TruePay raises $32m in one of the largest Series A rounds in Brazil
São Paulo-based TruePay, a start-up focused on providing SME retailers with access to credit, has raised $32 million in Series A funding led by Addition, one of the largest ever held in Brazil.
TruePay founders Pedro Oliveira and Luis Eduardo Cascão
Founded in December 2020, TruePay claims to have built up a merchant base “in the thousands”. It plans to grow “tenfold” in the next year.
It was set up by former VCs, Pedro Oliveira and Luis Eduardo Cascão. They left Kaszek and DNA Capital, respectively.
The funds will be used to improve it solution, increase capacity and expand the team. It currently has 50 staff.
Cascão, now COO of TruePay, says: “The largest portion of this round will be used to further attract and develop talent in Brazil and elsewhere.”
TruePay provides cost-free access to credit card receivables that can be used by retailers to purchase from suppliers. The company is building a B2B BNPL network.
Retailers use receivables as collateral to guarantee payment to suppliers and access better payment conditions and more working capital. In turn, suppliers’ exposure to default risk is reduced.
It is Addition’s first time leading a Series A in Latin America. It was set up by former Tiger Global Management investor, Lee Fixel, in mid-2020.
