PayPal Ventures leads $15m Series A for Brazilian fintech Ume
Sao Paulo-based fintech start-up Ume has raised $15 million in a Series A funding round led by PayPal Ventures with additional participation from NFX, Globo Ventures and Clocktower Ventures.
Ume raises $15m Series A led by PayPal Ventures
Alongside the new equity funding, the company has also secured a $20 million debt financing facility from Verde, Itaú and other creditors.
Founded in 2019, Ume operates a platform that enables shoppers throughout Brazil to complete purchases through split repayments using Pix, the country’s instant payment system launched in 2020.
“By being Pix native, Ume ensures rapid and secure transactions that enhance the user experience and streamline the credit process,” says PayPal Ventures.
The credit decisioning technology behind the buy now, pay later (BNPL) service is powered by AI, an approach PayPal Ventures adds can “analyse a vast array of data points more accurately and efficiently than traditional methods, leading to more precise risk assessments, better-informed lending decisions, personalised loan terms, and higher approval rates”.
Ume says the funding will “enable us to further leverage Pix and AI, expanding our platform to reach even more businesses and consumers nationwide”. In addition, the start-up also plans to further invest in its technology, marketing and sales infrastructure, while further establishing its presence across Brazil.
PayPal’s leadership of the round highlights its continued focus on AI-powered start-ups. In June, the investor led a larger $20 million raise, also Series A, for New York-based Gynger. Founded in 2021, the start-up operates an AI-driven payments platform designed specifically for tech buyers and sellers.
