Growth-equity firm General Atlantic has led a $300 million funding round for Brazilian financial technology company Neon Pagamentos SA to help foster the company’s continued growth.

The latest funding comes not long after the firm helped back the company in a roughly $92 million Series B financing round in 2019 and brings total capital raised to more than $400 million. Neon raised a $22 million Series A in 2018.

General Atlantic led the funding round with participation from BlackRock, as well as Vulcan Capital, PayPal Ventures, and Endeavor Catalyst, in addition to former investors Monashees and Flourish Ventures. BBVA also participated via existing shareholder Propel Venture Partners. The investment will reportedly be split between two tranches of $150 million each.

Founded in 2016, Neon explained it launched with a digital account and has since expanded its product suite to include investment products, credit cards, and personal loans, among other new offerings and features. The company noted it expanded its initial focus on consumer clients to also serve small businesses, which was accelerated by its acquisition of MEI Fácil last year. Neon recently acquired the Brazilian brokerage platform, Magliano Invest, in July 2020.

Neon added that the Series C is the third funding round to date. It raised a $22 million Series A in May 2018 from Propel Venture Partners, Monashees, Quona Capital, and Omidyar Network, later spun-off as Flourish Ventures, followed by its November 2019 Series B financing of $92 million co-led by General Atlantic and Banco Votorantim, Neon’s banking partner.

Source: Wall Street Journal

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