iugu Announces R$71.25 Million Contribution in New FIDC Series

Bradesco BBI is leading a deal in which iugu, a cash management and payment automation platform, contributes R$71.25 million to a new series of senior installments in FIDC iugu. This move was previewed by iugu CEO Renato Fairbanks during an interview with Fintechs Brazil in October. The executive also revealed plans to close a new investment and explore other opportunities for growth.

Funding Targets

iugu intends to direct the fund towards the credit card receivables advance process. At present, FIDC iugu possesses assets surpassing R$180 million to advance its clients’ business plans. Bradesco BBI SA served as the lead arranger for this transaction, with BEM DTVM as the administrator, Banco Bradesco SA as the custodian of FIDC, H2 Kapital SA as structurer and administrator of FIDC, and Trench Rossi as legal advisor.

Growth and Future Plans

Since its founding in 2012, iugu has experienced significant operational growth. In 2023, the company anticipates a growth rate of 80% over the previous year. André Luiz Gonçalves, iugu’s CFO, highlighted the importance of the FIDC capitalisation stating that it represents a crucial step in iugu’s strategy to access different sources of capital competitively, ensuring a source of working capital for their customers.

Previous Financing

This is the second FIDC financing for iugu. The fintech previously raised R$1.00 million with the first FIDC iugu series, also facilitated by Bradesco BBI, to diversify its products and services. The initial series exceeded the R$1 billion mark in predicted transaction volume.

In 2020, iugu obtained R$ 120 million in investments from the Goldman Sachs Group and received a license from the Central Bank to operate in Brazil as a regulated Payment Institution. The executive concluded by stating that the second series of their FIDC will allow them to continue tracking their clients’ growth and providing them with a competitive and predictable funding source.