São Paulo, Brazil, January 28, 2019 – Brazilian neobank Jeitto announced today that it has closed a new round of funding from Accion Venture Lab, the seed-stage investment initiative of global nonprofit Accion. The funds will help Jeitto to grow its financial service offerings, enhance user experience, and ultimately reach more financially underserved consumers throughout the country.
Founded in 2014, Jeitto is a Brazilian mobile-first neobank that provides credit, payment, and other financial services to underserved consumers. In Brazil, less than 5% of the country has a mobile money account despite the high prevalence of smartphone use. Jeitto’s app leverages usability and allows consumers to enhance the way they manage their day-to-day finances, including paying utilities, transportation, and mobile top-ups.
“At Jeitto, we are committed to the purpose of bringing, in an innovative way, credit-based financial services to a segment underserved by the market,” said Fernando Silva, co-founder of Jeitto. The founders and CEO emphasize the fact that Accion Venture Lab is a strategic investor with extensive global investment experience in the industry in which Jeitto operates. “We believe that Accion’s experience and support will significantly contribute to the rapid growth of Jeitto’s app consumer utilization,” said Adriano Duarte, CEO of Jeitto.
“Nearly a third of Brazilians lack a bank account and countless more rely on low-quality, expensive products. By providing affordable, convenient financial services, Jeitto is helping more people benefit from the formal financial sector,” said Michael Schlein, President and CEO of Accion. “Jeitto’s strong management team, innovative neobank design, and focus on consumer experience position it well to have a scalable impact across Brazil,” said Matthieu Albrieux, Investment Officer for Latin America, Accion Venture Lab.
Jeitto is designed to give low- and emerging-middle income customers access to financial products that are otherwise not available to them. By leveraging alternative data and a sophisticated underwriting algorithm, Jeitto offers transparent pricing and a simple interface for its more than 30,000 consumers. The company also helps consumers with little financial experience to carefully build their financial confidence by rewarding positive behavior and gradually introducing them to a wider range of financial services.
Jeitto is a digital wallet for purchases and payments through a credit limit made available in the app in addition to the prepayment function. The Fintech is transforming people’s financial experience, not only for the convenience of its app, but mainly for providing a credit line to a portion of the population that is underserved by the traditional financial market.
In Jeitto’s app, customers can pay e-commerce purchases, utilities, mobile top up, transport, gift cards, online entertainment and other services available on the app.
The business model is based on innovative fraud prevention and credit risk technology. The expertise that Jeitto has developed in artificial intelligence based on alternative data allows the Fintech to predict, in a disruptive way, the payment behavior of its customers and consequently provide a credit limit with risk under control. By providing the unsecured credit, Jeitto helps the cash flow management of those who have limited access to financial services.
For further information, visit: https://www.jeitto.com.br
About Accion Venture Lab
Accion Venture Lab is a seed-stage investment initiative focused on fintech for the underserved. Venture Lab invests capital in and provides support to innovative fintech startups that improve access, quality, and affordability of financial services for the underserved at scale. Since launching in 2012, Venture Lab has invested in 40 early-stage startups that operate in over 30 countries worldwide. Venture Lab is a part of Accion, a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. Accion catalyzes financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of – or poorly served by – the financial sector. For more than 50 years, Accion has helped tens of millions of people through our work with more than 110 partners in 50 countries. For further information, visit https://www.accion.org/venturelab.