One7, which offers financial solutions to Brazilian businesses, will let Rapidoo continue operating independently in its mission to help SMBs pay invoices faster. But João Paulo Fiuza, CEO of One7, told Contxto that the company wants to focus on helping businesses which bill up to $500,000 Brazilian reais ($93,654) a month and lack access to cash flow and accounts payable (AP) or don’t have credit.
The acquisition will particularly come in handy during the pandemic, which has hit Brazil particularly hard. SMBs, without much access to cash flow or capital, were especially damaged, even though the government and bank tried to help with new credit lines.
According to official statistics, 3 percent of the country’s micro businesses and SMBs have closed amid the pandemic, and the number could rise to 6 percent or 7 percent this month, Contxto reported.
With the acquisition, Rapidoo, launched in 2016 by Pedro de Cicco, Thiago Frigo, Caspar Gerleve, and Raphael Monteiro, hopes to combat those numbers and expand its customer base. Gerleve said the acquisition would lend Rapidoo the benefits of One7’s more expansive resources.
“Their financial infrastructure and market knowledge will help us accelerate making our receivables management solution available to the millions of micro and small businesses in Brazil who do not yet have sufficient access to credit,” he said, according to Contxto.
Although the particulars of the deal were not discussed, One7 did say it will inject $50 million Brazilian reais ($9.4 million) into financing for businesses to pay receivables, Contxto reported.
The Brazilian government implemented a financial aid program for its SMBs in April, attempting to help out the businesses not making more than $360,000 Brazilian reais ($67,432) to get credit for 30 percent of two months’ worth of revenue.
According to Fiuza, One7 is looking to “take a leap in geographic expansion with the acquisition, serving customers from all over the country,” according to Contxto.