The manager Vinci Partners invested R$ 100 million in DMCard, a private label card company (a category that includes “store cards”), to buy a minority stake of an undisclosed size. Created in 2002, DMCard is one of the main issuers of private label cards for Brazilian retailers.
The investment was made via Vinci Impacto e Retorno IV (VIR IV), one of the impact funds of the manager’s private equity strategy (purchase of stakes in companies). The VIR IV makes applications in small and medium-sized companies in the country with “growth potential and measurable social, environmental and governance goals”, according to Vinci.
DMCard has a presence in 14 Brazilian states and partnerships with more than 1,100 small and medium-sized retailers, which together operate more than 2,300 stores in Brazil.
With the investment, Vinci hopes to help DM expand its impact and become the “financial services company chosen by the low-income classes”, as a reference in credit and productive microcredit.
“We are excited to partner with DM, a company with extensive experience in credit for low-income clients that translates into a proven and profitable business model that is predictable for expansion,” says José Pano, partner and head of strategy at VIR. .
“We believe that there is an opportunity for the company to develop new products and channels and for it to become a provider focused on digital and multichannel with a model guided by the relationship with the customer”, adds Pano.
The contribution to DMCard was the fifth made by VIR IV. So far, the fund’s gross allocation amounts to 43.7% of the BRL 1 billion in capital commitments held.
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