Brazilian fintech Velotax has raised BRL125mn ($23.3mn) in a Series A funding round backed by international investors QED Investors, Valor Capital and Picus Capital, the company said in a press release.
The round, concluded nine months ago but only now disclosed, aims to support the firm’s expansion into broader financial services.
Known for simplifying income tax returns, Velotax plans to evolve into a full financial ecosystem offering personal and payroll loans and tax refund advances.
The company has also appointed executives to lead credit, commercial, collections, payroll loans and data analysis areas.
Velotax has developed its own artificial intelligence system to assess creditworthiness using hundreds of data points. “AI allows us to see beyond the traditional score. We analyse hundreds of variables to offer responsible credit, with proposals that match the real ability to pay,” said co-founder Victor Savioli.
Backed by investors behind regional fintechs such as Nubank and Creditas, Velotax expects to expand its user base through new products, including insurance and financial education, as it seeks to compete in Brazil’s BRL4 trillion credit market.
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