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Brazil’s Fintech Firm QI Tech Secures Historic $200M Funding

QI Tech team members

Brazilian fintech firm QI Tech has recently made headlines by securing a whopping $200 million in a Series B funding round led by New York-based General Atlantic. This funding round is not only a monumental step for QI Tech but also marks a significant event in the Brazilian fintech ecosystem

The History QI Tech

Established in 2018 by Pedro Mac Dowell, Marcelo Bentivoglio, and Marcelo Buosi, QI Tech embarked on a mission to revolutionize the financial services landscape in Brazil. Over the years, it has morphed into a robust infrastructure platform, facilitating the development of credit, payment, and banking solutions through a modular API. Notably, QI Tech holds a Direct Credit Society (SCD) license, a distinctive national bank charter in Brazil, positioning it uniquely in the fintech space.

QI Tech team members
Image Credit: QI Tech

The journey from its inception to the recent historic funding round showcases QI Tech’s strategic and consistent growth. Initially bootstrapped, the firm catapulted to a new growth phase post its Series A funding round in November 2021, which raised $50 million led by the Sovereign Investment Fund of Singapore (GIC). The success of this round was a precursor to the latest Series B funding, which has now bolstered QI Tech’s total venture capital to $262 million. This funding trajectory underscores the increasing confidence of investors in QI Tech’s value proposition and its significant role in the evolving fintech landscape of Brazil​

Funding Details:

In its recent Series B round, QI Tech secured $200 million, spearheaded by General Atlantic. The funding aims at propelling future acquisitions and paving the path for a potential public offering. The São Paulo-based firm plans to channel the funds towards market opportunities, emphasizing acquisitions and IPO preparations, contingent on market conditions​.

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Market Implications:

This substantial investment elevates QI Tech’s standing in the Brazilian fintech domain, heralding a promising era for banking-as-a-service (BaaS) models. It reflects the growing investor confidence in fintech solutions that bridge the conventional banking and modern digital infrastructure gap. By fostering a conducive environment for financial innovation, QI Tech’s funding round echoes a broader market trend towards digital financial solutions. The investment is a testament to the burgeoning fintech scene in Brazil, underscored by a collaborative synergy between traditional financial institutions and fintech firms, driving a mutually beneficial financial ecosystem.

Product and Service Offerings by QI Tech:

QI Tech’s robust suite of financial services solutions empowers businesses to operate like banks. Through its modular API, it facilitates various financial transactions, from digital registration to credit underwriting, catering to different sectors of the economy​.

Financial Performance of QI Tech:

Despite being relatively new in the market, QI Tech has shown impressive financial mettle. The firm reported a commendable $21.2 million in net revenues during H1 2023, marking an 89% upsurge compared to the same period in 2022. This financial trajectory, coupled with a profitable run since its inception, bodes well for its future endeavors.

Future Plans QI Tech:

The fresh capital is earmarked for exploring strategic M&A opportunities and bolstering QI Tech’s aggressive growth strategy. The firm’s ambition extends to enhancing its product offerings and consolidating its market presence through strategic acquisitions, underscoring its long-term vision of becoming a pivotal player in the fintech landscape.

Industry Reaction:

The investment round has garnered positive reactions from industry stakeholders, with General Atlantic’s Luiz Ribeiro lauding QI Tech’s visionary leadership and its compelling financial market infrastructure in Brazil.

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The substantial funding secured by QI Tech underscores the vibrant potential of fintech innovations in Brazil. This development not only propels QI Tech to a new growth trajectory but also signals a promising outlook for the fintech sector in Brazil, accentuating the crucial role of financial technology in fostering economic growth and financial inclusion in emerging markets.

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