Digital Bank Neon Pagamentos Raises $300M Series C

Brazilian fintech startup Neon Pagamentos has raised $300 million in a Series C round of funding, the company announced Tuesday.

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Neon, essentially a digital bank, was founded in 2016 and offers credit cards, personal loans and investment products, among other services.

The Series C round was led by General Atlantic with participation from new investors including Vulcan Capital, PayPal Ventures, Endeavor Catalyst and funds and accounts managed by BlackRock. Existing investors Monashees and Flourish also participated, as did BBVA through Propel Venture Partners, according to a statement from the company.

Neon last raised a $92 million Series B round in November 2019.

It plans to use the new funding to expand its team and grow its user base across both its business and consumer client spaces, according to a statement. More specifically, the funding will be used for new products and features on the company’s consumer platform, new financial services, and to grow the company’s credit offerings. 

“Brazilian banking penetration is relatively high for Latin America but still lags developed market peers, with a significant under-banked population that traditional banks have generally overlooked. Neon is focused specifically on providing access to this group and bringing them into the financial world,” Neon President Jean Sigrist said in a statement. “This new financing enables us to continue our mission of serving even more clients with an increasingly robust offering.”

There are more than 9.4 million accounts on the Neon platform, according to the company. 

Illustration: Li-Anne Dias