Yes, Hotmart was on its way to an IPO; hires banks for Nasdaq’s debut

Hotmart's IPO would take place in Nasdaq likely by year-end, people familiar with the matter said

João Pedro Resende and Mateus Bicalho, co-founders of Hotmart. Photo: Hotmart/Courtesy

18.Jun.2021 12:03 BRT
UPDATED 16:29 BRT

Currently, Hotmart has around 1,300 employees in 12 offices around the world;
Goldman Sachs, JPMorgan Chase and Morgan Stanley will be lead underwriters on the deal.

Brazilian tech company Hotmart has hired banks for an initial public offering to raise roughly $500 million, likely by year-end, three sources familiar with the matter told Reuters.

Goldman Sachs, JPMorgan Chase and Morgan Stanley will be lead underwriters on the deal, two of these sources added. It would take place on Nasdaq, all three sources said, declining to say how the proceeds would be used.

Considered a “unicorn,” given its private valuation of over $1 billion, Hotmart is a cloud-based platform which allows entrepreneurs to create, market and manage online businesses.

The fast-growing company, which has been expanding outside Brazil and bulking up through acquisitions, plans to raise between $400 million and $600 million in the offering.

Founded by Joao Pedro Resende and Mateus Bicalho, onetime computer science classmates at the same university in the state of Minas Gerais, Hotmart’s investors include General Atlantic, Singapore’s GIC and Koolen & Partners. In April, TVC Investments and Alkeon Capital also joined the company, financing a $130 million funding round. TVC has helped guide CEOs through more than 125 IPOs.

Currently, Hotmart has around 1,300 employees in 12 offices around the world (The Netherlands, US, Brazil, Spain, Mexico, Colombia, and France), and it is hiring.

Last year, Hotmart entered into a business combination with Teachable, a New York-based company that is one of the category leaders in the U.S. The combined gross merchandise value (GMV) transacted on the platform more than doubled compared to the previous year.

The planned IPO is the latest sign of how some Brazilian tech companies are looking to broaden their horizons after a raft of funding rounds in the last years.

Earlier this week, payments company EBANX, which also owns LABS, announced a $430 million funding round with Advent International and plans for an IPO by the beginning of 2022. VTEX, a software provider for e-commerce backed by SoftBank Group, has also hired banks for a listing on Nasdaq.