Brazilian accelerator Circle invests R$2 million in fintech—a first in the country
Circle, a Brazilian startup accelerator focused on marketing technology, announced a significant investment in MKT Bank. Targeting marketing and communication firms and professional freelancers, MKT Bank is the first to target this sector of the banking market specifically. Their technology is designed to improve cash flows and ease accounts receivable friction for their clients.
Always in search of innovative solutions that unite marketing and technology Circle, a Brazilian accelerator (of the same name) primarily focused on marketing technology (martech), recently announced a novelty in their expanding ecosystem: an investment of R$2 million in fintech startup MKT Bank.
Launched by a hub of international investors focused on martechs, the startup is the only fintech focused exclusively on the communication and marketing market, through a platform for advance transactions of receivables with digital account and credit products.
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Easing accounts receivable friction
The difficulties of anticipating receivables is a major problem in the marketing segment. When making a sale, companies can expect to wait up to 120 days from the date of invoicing to receive payment.
The objective of MKT Bank, which operates with a business model for B2B and B2C audiences, is to contribute exclusively to the cash flow of these stakeholders—agencies, suppliers, employees and freelancers in advertising, marketing and events—so that the whole ecosystem works in a healthy and sustainable way.
Aiming to serve these small and medium suppliers in the communications and marketing sector, with much less bureaucracy than that found in conventional banks, MKT Bank expects to close 2021 with R$30 million in transactions and offer its unprecedented benefits to 10 thousand clients.
“We have thought of a digital account to exclusively meet the needs of communication and marketing firms and professionals, and to facilitate banking operations between their clients. We are the only fintech that speaks their language; we look at each contract, job by job, with a friendly system focused on the work format and the pains of this market. And Circle will add even more to our expertise, because it is the first martech accelerator to look at all companies thinking about technology, creating content for technology”, explains Alessandro Lopes, CEO of MKT Bank.
Fintech helps with the financial and strategic planning of users from all over the world, with fast, clear and dynamic communications. It’s a reflection of the exact market MKT is going after.
This new “bank” offers individual digital accounts, in the name of the company or the individual, and makes it possible to perform everything from banking services, such as payments and transfers between fintech accounts, to mobile phone recharges.
They also provide a prepaid international Visa credit card, and allow for withdrawals on the Banco24Horas and Plus networks.
Without the bureaucracy of traditional banks, opening a digital account at MKT Bank is quite simple. For people and companies, they simply need to access the online platform and register. And while the user must still wait for the arrival of a physical card, as is the case with traditional banks, they can begin to benefit from the online services provided from day one.
For the anticipation of receivables, the company can use the online platform and answers basic questions to make the registration of interest. After approval of the registration and account, the anticipated funds will be released.
Brazilian fintech is booming
Fintechs are amongst the fastest growing startups in Brazil. According to the second edition of the Distrito Fintech Report, a survey conducted by Distrito—an open innovation company that works with startups—Brazil already has 742 such startups. Throughout 2019, the sector attracted US$910 million in contributions, accounting for 35% of the total venture capital investments made in Brazil for the period. Additionally, a survey by Infinicept and AZ Payments Group estimates that the sector should move US$15 billion by 2025.
The current communication market scenario is also very optimistic. Investments in advertising in Brazil reached R$17.5 billion in 2019, according to Cenp (Executive Council of Standard Rules), an entity that gathers the main advertisers, communication vehicles and advertising agencies in the country.
(Featured image by Fauxels via Pexels)
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First published in PROMOVIEW, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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