CloudWalk, Owner of InfinitePay, Raises FIDCs to Expand SME Operations

São Paulo, May 2024 - CloudWalk, owner of the InfinitePay financial solutions platform, has just raised R$1.6 billion in four new FIDCs (Cloudwalk Big Picture, I, II, III, and IV), which will be used to finance credit card receivables anticipation. The operation had demand three times greater than the supply and included 30 institutions purchasing shares, distributed among 189 investment vehicles from banks, fund managers, and family offices. Itaú BBA led the structuring, which also included Bradesco BBI and BV as offer coordinators. 

The goal with the FIDCs is to meet the exponential increase in the number of InfinitePay platform customers in Brazil, which ended 2023 with 1.2 million micro and small entrepreneurs, an increase of more than 200% compared to the previous year. CloudWalk closed last April with US$500 million (R$2.5 billion) in annualized recurring revenue (ARR), breaking the barrier of US$70 million (R$360 million) in annualized net profit. 

According to Pablo de Mello, COO of CloudWalk, the combination of rapid growth with profitability came from the diversification of the financial products and services portfolio that occurred in the last two years. Today, about 80% of entrepreneurs use at least two InfinitePay products, which offers solutions such as digital accounts, Tap to Pay (technology that transforms smartphones into payment terminals), cards, loans, e-commerce platform, and management software. 

"Our trajectory over these last two years shows that we knew how to establish the best strategy to grow quickly and sustainably at a time when the market faced various challenges," says Pablo. "Operations are healthy, our credit portfolio is growing robustly, and most importantly, we're generating cash." 

The FIDCs have 3-year terms. In total, CloudWalk has raised 8 FIDCs since 2021, with shares totaling R$4.9 billion. "We had a very positive experience with previously raised FIDCs and, together with other funding instruments, we will be prepared to continue growing rapidly in conjunction with InfinitePay's partners," says Pablo. 

"We are very satisfied to have assembled a syndicate with first-rate financial institutions. What stood out in this issuance was the record demand and interest from agents we didn't usually see in previous fundraising, such as assets and family offices. It's a sign that the market recognizes CloudWalk's financial and operational robustness," he concludes.