Business

PicPay postpones its IPO plans, say Neofeed and Pipeline

According to both news outlets, in talks with investors, the company was unable to reach the expected valuation for the operation

PicPay's headquarters, in Sao Paulo. Photo: PicPay/Courtesy

LABS

25.Jun.2021 15:31 BRT
UPDATED 26.Jun.2021 15:43 BRT

Ler em português

In 2020, the company ended the year with a loss of BRL 803 million, as it has been reinvesting everything it has to keep growing;
Today, PicPay has over 50 million users (36 million of them active).

PicPay withdrew from going public on Nasdaq this year. According to the news portal specializing in business and technology Neofeed, the largest digital wallet in Brazil and Latin America postponed its IPO plans for 2023.

Early this week, Pipeline, Valor Econômico‘s new website focused on business, said that PicPay had postponed the plans because the controllers did not reach the valuation they wanted for the operation.

The company filed for public listing on Nasdaq in April. BTG Pactual, Bradesco BBI, Santander, and Barclay’s, who were leading the process, had set a target of $20 billion. In conversations with investors, however, this value fell, according to Pipeline, to up to BRL 6 billion.

On the other hand, Neofeed found that J&F Participações, the company’s controller, will invest BRL 3 billion in PicPay. In 2020, the company ended the year with a loss of BRL 803 million, as it has been reinvesting everything it has to keep growing. In April, PicPay passed the mark of more than 50 million users (36 million of them active).

PicPay declined to comment on the matter.