Brazil-based digital banking platform developer Cora brought in $116m yesterday through a series B round that included gaming and internet group Tencent.
Investment firm Greenoaks Capital led the round, which also featured Ribbit Capital, Kaszek, QED Investors and Tiger Global Management.
Founded in 2019, Cora provides digital accounts for small and medium-sized businesses, ostensibly designed to reduce the red tape and high fees typical of traditional banks by providing a streamlined service.
The company got its licence from Brazil’s central bank in 2020 and launched its main checking account product in October the same year. It is understood to be beta testing a corporate credit card product.
The funding will go towards growing Cora’s business, in particular its technology, credit products and operations, with a view to surpassing 380,000 customers by the end of this year.
Igor Senra, Cora’s co-founder and chief executive said: “We arrived to free the small businesses of the big banks and their bureaucracies. We tackle all the paperwork, delay and lack of support from financial institutions by offering a simple and affordable product.”
The round was originally slated for 2022 but was brought forward on the initiative of Greenoaks and other investors, which were more interested in building the business rather than spend time fundraising, according to Senra.
Ribbit Capital led Cora’s $26.7m series A round in April 2021, investing alongside Kaszek and Greenoaks. It had received $10m from Kaszek and Ribbit Capital in a December 2019 deal it claims was the largest seed round ever in Latin America at the time.
