Why We Invested in Barte

NXTP
3 min readOct 31, 2023

We are proud to announce that NXTP Ventures and Force Over Mass have led a US$3 Million Seed round in São Paulo-based Barte to help equip Latin American SMEs with the necessary tools to manage their B2B payments, accounts receivables/payables, and cash flow as well as offer revenue-based financing. We’re excited to join Barte’s journey after their very successful 2022, where they achieved 10x revenue growth and continued to solidify themselves as the premium cash flow management platform for SMEs in Brazil.

THE PROBLEM: Tracking accounts receivables and payables for Latin American SMEs is all too often done across fragmented data sources, making it highly manual, time-consuming, and error-prone. These processes are critical for managing a business’s financial health and ensuring that bills are paid on time and revenues are collected efficiently. Furthermore, with the financing gap for SMEs in this region estimated to be US$1.03 trillion, Latin American companies lack access to desperately needed working capital. Specifically in Brazil, roughly two-thirds of small businesses are denied credit from Brazil’s major banks. As a result, approximately 50% of formal SMEs in LatAm do not have access to financing.

THE SOLUTION: Barte allows SMEs to centralize financial data by providing visibility on accounts payable, accounts receivable, and account balances. Their in-app payment options allow businesses to easily pay their suppliers and offer flexible payment terms to their customers on a case-by-case basis. Barte also offers automation tools for accounts payable and accounts receivable. With access to this client data, Barte can then offer working capital and access to credit for this wildly underserved market through highly personalized lines of credit, helping bridge a crucial finance gap crippling SMEs in LatAm.

THE MARKET: We’re particularly excited about huge secular tailwinds catalyzing Barte’s growth as 61% of Brazil’s 11.5 Million SMEs (which account for 27% of Brazil’s US$1.6 Trillion GDP) use Excel or Google Sheets to control expenses, 15% use pen and paper, and only 24% use Enterprise Resource Planning software. We’re can’t wait to see Barte capture a dominant position in the market as Brazil catches up to markets like the United States, where 78% of companies use Enterprise Resource Planning software.

THE TEAM: We’ve been extremely impressed with Co-Founders Caetano Lacerda and Raphael Dyxklay since first meeting them at the beginning of Q4 in 2022 in São Paulo. Caetano worked in Investment Banking at ​​Deutsche Bank in London before leading New Markets and Implementation at Tractable AI from Series B to Unicorn. Raphael has a wealth of product experience from notable Brazilian startups including Olist, Loft, and Creditas.

We’re excited about Barte’s mission to both solve financial management as well as fill a $1.03 Trillion USD financing gap for Latin American SMEs. Congratulations Caetano, Raphael, and the entire Barte team–we are excited to accompany you on your journey!

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NXTP

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