Brazilian fintech QI Tech secures $200 million in Series B funding
Brazilian banking-as-a-service startup QI Tech has recently raised an impressive $200 million in a Series B funding round. The funding was led by General Atlantic, a New York-based investment firm. This new capital injection brings QI Tech’s total venture capital raised since its establishment in 2018 to a significant $262 million.
Key Takeaway
Brazilian fintech QI Tech has raised $200 million in a Series B funding round led by General Atlantic. QI Tech’s infrastructure platform allows companies to offer financial products and services through a modular API. Its profitable growth and strategic acquisitions contribute to the positive market outlook for fintech companies in Brazil.
QI Tech revolutionizes financial services with its infrastructure platform
QI Tech, founded by Pedro Mac Dowell, Marcelo Bentivoglio, and Marcelo Buosi, is an infrastructure platform that allows companies to offer financial products and services to their customers, employees, or suppliers. Through its modular API, QI Tech enables the development of credit, payment, and banking solutions. One of its key features is its Direct Credit Society (SCD) license, making it the first SCD approved by the Brazilian Central Bank.
The technology provided by QI Tech streamlines the process of creating digital accounts, making payments, and issuing loans. It offers a comprehensive suite of financial tools including digital registration, data validation, credit scoring, digital account opening, wire transfers, Pix, bank slips, and credit underwriting. Its solution has gained traction in various sectors of the economy, serving businesses such as e-commerce platforms and asset managers.
Profitable growth and strategic plans
QI Tech claims to have been profitable since its first year of operation. In the first half of 2023, the company reported net revenues of $21.2 million, an impressive 89% increase compared to the same period in 2022. Its customer base includes prominent names like Shopee, Vivo Telefonica, and 99 (Didi).
With the new investment, QI Tech plans to pursue strategic mergers and acquisitions to expand its product offering and consolidate its presence in specific verticals. The company has already made notable acquisitions, including Zaig, a startup focused on providing KYC, AML, Antifraud, and Credit Scoring engines, and Builders Bank, a banking application development startup. QI Tech also aims to leverage its lending-as-a-service business and further develop its banking-as-a-service segment and broker dealer license.
Positive market outlook and investor confidence
QI Tech’s success story reflects the positive market outlook for fintech companies in Brazil. Other successful players in the Brazilian fintech landscape include Nubank, a digital bank valued at over $35 billion, and payments infrastructure startup Pismo, which was recently acquired by Visa for $1 billion.
Luiz Ribeiro, Managing Director and Co-Head of General Atlantic’s Brazilian office, expressed his confidence in QI Tech’s future prospects. He commended the leadership team for their vision, execution skills, and forward-thinking approach, which have enabled QI Tech to establish a strong position in the market. Ribeiro emphasized QI Tech’s growth and profitability, as well as its ability to cater to the increasing demand for embedded finance, digital payments, and credit products in Brazil.
