Brazilian fintech QI Tech introduced a $50 million Sequence B spherical extension led by Normal 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 enlargement and create a complete suite of economic infrastructure merchandise that higher deal with consumer wants,” Pedro Mac Dowell, CEO and founder at QI Tech, mentioned. “Attaining 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 large with a $200 million Sequence B funding spherical led by Normal Atlantic as effectively. On the time, nevertheless, the corporate selected to maintain its valuation beneath wraps.
Now, the corporate goals to use the funding to gasoline its progress technique throughout the area. “We provide a whole infrastructure to enterprsies that search to supply monetary providers to their prospects equivalent to banking as a service, anti-fraud instruments and extra,” the agency mentioned.
Established in 2018, the corporate presents a collection of tech APIs that assist completely different digital produts for its prospects. It’s a part of a a burgeoning wave of fintechs which have emerged lately to create much-needed digital banking infrastructure.
The agency allows banks, fintechs and non-financial corporations to combine digital banking instruments equivalent to 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 rising adoption of digital banking in economies that have been as soon as predominantly cash-based.
The BaaS market is predicted to surpass the $2 billion threshold this yr, in line with a current research, with additional progress anticipated within the years forward. Market analysis agency Mordor Intelligence forecasts a gentle 7% annual progress price for the regional business, pushed by rising demand from non-bank companies in search of to combine monetary providers into their choices.
“We imagine QI Tech is uniquely positioned as a challenger to present incumbent options,” Luiz Ribeiro, Managing Director and Co-Head of the Brazil workplace at Normal Atlantic, mentioned. ” (It has) momentum to turn into a number one, diversified participant in Brazil’s monetary infrastructure ecosystem as alternatives for digital funds and credit score adoption proceed to emerge.”
