Close to a pre-IPO private round, fintech Creditas has already started the process for listing on a stock exchange in the U.S. The company estimates in talks a debut valuation between $7 billion and $10 billion, sources say. There is a possibility that the offer will occur at the end of the second quarter – but the most likely scenario is the listing in the second half, sources say.
Investment banks made their presentations to the fintech in the first two weeks of January and are eagerly awaiting the call securing a place in the bank syndicate this week. “It is the most disputed deal at the moment. The Nubank of 2022,” says an investment banker. That’s because, having the scale of the digital bank in mind, this is expected to be the largest initial offering by a Brazilian company in the year — with a weak economy and elections, banks expect greater volumes in secondary offerings.
In the highest range, the price expectation includes a multiple of 12 times the enterprise value (sum of equity and debt) divided by the projected revenue for 2023 (EV/revenue). The company is still to close the volume of funding, but has indicated something between $500 million and $1 billion.
Creditas business is to grant credit with property and car or payroll loans as collateral. The creation of the company is similar to what moved Nubank: a foreigner in Brazil, impressed by the high local interest rates, with the restriction of access to credit and with a desire (or without much notion of reality, as they say) to face incumbents. Sérgio Furio, born in Spain, created BankFacil, later renamed as Creditas, a year before the founding of the startup that opted for the credit card.
Creditas, now Brazil’s largest secured loans fintech, has funds such as Softbank, Kaszek, QED and Amadeus in its shareholder base. The pace of growth has been intense, which makes the company take advantage of the liquidity of the funds – its fifth round, when it raised $225 million, was closed just over a month ago.
Creditas still operates at a loss, according to the most recent earnings reports. In the first nine months of last year, net loss was R$215.8 million as it focuses on growth – in the period, total loan portfolio, new origination and revenue more than doubled in year-over-year comparison.
Source: Valor international