PayHop, an innovative fintech startup, has announced a new round of funding from TOTVS’s corporate venture capital arm, CV iDEXO, marking its second investment round. This latest funding, which also saw participation from previous round investors such as Experian Ventures, DOMO.VC, Citrino, and angel investors, is set to propel PayHop into the escrow duplicates market. While the exact amount raised remains undisclosed for strategic reasons, this move underscores the fintech’s ambitious growth trajectory, already valued at over R$ 50 million.
The first funding round, amounting to R$ 11.5 million and led by Serasa Experian’s CVC, Experian Ventures, facilitated PayHop’s entry into the credit receivables market. Now, with the support of TOTVS and other investors, PayHop is poised 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 thrice the size of the credit card segment, is a key strategy for PayHop to achieve these milestones. Felipe Fornaziere, General Partner at Citrino Ventures and manager of CV iDEXO, praised PayHop’s innovative approach and potential to solve real-world problems within the newly regulatory-evolved financial market, highlighting the startup’s data-driven, technologically robust solutions.
