- Unlike other fintechs and digital banks in Brazil that target B2C products, Neon is taking a different path and focusing on micro and small businesses
- After the purchase, all MEI Fácil features will be available directly on Neon’s platform
- The transaction was moderated by a common investor, yet its value wasn’t revealed
Entrepreneurship is rising in Brazil, that’s a fact. According to Sebrae, we can expect that by 2022 small businesses will increase by 43%, and the main factor responsible for such a rise is the MEI (Individual micro-entrepreneurs). This kind of business represented 8 out of 10 small businesses created in Brazil in 2018, a year in which there was an increase of 15% in the number of new small companies registered.
And this promising landscape is exactly what caught Neon‘s attention. The Brazilian fintech recently acquired the startup MEI Fácil, a company focused on helping entrepreneurs to reduce the bureaucracy of the MEI process, according to Contxto.
The Brazilian MEI is a specific regulation that allows micro-entrepreneurs to pay fewer taxes and enjoy the benefits of developing a business model for companies that are below the maximum revenue value of BRL 81.000 per year.
Both Neon and MEI Fácil haven’t revealed the value of the purchase, but the transaction was moderated by a common investor, Yellow Ventures. And now all the features offered by MEI Fácil will be available on Neon’s platform and app.
The purchase is part of the SMB’s strategy that Neon began last year, after launching the “Neon Pejota” product, an exclusive banking account for legal entities with special advantages and without incurring debit or credit fees.