Brazilian fintech Marvin closes US$15mn Series A round & More News Here

Brazilian fintech Marvin has accomplished a US$15mn Series A funding round led by the US enterprise capital agency Canaan.

Founded in 2020, Marvin is a B2B funds platform that permits retailers to make use of bank card receivables as collateral for working capital or short-term loans. For the service provider, meaning bypassing the anticipation charges charged by point-of-sale operators, which might be as excessive as 4%.

The fintech startup will use the cash raised to develop its operations, add expertise and increase its service providing all through Brazil.

Other buyers within the Series A round embody enterprise capital companies Canary and Mauá Capital, that are each based mostly in Brazil, in addition to quite a lot of angel buyers.

Canaan’s largest funding in Latin America

Canaan common associate Brendan Dickinson says: “The funding market for SMBs is massive and is really inefficient. It relies on this anticipation selling credit card receivables at steep discounts, and so that is super-inefficient. What has happened is you have an incredible effort by the central bank, who has created these receivables exchanges that you can leverage to create supply chain financing with those credit card receivables.”

It is US-based Canaan’s largest funding in Latin America. Dickinson explains that, when investing outdoors of the US, they search for propositions which might be particular to the scenario of their residence market and a group that’s skilled at what they’re doing.

He continues: “[The team at Marvin] have a deep understanding of the market in and of itself; a team that is building something tailor-made to Brazil. This is not something that would work in another market because this ecosystem doesn’t exist, but… Marvin is creating a whole new asset class to achieve supply chain financing that is fundamentally cheaper for the business and also lower-risk for the suppliers. That should create an incredibly virtuous cycle. We see this time and again in markets that are liquid; when you bring liquidity to those markets, companies can grow very, very quickly.”

Opportunity to develop into the market’s dominant participant

Dickinson predicted that as an increasing number of suppliers migrated to Marvin, it will develop into the dominant platform to make use of for providing financing to small and medium companies.

The fintech was suggested through the funding round by offshore legislation agency Carey Olsen. Alistair Russell, associate at Carey Olsen, says that the funding is “indicative of the rapid growth and interest in Brazil’s digital payments space”.

He provides: “Marvin has the potential to develop into one of the dynamic fee options for retailers throughout the nation and Carey Olsen is worked up to see how the corporate grows over the approaching months on account of its profitable Series A funding.”

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