Conta Simples, a leading expense management and corporate card company in Brazil, has successfully raised a significant amount of $41.5 million in its Series B funding round. This substantial investment, equivalent to more than R$200 million, was led by Base10 Partners, with the participation of Conta’s Series A investors, including Valor Capital, Jam Fund, Y Combinator, Big Bets, Broadhaven, and DOMO. As part of this funding, Base10 managing partner TJ Nahigian has also joined Conta’s board, signifying a pivotal development for the company.
Key Takeaway
Conta Simples, a prominent expense management and corporate card company in Brazil, has secured a substantial $41.5 million in its Series B funding round. This funding is set to fuel the company’s growth, enabling it to enhance its technological capabilities, expand its user base, and target larger enterprises, thereby solidifying its position in the market.
The Company’s Growth and Achievements
According to company executives Rodrigo Tognini, CEO, and Taeli Klaumann, CFO, 2023 marked a remarkable milestone for Conta Simples. The company achieved its “best year” by attaining breakeven status and securing a license from the Brazilian Central Bank to operate as a Direct Credit Society. This significant achievement empowers the financial services company to expand its offerings to include credit, digital accounts, and payments, thereby enhancing its overall service portfolio.
Operational Milestones and User Base
Conta Simples has garnered a substantial user base, with 30,000 active users and the issuance of 500,000 physical and digital corporate credit cards, resulting in a total payment volume of R$18 billion, approximately $3 billion. Tognini highlighted the company’s impressive revenue growth, nearly tripling year over year, and its transition from a negative margin to breakeven, which played a pivotal role in attracting the current investors for the Series B round.
Strategic Expansion and Technological Advancements
Moreover, the company’s advanced expense control technology offers a streamlined process and customized monitoring, enhancing its competitive edge in the market. In a strategic move in 2022, Conta Simples acquired the online ads startup Hackr Ads, following a successful R$121 million Series A funding. This acquisition enabled Hackr Ads’ customers to leverage Conta’s services, while also providing Conta with the capability to offer its customers a comprehensive solution for managing advertising campaigns.
Future Plans and Utilization of Funds
Looking ahead, Conta Simples plans to utilize the new funding to support its expansion initiatives. This includes scaling its team by opening and filling approximately 100 new roles in 2024. Additionally, the company aims to target larger customers, expanding its reach beyond small businesses to cater to mid-level and small enterprises. Taeli Klaumann emphasized the immense potential in serving larger companies, both in Brazil and globally, where there is a significant demand for efficient expense management solutions.
