Listo, a fintech specializing in Brazil's automotive sector, has successfully concluded a $191.5 Million fundraising through a Credit Rights Investment Fund (FIDC). The operation, structured by Itaú BBA and UBS BB, attracted significant interest from institutional investors. These new resources are earmarked to expand the company's credit portfolio and strengthen its overall market operations.
A Significant Capital Injection
The fundraising consists of $133 million in new capital, with the remaining $57 million coming from existing investors who chose to extend their terms. CEO and founder Olavo Cabral Netto highlighted the strong demand for the offering, which surpassed the company's historical issuances. This success reflects deep market confidence in Listo's operational model and high-quality credit receivables.
Historically, the company's fund issuances ranged between $57 million and $76 million, making this $191.5 Million operation a major milestone. Netto noted that the company has maintained a flawless track record with no default events across all its funds. This history of reliability was a key factor in attracting such robust investor participation.
Fueling Ambitious Growth
With this new capital, Listo is poised for substantial growth, projecting it will double in size within the next 18 to 24 months. The fintech currently manages a credit portfolio of $191.5 Million and processes approximately $1.91 billion in digital transactions annually. Its platform serves a diverse client base of over 120,000 businesses within the automotive industry.
The company's client profile spans from small auto parts shops and used car dealerships to large, multi-brand concessionaire groups. Listo has been making significant inroads with larger enterprises, now serving over 100 major dealership groups. This strategic focus on larger clients is complemented by new B2B products connecting automotive industries to retailers.
A Vertically Integrated Strategy
A key differentiator for Listo is its strategic decision to vertically integrate its technological and regulatory infrastructure. In contrast to many competitors that rely on third-party providers, Listo has built its own comprehensive financial ecosystem. This involved securing its own licenses as a Payment Institution (acquirer) and a Direct Credit Society (SCD).
This verticalization is supported by a proprietary, cloud-native card processing platform and direct participation in Brazil's instant payment system, Pix. According to Netto, this self-sufficient model provides greater efficiency, agility, and ensures full compliance with evolving Central Bank regulations. It effectively creates a bespoke "Banking as a Service" platform tailored to the automotive sector.
Future Outlook and Market Position
Looking ahead, Listo is exploring further avenues for expansion beyond its recent debt financing success. The company is considering its first-ever equity funding round, with discussions reportedly underway with various investment funds. This potential capital injection would be aimed at accelerating growth rather than simply meeting regulatory capital requirements.
This $191.5 Million fundraising marks a pivotal moment for Listo, providing the necessary fuel to accelerate its expansion and solidify its leadership in the automotive fintech space. The company's proven vertically integrated model, combined with strong investor backing, positions it to capitalize on growing market demand. As Listo continues to innovate, it is well-equipped to drive the ongoing digital transformation of Brazil's automotive sector.