TLDR:
• PayHop, a fintech startup based in Brazil, has secured new funding from TOTVS’s corporate venture capital arm, CV iDEXO. This marks PayHop’s second investment round and aims to propel the company into the escrow duplicates market.
• The exact amount raised in the funding round remains undisclosed, but PayHop is already valued at over R$50 million. The company’s ambitious growth plans include reaching breakeven in 2024, connecting with one million retailers, and achieving R$1 billion in transaction volume by 2025.
• PayHop’s collaboration with TOTVS involves integrating with the latter’s management systems to enhance credit facilitation across production chains using receivables data that flows through TOTVS’s software. The partnership aims to significantly enhance PayHop’s operational capabilities.
PayHop, an innovative fintech startup based in Brazil, has secured new funding from TOTVS’s corporate venture capital arm, CV iDEXO. This marks PayHop’s second investment round and is set to propel the company into the escrow duplicates market. While the exact amount raised remains undisclosed, PayHop is already valued at over R$50 million.
The first funding round of R$11.5 million, led by Serasa Experian’s CVC, facilitated PayHop’s entry into the credit receivables market. Now, with the support of TOTVS and other investors, PayHop aims to diversify its offerings further. The company’s founders, Eduardo Rossi and Arthur Fontana, emphasize the strategic nature of their CVC partnerships, highlighting the successful distribution channel acceleration experienced with Serasa.
Through its collaboration with TOTVS, PayHop will integrate with the latter’s management systems, enhancing credit facilitation across production chains using receivables data that also flows through TOTVS’s software. This synergy is anticipated to significantly bolster PayHop’s operational capabilities.
Founded in 2020, PayHop is on track to reach breakeven in the current year and has set ambitious goals for growth through 2025. The company aims to connect with one million retailers and achieve R$1 billion in transaction volume by then. Given its substantial growth in 2023, with approximately 400,000 retailers onboarded and R$200 million in transaction volume, along with a sixfold increase in revenue from 2022 to 2023, these targets represent a sustainable yet aggressive expansion strategy.
Entering the escrow duplicates sector, a market three times the size of the credit card segment, is a key strategy for PayHop to achieve these milestones. The company’s innovative approach and potential to solve real-world problems within the financial market have been praised by Felipe Fornaziere, General Partner at Citrino Ventures and manager of CV iDEXO.
In conclusion, PayHop’s new funding round and strategic partnership with TOTVS position the company for significant growth in the escrow duplicates market. With ambitious goals for expansion and a track record of impressive growth, PayHop aims to become a major player in the Brazilian fintech industry.
