Toro Investimentos targets 500,000 clients at the brokerage in 1 year

Fintech Toro Investimentos puts its brokerage firm into operation on Wednesday with plans to register 500,000 accounts in 12 months, focusing on a digital platform and a differentiated pricing model to attract customers.

The company, which had an initial investment of 46 million reais from a group of investors last year, received an additional $ 20 million from the same group this year to accelerate its expansion . "We have a transforming product and an unprecedented pricing model," said Gabriel Kallas, one of five founding partners of the company, which he defines as fintech investment. Created in Belo Horizonte eight years ago, Toro obtained regulatory approvals early 2018.

According to Kallas, even before the financial institution was operational, more than 30,000 people were waiting to open an account Currently, B3 number of 711,000 individuals enrolled

In recent months, Brazilian stocks have suffered from a deterioration in the perception of risk on the country's macroeconomic situation and the political-electoral scenario. The Ibovespa index, benchmark of the domestic stock market, was folded in May by 10.87%. In June, it dropped by 5.2%.

Toro will enter an environment with already consolidated homes that develop services and products and adopt aggressive goals and strategies to conquer the market and face the fintechs, such as the Brazilian INTL FCStone unit. , Clear of Grupo XP and Terra Investimentos

Kallas compared Toro to the US free investment application Robinhood, which raised $ 363 million in May in a round of financing led by the Russian billionaire Yuri Milner

One of the characteristics of Toro Investimentos is the "win-win" pricing system for the shares, in which the client only pays the brokerage on the profit of the operation, provided that it be based on the recommendation of the investment team. badysis of the house or in the planned investment resource on the platform.

In the case of the gain, the rate is 10% on the profit. If the investment is lost, the customer pays nothing.

Kallas says that Toro focuses on attracting customers who are not yet operational and that the technology developed over the past two years seeks to simplify the process as much as possible.

A differential created by the company in this sense has been the development of a more user-friendly home broker with share recommendation boxes, including information on earnings and benefits. potential losses and costs.

"We integrate badysis and education into everything," he said, promising zero cost for badytical information on the platform, even for those who do not. Have no registration and access to a digital advisor for investments. Broker promises among other features a "market" environment. "In the event that a customer wishes to make an early repayment, Toro will calculate the discount on the basis of market conditions and other investors will have access to the offer of that badet on the market."