Brazilian fintech Altis has secured $10 million through a Credit Rights Investment Fund (FIDC) to bolster its credit-as-a-service platform. Structured by Galapagos Capital, the fund will enable the company to significantly scale its vehicle financing operations. Altis empowers automotive dealerships to offer credit directly to consumers, streamlining the financing process and capturing value previously held by traditional banks.
Empowering Automotive Retailers with Embedded Finance
Altis provides a digital platform that transforms car dealerships into direct credit originators, eliminating the need for costly internal infrastructure. The company's solution handles the entire credit lifecycle, from initial risk analysis and fraud prevention to the ongoing management of receivables. This comprehensive service allows partners to focus on their core business of selling vehicles while enhancing their financial offerings.
By embedding financing at the point of sale, Altis allows partners to bypass traditional banking intermediaries for a faster consumer experience. This integration not only improves customer satisfaction but also allows dealerships to retain a larger margin on each transaction. The fintech's revenue is generated through service fees and a share in the financial gains from the credit operations.
Strategic Capital for Market Expansion
The $10 million injection is instrumental for accelerating Altis's expansion within Brazil's vast automotive financing market. The capital is earmarked to increase the company's capacity to meet surging demand for credit from its growing network of partners. This funding provides the necessary firepower to scale its loan book and solidify its market presence in a competitive sector.
With a network of over 180 accredited dealerships, Altis has already originated more than $1.8 million in loans. The company, founded by veterans from Mercado Livre, Kavak, and Creditas, has ambitious growth targets. It projects originating $54.5 million in credit over the next two years, leveraging the new FIDC to fuel this significant expansion.
Navigating a Complex Market Landscape
According to co-founder Luiz Bettega, the market has shown resilience despite high interest rates, with consumer behavior adapting accordingly. There is a clear shift towards more affordable used vehicles, larger down payments, and shorter loan terms of 36 to 48 months. This adjustment has helped maintain market activity while mitigating overall risk for lenders and borrowers.
While delinquency rates have seen a controlled increase, Altis has proactively managed this by refining its proprietary credit models. The company has tightened its criteria by requiring higher down payments and utilizing advanced behavioral data and anti-fraud technology. This disciplined approach ensures the long-term health of its credit portfolio for all partners involved in the ecosystem.
A Vision for a Digitized Automotive Credit Sector
A key trend is the increasing professionalization of dealerships, which are adopting digital platforms to streamline credit approvals and operations. Altis positions itself as a crucial partner in this digital transformation, offering not just capital but also technology and credit intelligence. The company aims to help its partners enhance profitability on every contract they successfully close.
Looking ahead, the outlook for automotive financing is positive as interest rates are expected to gradually decline. Bettega anticipates this will stimulate demand for higher-value vehicles and allow for slightly longer financing terms. Altis plans to expand its base of accredited partners, focusing on independent and smaller dealership groups to drive its next phase of growth.
This $10 million FIDC marks a pivotal moment for Altis, validating its innovative credit-as-a-service model and providing the resources for substantial growth. By equipping automotive retailers with the tools to control their own financing operations, the company acts as a strategic partner. Led by a seasoned team, Altis is well-positioned to reshape Brazil's automotive credit landscape.