BNPL TruePay start-up secures $ 32 million in funding

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Brazilian startup buy now, pay later (BNPL) TruePay announced on Tuesday, November 23 that it recently closed a Series A funding round that grossed $ 32 million, which will be widely used to hire more employees for the young company, according to a company Press release.

Addition spearheaded TruePay’s latest fundraising effort, which comes three months after the company raised $ 8.5 million in a funding round co-led by Kaszek and Monashees that also included participation from ONEVC and of Global Founders Capital.

TruePay says it has a “thousands” customer base five months after launch, has grown 100 to 200% per month, and expects “ten to fifteen times” growth in 2022, according to a TechCrunch report.

“We are very happy to have the trust of some of the best investors in the world as well as the super talented people that we have been able to bring on board. An increase like this is a symbol of the impact TruePay will have in the market by providing free credit to millions of merchants in Brazil,” noted Pedro Oliveira, CEO and co-founder of TruePay, in the announcement.

The company is trying to turn retailers’ credit card receivables into purchasing power, which company executives say will secure payment to the supplier.

Brazilian retailers face long average receipt times and short payment terms, said co-founder Luis Eduardo Cascão. “These companies carry the country’s economy on their shoulders, but have no source of equitable minimum cost capital to close this gap,” he told TechCrunch. “As a result, they end up resorting to other solutions, such as factoring high-rate receivables from payment processing companies and seeking abusive interest-rate credit from banks.

“The suppliers of these retailers, in turn, often end up having to choose between not selling to them or giving them credit, exposing themselves to the risk of default, which they are usually not equipped to do. results in a negative credit cycle, ”he continued. “TruePay was created precisely to break this negative spiral and turn the relationship into a flywheel. “

Related news: Merchant Education Key to Buy Now, Pay Later Adoption in UK

Gary Rohloff, co-founder and CEO of Laybuy, said one of the reasons BNPL has exploded is that most young people don’t want credit cards, and installment payments represent “an opportunity for them to ‘buy the things they want or need without the requirement of a credit card and a higher interest rate.

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