In the country with the largest fintech ecosystem in Latin America, Minas Gerais-based M3 Lending aims to occupy a strategic space and facilitate credit for small and medium-sized enterprises (SMEs) with cutting-edge technology and streamlined processes. To achieve this, the fintech has just announced an investment of R$500,000 in Valence, a startup also based in Minas Gerais specializing in artificial intelligence (AI).
This move occurs amid a rapidly expanding market. Brazil leads the fintech market in Latin America, with 1,706 fintechs operating by 2025, according to Distrito, representing about 32% of the region’s financial startups, driven by demand for credit, digital payment methods, and solutions for banking as a service.
“Artificial intelligence allows us to evolve every day. With Valence, we expand our analysis and service capabilities, reduce processing times, and improve the customer experience. This aligns with our purpose of making credit more accessible to those who drive the country’s economy,” says Gabriel César, CEO of M3 Lending.
Founded in Belo Horizonte, M3 connects investors with SMEs, offering rates up to 22% lower than those charged by traditional banks, in a 100% digital and bureaucracy-free process. Now, with the use of AI, the fintech aims to create a complete financial ecosystem, combining credit, data, and integrated services for businesses.
In Brazil, micro and small enterprises account for approximately 27% of GDP and form the base of more than half of formal jobs, according to Sebrae/IBGE data, but they face historical difficulties in accessing credit under viable conditions. Experts believe that incorporating artificial intelligence into credit analysis can reduce costs, improve risk assessment accuracy, and accelerate resource allocation, unlocking growth in a strategic segment for the economy.
“We want to build an efficient bridge between investors seeking stable returns and businesses needing capital to grow. We’re creating a secure, transparent, and simple channel that circulates money where it generates real value: in small and medium-sized enterprises, which are the engine of the country,” concludes M3’s CEO.
Gabriel states that the investment in Valence “is a move aligned with the scenario where fintechs are no longer just credit intermediaries but are positioning themselves as integrated financial service platforms, driven by data and technology.” For the market, it’s a clear signal that, in the competitive fintech environment, efficiency and embedded intelligence will be increasingly decisive differentiators.
