Iugu, a Brazil-based finance automation and payment platform for small companies, has raised R$120m ($22.5m) in its series A round from a consortium including US-based investment bank Goldman Sachs.
Venture capital firm Indicator Capital and Fábio Póvoa, co-founder of local internet group Movile and angel investor through Smart Money Ventures, joined the A round.
Indicator Capital previously invested R$5m in 2012 and 2014, according to local trade body Lavca. Iugu was granted a payment institution license in August by the Brazilian Central Bank.
Cristiano Camargo, director of the merchant banking division at Goldman Sachs in Brazil, said: “What initially drew us to iugu was its impressive payment platform.
“But as we moved forward in our understanding of its value proposition, we realized that the company’s success is driven by its core for solving problems for customers, rather than simply acting as a payment methods provider.”
Goldman Sachs has previously also backed Latin American fintechs Ualá (venture), Konfío (debt), Credijusto (venture and debt), and Nubank (debt), while peer JP Morgan backed Brazil-based FitBank in July.
