Brazilian fintech QI Tech introduced a $50 million Sequence B spherical extension led by Basic Atlantic, supplementing its earlier $200 million funding six months prior and catapulting the agency previous the $1 billion valuation mark.
Therefore, Latin America welcomes one other unicorn firm into its fold, regardless of the challenges posed by the current surge in rates of interest, which notably dampened valuations for tech startups throughout the area. Funding agency Throughout Capital additionally participated within the deal.
“QI Tech is taking intentional, strategic steps to assist our growth and create a complete suite of monetary infrastructure merchandise that higher handle shopper wants,” Pedro Mac Dowell, CEO and founder at QI Tech, stated. “Reaching unicorn standing is reflection of the arduous work.”
QI Tech bucks the pattern
The Sao Paulo-based Brazilian fintech had already bucked the pattern again in October, when it scored massive with a $200 million Sequence B funding spherical led by Basic Atlantic as properly. On the time, nevertheless, the corporate selected to maintain its valuation underneath wraps.
Now, the corporate goals to use the funding to gas its development technique throughout the area. “We provide a whole infrastructure to enterprsies that search to supply monetary providers to their clients resembling banking as a service, anti-fraud instruments and extra,” the agency stated.
Established in 2018, the corporate affords a set of tech APIs that assist totally different digital produts for its clients. It’s a part of a a burgeoning wave of fintechs which have emerged lately to create much-needed digital banking infrastructure.
The agency permits banks, fintechs and non-financial companies to combine digital banking instruments resembling digital onboarding , facial recognition, credit score scoring, digital account opening, wire transfers, Pix funds and credit score underwriting.
A market on the rise
The banking-as-a-service market has been steadily increasing in Latin America, pushed by the area’s rising e-commerce sector and the growing adoption of digital banking in economies that had been as soon as predominantly cash-based.
The BaaS market is predicted to surpass the $2 billion threshold this 12 months, in accordance with a current examine, with additional development anticipated within the years forward. Market analysis agency Mordor Intelligence forecasts a gentle 7% annual development fee for the regional business, pushed by rising demand from non-bank companies searching for to combine monetary providers into their choices.
“We imagine QI Tech is uniquely positioned as a challenger to current incumbent options,” Luiz Ribeiro, Managing Director and Co-Head of the Brazil workplace at Basic Atlantic, stated. ” (It has) momentum to turn out to be a number one, diversified participant in Brazil’s monetary infrastructure ecosystem as alternatives for digital funds and credit score adoption proceed to emerge.”
