Known as "the Netflix for apps and mobile games," Bemobi buys M4U payment platform expands its product offering and reach

M4U is one of the main payment solution providers for telecommunications carriers in Brazil

13.Aug.2021 15:00 BRT

M4U was a subsidiary of Cielo, Brazil’s largest acquirer controlled by Banco do Brasil and Bradesco, which justified the decision to sell the company to focus on its core businesses;
Cielo closed the sale of its subsidiary for a total of up to BRL 185 million, according to a relevant fact from the means of payment company to the Brazilian Securities Commission (CVM) on Friday.

Bemobi Mobile, a king of application subscription club or “Netflix for apps and mobile games,” announced its first acquisition after its IPO in February this year, when it raised more than BRL 1 billion. The company acquired Multidisplay, also known as M4U, a technology company that develops and operates digital payment platforms for the distribution of prepaid cell phone recharge and management of billing and collection of mobile phone plans.

M4U is one of the main payment solution providers for telecommunications carriers in the country. In 2020, the platform claims to have registered a volume of payments (TPV) of more than BRL 6 billion.

M4U was a subsidiary of Cielo, Brazil’s largest acquirer controlled by Banco do Brasil and Bradesco, which justified the decision to sell the company to focus on its core businesses. Cielo closed the sale of its subsidiary for a total of up to BRL 185 million, according to a relevant fact from the means of payment company to the Brazilian Securities Commission (CVM) on Friday.

Of this total, BRL 125 million refers to a fixed installment to be paid on the closing date of the business and BRL 60 million to a variable installment subject to certain assumptions after the end of the transaction.

The acquisition of M4U strengthens Bemobi’s business model, which generates revenue by selling free-of-ads, more affordable subscription packages from partners such as Disney, Viacom, Rovio, and Ubisoft.

“M4U will strengthen our position in the microfinance segment in which we already operate through various types of offers. It will also bring new skills and more than double our technology team, with a strong know-how in the area of payment means that will make our offers viable and accelerate the democratization of the consumption of digital services in the emerging markets in which we operate,” said Pedro Ripper, co-founder, and CEO at Bemobi, in a press release.

Bemobi has more than 2.2 billion potential customers in 76 mobile operators from over 40 countries with which the company works.