#Brazil #São Paulo #private credit #Kanastra #F-Prime

Kanastra Secures $30 Million Series B Funding

Kanastra, a pioneering financial technology firm in Brazil, has successfully closed a $30 million Series B funding round. This funding was led by F-Prime, alongside participation from the International Finance Corporation (IFC), part of the World Bank Group, and notable existing backers including Kaszek, Valor Capital, Quona Capital, and Itaú, the largest bank in Latin America. The influx of capital will be utilized to enhance product development, increase automation within the lifecycle of private credit funds, and broaden the firm’s client base.

Understanding the Growth of Private Credit in Brazil

In recent years, private credit has emerged as a formidable force in Brazil’s finance sector. Over the past five years, private credit funds have experienced a staggering growth rate of 230%. Many businesses are shifting towards asset-backed financing that exists outside the traditional banking framework. However, the supporting infrastructure for this burgeoning market has remained disorganized, manual, and challenging to scale effectively. Kanastra's mission is to fill this gap and facilitate the growth of private credit in Brazil, which is increasingly becoming essential for various companies looking for alternative funding avenues.

Kanastra co-founder and CEO, Gustavo Mapeli, highlighted the rapid expansion of private credit in Brazil. He stated, “As the sector grows, the complexity in operational and technological demands is increasing. Kanastra is designed to simplify these complexities to enable our clients to concentrate on their core operations.” The successful fundraising, bolstered by a partnership with F-Prime and the IFC, underscores Kanastra’s effective execution and validates its operational goals.

Kanastra's Innovative Platform

Kanastra's platform is a comprehensive solution that integrates fund management, banking, and securitization services. This allows issuers, asset managers, and banks to manage their portfolios with enhanced transparency, efficiency, and scalability. In less than three years, the company has managed to support $7 billion in assets across 250 facilities, reflecting its impressive growth trajectory. Over the last year, Kanastra’s client base has grown by 150%, including collaborations with major Brazilian banks and investment firms such as Itaú, XP Investments, Patria Investments, Vinci Partners, as well as financiers like Solfácil and Creditas.

Earlier this year, Kanastra also forged a strategic partnership with Itaú that includes a commercial agreement to provide services for Latin America’s largest bank, showcasing its capability and reliability in the sector.

Market Potential and Digital Infrastructure

Rocio Wu, a Partner at F-Prime, stated the Brazilian private credit market is at a critical juncture. The market’s 230% growth over the last five years is attracting significant global investors, driven by favorable macroeconomic conditions and regulatory changes. Despite this rapid growth, the lack of digital infrastructure is a barrier to the market's full potential. Kanastra’s robust end-to-end technology platform addresses this need, setting the stage for the market's maturation in Brazil and beyond.

F-Prime’s recognition of Kanastra's execution capabilities and product development velocity solidifies its status as a leader in this sector. Kanastra is not just creating a company; it is shaping the future standards for private credit infrastructure in Latin America.

About Kanastra

Founded with a vision to enhance Brazil's financial landscape, Kanastra specializes in delivering comprehensive infrastructure solutions tailored for the country's fast-moving private credit market. The company’s platform efficiently integrates services pertaining to funds, securitization, and banking, covering all operational aspects with remarkable automation. Kanastra has raised over $51 million from global investors like F-Prime, IFC, and major Latin American financial players, signifying its pivotal role in the transformation of private credit in the region. For more information, visit Kanastra.

About F-Prime

F-Prime is a global venture capital firm focusing on technology and healthcare sectors, with significant investments in fintech, enterprise software, and pioneering technologies. It manages over $5.3 billion and boasts a diverse portfolio of more than 370 companies. With headquarters in Cambridge, MA, and offices in London and San Francisco, F-Prime remains committed to backing exceptional teams across multiple stages of growth. More details can be found at F-Prime.