Fintech Clara taps new finance head as Brazil operations grow ’quickly’

SAO PAULO, Sept 16 (Reuters) - Latin American fintech Clara has tapped one of its earliest angel investors as the firm's new finance director, it told Reuters on Monday, as operations in top market Brazil continue to grow "quite quickly" and are now close to break even.

WHY IT'S IMPORTANT

Clara is backed by investors such as Monashees and Coatue and landed debt lines from Goldman Sachs and Accial in the past. In 2021, it joined an exclusive club of less than a dozen Mexican unicorns, or startups valued at $1 billion or more.

The company has topped 3 billion reais ($544.25 million) in total payment volumes in Brazil, where it is now headquartered, and has Burger King, Toyota, Hilton and lender Banco BV among its clients.

NEW NAME

Clara's new director of finance, Travis Foxhall, will oversee financial operations and work on fundraising, he said in an interview.

Foxhall joined Clara from billionaire Steve Cohen-funded Point72 Ventures. He previously served as chief of staff at Brazilian digital bank Neon.

KEY QUOTES

"We are in a good situation from a capital perspective," Foxhall said, adding that growth in 2024 has been in line with projections.

"I'll be spending time on fundraising. It's worth noting that the company is well capitalized, but we are very optimistic to continue to receive a lot of inbounds from funds."

"We don't need to fundraise, but if we find the right investor at the right time, we could always consider something."

ADDITIONAL CONTEXT

In 2023, as funds in the region started to dry up amid tight financial conditions, Clara managed to raise $60 million in an equity round led by GGV Capital.

Clara's services include issuing corporate credit cards, invoices management, bill payments and cross-border payments. It operates in Brazil, Mexico and Colombia. ($1 = 5.5122 reais) (Reporting by Gabriel Araujo Editing by Marguerita Choy)