Brazilian fintech leader, Stone, announced a significant achievement in securing a $467.5 million financing commitment from the U.S. Development Finance Corporation (DFC), a U.S. government agency. This move is part of Stone’s strategic initiative to bolster its receivables anticipation services for micro, small, and medium-sized enterprises (MSMEs) across Brazil.
The funding specifically targets enhancing the economic status of businesses led by women or those with a majority female workforce, focusing primarily on entrepreneurs in the North and Northeast regions of Brazil. This initiative is in line with Stone’s commitment to contribute to the socio-economic development of the country, as underscored by Pedro Zinner, CEO of StoneCo. He emphasizes that the DFC line will enable Stone to improve its product offerings and services, thus supporting entrepreneurs aspiring to scale their businesses and creating a positive societal impact by boosting local commerce, generating employment, and stimulating economic activity.
Stone’s approach, which prioritizes inclusivity and economic growth, is further validated by the behavior of its customers. A good portion of them utilizing the POS system choose to prepay 100% of their credit card receivables in advance, indicating the efficiency and necessity of such transactions for working capital financing, especially for small and micro retailers. This method has proven to be an effective financial solution, sometimes serving as the sole financial avenue available to these retailers. Stone’s recent financial commitment is a testament to its dedication to reinforcing the entrepreneurial ecosystem in Brazil, promoting a more inclusive and thriving economic environment.
