Business

Brazil has 828 fintechs, 34% more than a year ago

According to the innovation platform Distrito, digital services, category represented by Nubank and Neon, was the one receiving a greater volume of investment so far in 2020

Nubank launches credit card in Mexico
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  • Leading the list in terms of numbers of fintechs are the following segments: payment methods (16.3%), back-office (15.5%), and credit (15%);
  • However, when it comes to investment volume, the category called digital services was the one attracting more resources in 2020 ($600.5 million), with players such as Nubank and Neon driving such results.

Brazil has 34% more fintechs in a year-over-year comparison, with 828 companies in this sector, according to a survey carried out by the Brazilian innovation platform Distrito.

Leading the list in terms of numbers of fintechs are the following segments: payment methods (16.3%), back-office (15.5%), and credit (15%).

However, when it comes to investment volume, the category called digital services was the one attracting more resources in 2020 ($600.5 million), with players such as Nubank and Neon driving such results.

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In September, Neon raised $300 million in a new fundraising round, the fifth in its history. The Series C investment was led by General Atlantic. As announced in August, Nubank received a $300 million round from five undisclosed investors in June.

Overall, Brazilian fintechs have received $939 million in investment so far this year. In September alone, $431.6 million was raised, the largest volume ever for the month. Along with Neon’s, the digital bank Agibank’s funding was one of the major investments this last month. The round was a $75 million contribution made by private equity fund manager Vinci Partners.

In 2020, 14 mergers and acquisitions of fintechs have already been carried out. In the last month, Loft acquired Invest Mais aiming to expand its offer of real estate credit. DinDin was acquired by Bradesco’s digital wallet and payment account Bitz, and Santander announced the acquisition of
60% of Toro Investimentos.

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