Brazil-based digital bank operator Neon Pagamentos confirmed today it has raised R$400m ($95.3m) yesterday in a series B round co-led by financial services firm Banco Vorantim and growth equity firm General Atlantic.
The round included Propel Venture Partners, financial services firm BBVA’s venture capital vehicle, as well as Monashees, Quona Capital, Omidyar Network, Tera and Mabi. Details of the amount and Banco Vorantim and General Atlantic’s participation were first reported by Inovação.
Founded in 2016, Neon operates a mobile-focused digital banking service that offers a debit card, digital account and savings tools. It has almost 2 million account holders but has run into difficulties with its partnership model.
The company’s banking partner, Banco Neon, was liquidated by Brazil’s central bank due to regulatory breaches in May 2018, and Neon itself was forbidden to sign up new accounts until Banco Vorantim stepped in as a new partner shortly afterwards.
Neon intends to channel the cash into tripling its user base by the end of 2020, and founder and chief executive Pedro Conrade said it is prioritising the ongoing expansion of its headcount, which has increased from about 200 to 600 so far this year.
Funding and new recruits will also support the introduction of additional financial services products to expand Neon’s offering in the coming months.
Propel Venture Partners, financial services firm BBVA’s venture capital vehicle, joined Monashees, Quona Capital, Omidyar Network, Tera and Yellow Ventures to provide $22m in series A funding for the company in May 2018, shortly before the liquidation incident.
This article was amended on November 21 to reflect a press release by Neon.
