- Clara, a company specialized in the provision of corporate credit cards and expense management, is growing in line with the increase in this type of transactions.
- The latest bet: to expand in Brazil. In fact, it has already established a foothold in Latin America’s leading economy, but is seeking to strengthen its position.
- Gerry Giacoman, president of the unicorn, assured that the company has not ruled out, in the future, announcements in the equities sector.
Mexican startup Clara raised US$90 million in new funding under the management of US debt provider Axia Capital. The capital injection comes as it tries to boost its business in Brazil.
The funding will give the company, which specializes in providing corporate credit card and expense management services, the opportunity to increase its position in Latin America’s leading economy by growing its customer base.
The firm’s main goal is to reach 5 thousand companies with signed agreements, compared to the 2 thousand it has now, with which it could possibly quadruple the 600 million reais registered in its corporate cards during the past year.
“We have been in the Brazilian market for more than a year and we can see that operations continue to grow even faster than operations in Mexico at the beginning,” said Gerry Giacoman, the company’s president, to the British news agency Reuters.
According to the Mexican unicorn, by the end of next year the Brazilian market will become its largest operation. Clara’s valuation currently exceeds 1 billion dollars.
Financing for growth
The announcement released this week is the second debt facility for the company in less than 7 months, after a $150 million debt facility was registered in early August 2022 by investment banking group Goldman Sachs.
Clara’s CEO noted that having the right mix, i.e. capital mix, is essential about the company’s choice to finance debt rather than conduct new equity rounds, after they previously tapped capital from funds such as Coatue and Monashees.
According to Giacoman, this will give them the ability to separate resources allocated to increasing liquidity solutions for customers from those used for investments in equipment and products.
However, he assured that the company has not ruled out, in the future, announcements in the equities sector. Will they go public? It is a possibility that, for now, has not been confirmed.
Clara’s business segment
Founded in 2019, Clara has grown rapidly in the last three years and is establishing itself as a major player in the corporate credit card market.
According to Statista, and as we detailed before, the Mexican company has already processed more than $600 million in transactions since its launch.
Clara’s success can be attributed to its innovative approach. In particular, the company offers a simplified application process and customizable spending limits, making it easier for companies to manage their finances.
Clara also provides detailed reporting and analysis tools, giving companies greater visibility into their spending and helping them identify areas for cost savings.
The corporate credit card market is expected to continue to grow in the coming years, with more companies recognizing the benefits of using credit cards to manage their spending.
As such, and with its strength in Brazil, the Clara unicorn is well positioned to continue its growth trajectory and capture a larger market share.
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