Brazilian Fintech Startup WEEL Secures US$6M Investment

Brazilian cash flow management platform, WEEL, has successfully raised US$6 million in a funding round involving Monashees, Mindset Ventures, and Banco Votorantim.

WEEL’s Fintech Innovation

Founded in 2014 under the name WorkCapital, WEEL has developed a unique model that relies on artificial intelligence (AI) for risk analysis. The platform harnesses Big Data to enhance investment outcome predictions and credit profiling.

WEEL’s online platform simplifies the lending process for potential creditors. It allows users to evaluate the lending process, check fees and interest rates, and gain approval without the typical banking red tape.

A Specialized Big Data Approach

WEEL’s standout feature is its effective use of Big Data analysis. Its AI algorithm evaluates assets so efficiently that in 2017, it managed to maintain a default rate below 1 percent. Its technology continued to improve, resulting in a delinquency rate of only 0.4 percent in mid-2018. This is a significant achievement, considering that América Economía reported a 42 percent default rate among Brazilian adults in 2018.

Advantages of Investing in WEEL

The investment will give Banco Votorantim access to WEEL’s efficient algorithm. This will enable the bank to offer better rates to small and medium-sized entrepreneurs. There is also a possibility that Banco Votorantim will replace its duplicate monitoring system with the WEEL platform, enhancing its performance and scalability.

Simcha Neumark, Founder & CEO of WEEL, has stated that the investment will significantly boost the development of the company’s data science sector, thereby accelerating the startup’s overall growth rate.