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Brazil's C6 Bank raises capital to boost loans after TIM partnership

Carolina Mandl
·2 mins read

By Carolina Mandl

SAO PAULO, Aug 13 (Reuters) - Brazilian digital lender C6 Bank's key stakeholders have injected 525 million reais ($96.02 million) in fresh capital, providing fuel for loan growth after it started a partnership with telecoms firm TIM Participacoes SA last month.

After Brazil's central bank approved the additional funds from CEO Marcelo Kalim and other investors on Wednesday, C6 will operate with 1.24 billion reais in capital.

C6 plans to offer more loans to consumers and small companies, besides investing in its online platform and in customer acquisition, Chief Financial Officer Karina Rodrigues said in a statement.

The bank, which ended July with 2.5 million clients, expects to grow at a faster speed after its partnership with TIM.

C6 and TIM announced the partnership in March, an agreement that may give the telecoms firm a stake of up to 15% in the bank, depending on the number of its customers that become C6's active clients, Marcos Massukado, a partner at C6, said in an interview. In the first three weeks of partnership, C6 gained 200,000 TIM clients as customers.

TIM has 55 million clients, to whom C6 can offer checking accounts, credit cards and loans to finance mobile phone purchases. The partnership also allows C6 to use TIM's stores as brick-and-mortar branches to sell services.

"A telecoms firm provides C6 not only with potential clients, but also with lots of data," said Massukado. "I know which products I should offer according to the client's mobile plan, for instance."

Kalim, a former partner and chairman of Brazilian investment bank Banco BTG Pactual SA, launched C6 in January 2019.

C6 ended March with 2.3 billion reais in assets, 266 million reais in its loan book and a net loss of 109.8 million reais in the first quarter, according to the central bank.

($1 = 5.4678 reais) (Reporting by Carolina Mandl Editing by Chizu Nomiyama)