Tech Insights | Edition #1 – Creditas: Reshaping Brazil’s Home Equity and Car Title Loan Markets
This is the first edition of our Tech Insights report series, in which we take an in-depth look at Creditas’ business model and provide feedback from a meeting with the company’s CFO.
Por Itaú BBA
In this report, we take a deep dive on Creditas: A unicorn contender in the fintech space. The Company started by generating leads for traditional banks and evolved into a digital platform offering home equity and car title loans.
The company recently received an SCD license from the Central Bank to operate without the intermediation of banks and got a USD 231 million capital injection from SoftBank, at a valuation of USD 750 million. Creditas intends to be the lowest-cost provider of home equity and car title loans, given the expected increase in competition over the next three to five years.
Despite the higher CAC and costly funding versus large banks, the company believes it has the skills and the technology to develop the best and fastest credit approval process. Important to note that as of September 2021 Creditas is worth USD 1.75bn.