São Paulo, has raised $50 million in funding to expand its fully automated Lending-as-a-Service platform.

The Series A funding round, one of the largest for any startup in Latin America, was led by GIC, Singapore’s sovereign wealth fund. The funding will be used by QI Tech to expand its product offering and accelerate its inorganic growth efforts, as well as to quadruple its team, which at this time consists of 48 people. Pedro Mac Dowell, CEO of QI Tech, referred to the relevance of the round by stating:

“The Brazilian largest banks are losing market share in credit to other companies such as retailers, service apps and national operators. QI Tech is the infrastructure that allows this change, in the asset-light model, it can be compared to the Uber of banks, since it is already the largest credit issuer in Latin America without carrying the loans in its balance sheet. The arrival of the GIC reinforces our commitment to always be looking ahead of financial services, in addition to maintaining our independence.”

Founded in 2018, QI Tech is the first Direct Credit Company approved by the Brazilian Central Bank to operate in the country. However, Instead of offering direct credit to final borrowers, it provides the infrastructure for other organizations to do so. By providing a 100% digital solution, the startup has been able to grow its user base to more than 100 clients while handling over $1 billion in credit transactions. Marcelo Bentivoglio, Partner at QI Tech, said in this regard:

“We offer all Lending-as-a-Service verticals, such as student finance, direct consumer credit, BNPL Buy now, Pay later, auto loans, home equity, working capital lines and secured credit operations. Thereby, any fintech, traditional company or bank can use QI Tech’s APIs to offer these verticals to their end customers”

With more than 60% of credit unions and 49% of banks considering that establishing partnerships with fintech companies is important, startups like QI Tech have received increasing attention from investors. By providing these institutions with the necessary infrastructure to easily improve their internal credit process, QI tech is aiming to become a major leader in the redesigning of legacy credit systems, creating more opportunities for consumers.

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