Brazilian digital bank Banco BS2 is set to acquire fintech company WEEL in a bid to form a B2B neobank in the country.
Headquartered in Israel, WEEL offers financing solutions to Brazilian small and medium-sized companies. The company leverages machine-learning technology to offer credit solutions.
WEEL is said to have more than 15 thousand customers in its database.
The transaction is expected to enable the combined company to create an integrated offering for SMEs. The combination will also lead to the addition of WEEL technology into BS2’s loan origination platform, data and machine learning systems.
Banco BS2 CEO Marcos Magalhães said: “We have ambitious growth plans. WEEL has the best products and the best digital credit expertise. It perfectly complements our offering and positions us as the leading digital financial services provider for small and medium-sized companies.
“The SME segment has often been ignored. Banking product development generally focuses only on individuals and large corporations. We’re going to change this logic.”
As agreed, WEEL’s staff will move to BS2. The fintech’s current shareholders, such as Monashees Capital and Franklin Templeton, will also become BS2 shareholders after necessary regulatory approvals.
WEEL founder and CEO Simcha Neumark said: “We are creating a unique experience in which the customer will have access to best-in-class digital products that provide simple solutions to their day-to-day challenges.
“Small and medium-sized companies will find in BS2 a one-stop shop for all of their banking and credit needs.”