Conta Simples, a company specializing in expense management and corporate cards in Brazil, recently announced a significant increase in funding with a Series B round of $41.5 million (equivalent to over R$200 million). The round was led by Base10 Partners, with participation from investors who were also involved in Conta’s Series A, including Valor Capital, Jam Fund, Y Combinator, Big Bets, Broadhaven, and DOMO. As part of this investment, Base10 managing partner TJ Nahigian has joined the board of Conta.
According to CEO Rodrigo Tognini and CFO Taeli Klaumann, 2023 was a standout year for Conta Simples. The company achieved breakeven and obtained a license from the Brazilian Central Bank to operate as a Direct Credit Society. This allows Conta to offer a wider range of financial services, including credit, digital accounts, and payments.
Currently, Conta Simples has 30,000 active users and has issued a total of 500,000 physical and digital corporate credit cards. This has resulted in a payment volume of R$18 billion (approximately $3 trillion), as stated by Tognini.
“Over the past year, we have experienced significant revenue growth, almost triple our previous year’s numbers,” Tognini stated. “We have also shifted from a negative margin to reaching breakeven, which I believe was a key factor in attracting interest from our current investors for this Series B round.”
In addition to its core expense management services, Conta Simples offers streamlined processes and customized monitoring to ensure efficient financial operations. In 2022, the company acquired Hackr Ads, an online advertising startup, through a Series A round of R$121 million (equivalent to $24.8 million in today’s dollars). This acquisition has allowed Hackr Ads’ clients to utilize Conta’s services, while also providing Conta with the ability to offer advertising management to its customers.
The new funding will be utilized in several ways. Tognini plans to expand the company’s team, with the goal of filling approximately 100 new positions by 2024. Additionally, Conta Simples aims to cater to larger corporate clients in the future, in addition to its current focus on small businesses. CFO Klaumann explains, “Many big companies, not only in Brazil but also in other countries, lack efficient expense management services. This presents a significant opportunity for us. Our plan is to leverage this funding in the next few years, working closely with the Brazilian Central Bank, to develop new products and features that cater to businesses of all sizes.”