Brazil fintech startup Zoop secures $11.4 million funding to accelerate growth
Movile, one of Latin America’s investors and growth accelerators for technology companies, has announced the company led a new investment of R$ 60 million in Zoop, a startup in financial services for the B2B market.
This is Movile’s third investment in the company since early 2018. Zoop will use the new round of funding to accelerate the growth of the group’s fintech vertical by speeding the rollout of new digital payments, banking and credit for its customers within Zoop’s secure and certified framework.
Zoop operates in mobile payments, banking as a service (BaaS) and credit. Its platform and products combine technology and regulatory compliance, allowing any company — be it a startup, a marketplace, or even a large enterprise — to create and offer its own branded financial services (white label) in a simple, efficient and secure way.
Zoop’s technology platform is the behind-the-scenes infrastructure for a growing number of new fintech offerings across Latin America today.
Patrick Hruby, CEO, Movile: "There is an immense opportunity in the years ahead to improve financial services and enable broader access for businesses of all sizes and we want to ensure we are at the forefront of the transformation. In particular, there is massive growth potential to serve the needs of small and medium-sized companies. This additional investment will further strengthen and expand the services offered by Zoop, enabling its partners to offer more complete and integrated financial services.”
Fabiano Cruz, CEO and co-founder of Zoop, said the company grew 140 percent in TPV (total payment volume) compared to the previous year, in addition to attracting more than 40 new partners during the pandemic. Zoop recently launched several innovative products, such as the Banking as a Service (or BaaS) vertical, which completes a wider portfolio of products and services for payments and credit.
Fabiano Cruz, CEO and co-founder, Zoop: "We believe that any company, in any sector, will be able to add new revenue lines by offering digital accounts, prepaid cards, withdrawals, transfers, bill payments, instant payments (PIX) and a series of other products and services available on the white-label technology platform from Zoop. We want our business partners to design, incorporate and operate financial products under their own brands, and we enable them to create innovative financial services for their customer base,” said Cruz.
Founded in 2013, Zoop has more than 500 partners on its platform. The company grew four times the total volume of 2018 last year, and it forecasts that it will process 20 billion transactions on the Zoop platform by the end of 2020.
Fabiano Cruz: “Zoop is at the heart of the financial services transformation and has enabled the emergence of thousands of new businesses. With Movile's new investment, we will continue to exponentially grow the products and services available on our “fintech as a service” B2B platform and offer partners the best technologies to manage the complex regulatory framework.”
Movile is focused on three main fintech offerings specifically for small and medium-sized companies: payments, banking and credit. Zoop plays a fundamental role within this focus, as it acts as the technology platform to enable payments and financial services that allow retail companies, online marketplaces and B2B businesses to become fintech companies.
Responsible for more than a third of all capital invested in Brazilian startups last year, fintech companies raised about $1 billion during 2019, a volume almost three times higher than in 2018, per LAVCA. Since 2015, startups that innovate in the financial sector have received US$ 8 billion in investments, according to a recent survey by KoreFusion.
In the last year, Movile has invested R$ 100 million in the fintech vertical, which is almost double the R$ 55 million invested in 2018.