Brazilian fintech CashU has launched a R$100 million Credit Rights Investment Fund (FIDC) to enhance access to B2B credit for small and medium-sized enterprises (SMEs). The fund, backed by Itaú BBA and Japanese financial conglomerate Credit Saison, will fuel CashU’s credit operations, allowing it to expand financing solutions for businesses. With this initiative, the company aims to scale its AI-driven lending platform, enabling seamless credit access through industry sales channels and large distributors.

AI-Powered Credit Solutions

The fintech’s proprietary technology is integrated into industry sales channels and large distributors, offering real-time commercial and financial insights. CashU leverages AI and Predictive Analytics to provide hyper-personalized credit solutions tailored to SMEs’ needs. This innovative approach enables more precise credit analysis, addressing gaps in traditional banking systems.

Market Confidence in CashU’s Innovation

CEO and Founder Thiago Saldanha emphasized that CashU's success reflects the market’s growing confidence in AI-driven credit assessment. He noted that large banks and financial incumbents often overlook key data that AI can effectively process. By utilizing these advanced data-driven models, CashU has positioned itself as a disruptor in the credit sector.

Early Challenges in Securing Investment

Founded in 2019 by Saldanha, João Otávio Torquato, and Yuri Fonseca, CashU initially struggled to convince investors of AI’s transformative potential in financial services. At the time, the fintech ecosystem in Brazil was skeptical of AI as a core differentiator. However, exposure to the U.S. market provided insights into the long-term advantages of AI in financial innovation, fueling CashU’s strategic vision.

A Proprietary AI Model with Extensive Data Insights

CashU’s proprietary AI model evaluates over 1,500 behavioral and macroeconomic variables to offer precise credit assessments. Through partnerships with distributors, the company taps into vast data streams, mapping buyer behaviors in unprecedented detail. This advanced credit analysis enables SMEs to access financing options tailored to their specific needs.

A Booming Opportunity in SME Credit

With Brazil’s credit sector projected to grow at a slower pace in 2025, CashU sees an opportunity to bridge the financing gap for SMEs. According to the Banking Economy and Expectations Survey by Febraban, overall credit growth is expected to reach 9%, indicating a shifting landscape in financial accessibility. Saldanha believes the next wave of fintech innovation will focus on SMEs, driving economic growth through targeted credit solutions.

CashU’s Vision for the Future

CashU aims to provide R$1 billion in credit to SMEs by 2025, addressing gaps left by traditional financial institutions. By leveraging AI-driven predictive models, the company seeks to offer more accessible and sustainable financing options for small businesses. Saldanha remains confident in Brazil’s entrepreneurial spirit, reinforcing CashU’s mission to empower SMEs and fuel economic development.

As the fintech ecosystem continues to evolve, CashU stands at the forefront of AI-driven credit solutions, proving that data science can revolutionize SME financing. The successful launch of its R$100 million fund underlines investor confidence in its predictive analytics capabilities. With ambitious expansion plans, CashU is poised to play a pivotal role in reshaping the financial landscape for businesses in Brazil and beyond.