Brazilian fintech Marvin has completed a US$15m Series A funding round led by US venture capital firm Canaan.
Founded in 2020, Marvin is a B2B payment platform that allows merchants to use credit card receivables as collateral for working capital or short-term loans. For the merchant, this means circumventing the anticipation fees charged by point-of-sale operators, which can be as high as 4%.
The fintech start-up will use the money raised to expand its operations, add talent and expand its service offering across Brazil.
Other Series A investors include venture capital firms Canary and Mauá Capital, both based in Brazil, as well as a number of angel investors.
Canaan’s largest investment in Latin America
Canaan’s General Partner, Brendan Dickinson, says, “The financing market for SMEs is huge and really inefficient. It builds on this anticipation by selling credit card receivables at deep discounts, which is extremely inefficient. What happened is you have an incredible effort from the central bank, who created these receivables swaps that you can leverage to create supply chain finance with these card receivables credit.
This is the biggest investment of the American company Canaan in Latin America. Dickinson explains that when investing outside the United States, they look for proposals specific to their home market situation and a team experienced in what they do.
He keeps on: “[The team at Marvin] have a thorough understanding of the market itself; a team that is building something tailor-made for Brazil. It’s not something that would work in any other market because that ecosystem doesn’t exist, but… Marvin is creating a whole new asset class to get supply chain finance that’s fundamentally cheaper for the market. business and also less risky for suppliers. This should create an incredibly virtuous circle. We see it time and time again in liquid markets; when you bring liquidity to these markets, businesses can grow very, very quickly. »
Opportunity to become the dominant market player
Dickinson predicted that as more vendors migrate to Marvin, it will become the dominant platform to use for offering financing to small and medium-sized businesses.
The fintech was advised in the funding round by offshore law firm Carey Olsen. Alistair Russell, partner at Carey Olsen, says the investment is “revealing of the rapid growth and interest in the digital payments space in Brazil.”
He adds, “Marvin has the potential to become one of the fastest growing payment solutions for retailers across the country and Carey Olsen is excited to see how the business grows over the coming months with its funding from series A passed.”