Fast-growing Brazilian neobank Neon has raised $93.5 million in a Series B round led by General Atlantic and Banco Votorantim as it seeks to grow its two million customer base beyond the Rio-Sao Paulo corridor.
This is Neon's second round of funding. The first investment, valued at $22 million, was made in May 2018 by venture capital funds Monashees, Omidyar Network, BBVA's Propel, Quona and Mabi, who have each returned for the current round.
Much of the new capital will be preserved for hiring new tech staff as the business bids to triple its customer base from two million to six million by the end of 2020. The company will end the year with about 600 staff, three times the number in place at the start of 2019.
New acquisitions are also in Neon's sights, having already acquired MEI Fácil, to strengthen its services aimed at micro-entrepreneurs.
Founder Pedro Conrade says: "This new fundraising rounds off our business model and gives us the strength to keep growing at an even more intense pace and to invest even more in technology."
Neon is not the only challenger competing for space in the crowded Brazilian market. Other digital equivalents include Nubank, Inter-Bank, C6 Bank, BS2 and Bradesco spin-off Next. Europe's N26 has also announced plans to open up to Brazilian consumers by early next year.