QED Investors led a USD15m Series B for Hash, a Brazilian payment services provider for companies and SMEs, with follow-on from KASZEK and Canary. KASZEK and Canary invested BRL13m in 2019.
(Press Release) – SÃO PAULO, April 20, 2021 – Hash, Brazil’s leading payment infrastructure fintech, announced a USD 15 million Series B round led by QED Investors and with follow-on investment from previous backers Kaszek and Canary. The investment will be used to scale the company’s payments business which processed more than R$1,5 billion total payment volume in 2021, as well as to expand offering to other banking as a service product such as card issuing.
Hash was founded in 2017 with the mission of enabling B2B companies to offer their own financial solutions and to decentralize payments and banking solutions across Brazil. Today, 80 percent of the financial services are concentrated on the top five incumbent banks. With a fully customizable product, Hash’s platform enables clients to absorb financial transaction flows from all their buyers. Hash enables the creation of new revenue lines for its clients while at the same time, strengthens and increases the competitiveness of small and medium-sized entrepreneurs working with those clients.
“We democratize access to financial services and want to enable hundreds of new payment solutions throughout Brazil, offering super-customized products that add value to the companies’ business and their customers,” explains João Miranda, founder and CEO of Hash. “Our goal is to transform Hash into the leading financial infrastructure brand in Latin America. Combined with the support and expertise of QED, which has already invested in several fintechs and has extensive experience in the industry, this investment will support the entire evolution of our strategic plan,” he adds.
One of Hash’s most successful cases is Leo Madeiras, Brazil’s leading wood retailer. Using Hash’s platform, Leo Madeiras launched their own POS platform that is now being used by over 10,000 woodworkers throughout Brazil. “The options brought by Hash‘s product make all the difference in the daily life of our customers, the woodworkers, who work in Brazil. They now offer the same payment conditions as the large furniture stores in the country. In addition, we offer even more attractive negotiation conditions, greater protection and liquidity,” says Andrea Seibel, CEO of Leo Madeiras.
In 2020, Hash grew 10 times over the prior year and processed R$300 million in total payment volume. The growth was driven by the high demand coming from large companies searching for their own payment solutions and seeking to improve their customers’ financial lives.
QED Investors Partner Mike Packer, who led the investment into Hash, said: “We are incredibly excited to work with the team at Hash to expand the vision of providing payments and fintech infrastructure to the Brazilian market and beyond. The company has done a great job building a value-add product that its clients love. We think more and more businesses will continue to seek more control over payments and transaction flows to provide better end experiences for their customers and we believe Hash will fit this need.”
Added João: “Hash‘s customers have a deep knowledge of their business and ecosystem, and a direct relationship with their own customers, who are usually small and medium-sized companies or individual entrepreneurs. With our product, they can offer customized financial solutions that create much more value than those found in the traditional market. With our technology and operation, these companies will be able to build their own financial structures in a few weeks.”
Founded in 2017, Hash is a fintech from the payment services market with a business model focused on B2B. Its product connects entrepreneurs and customers through a platform capable of transforming large companies into financial service providers. With a 100% customizable product, Hash‘s platform enables companies to absorb the financial flows of their entire customer network, through an innovative solution that can be adapted to the needs of each industry. Its solutions are present in more than 15,000 establishments. Hash is the entrance to the payment services world.
About QED Investors
QED Investors is a global leading boutique venture capital firm based in Alexandria, Virginia. Founded by Nigel Morris and Frank Rotman in 2007, QED Investors is focused on investing in early stage, disruptive financial services companies in the U.S., U.K., Latin America and Southeast Asia. QED Investors is dedicated to building great businesses and uses a unique, hands-on approach that leverages its partners’ decades of entrepreneurial and operational experience, helping their companies achieve breakthrough growth. Notable investments include Credit Karma, ClearScore, Nubank, SoFi, Avant, Remitly, GreenSky, Klarna, QuintoAndar, Loft, Konfio, Creditas, Kavak, AvidXchange, Current and Mission Lane.
Kaszek is Latin American venture capital firm that partners with exceptional entrepreneurs to build lasting, high-impact technology-based companies whose main initial focus is Latin America. With over USD1bn in AUM the firm is Latin America’s largest early-stage venture capital. Kaszek has partnered with companies such as Nubank, QuintoAndar, Kavak, Gympass, MadeiraMadeira, Loggi, NuvemShop, Creditas, Bitso and Kushki. The firm was founded in 2011 by internet pioneers Hernan Kazah (MercadoLibre’s co-founder and former COO/CFO) and Nicolas Szekasy (MercadoLibre’s former CFO).