Brazil-based CX startup Zenvia raises $150 million with IPO, but drops 21% on its Nasdaq debut

Through a private placement by Twilio the company raised another $50 million

Cassio Bobsin is the CEO & Founder at Zenvia. Photo: Courtesy/Zenvia

22.Jul.2021 17:57 BRT
UPDATED 19:42 BRT

Concurrently with and contingent upon the completion of the offering, Twilio, an Amazon investee that operates similarly to Zenvia in the United States, has agreed to purchase 3,846,153 additional Class A common shares to be issued by Zenvia, also at $13 per share;
With this, Zenvia raised $200 million – $150 million through the IPO and $50 million through private placement.

Brazil’s Zenvia, a customer experience communications platform that develops automated and customized communication, voice, and video solutions, debuted on Nasdaq this Thursday under the ticker symbol “ZENV” and a 21.54% drop. The day before, the pricing of the company’s initial public offering of 11,538,461 Class A common shares was set at $13 per share – the low end of the range of $13 to $15. The company’s shares traded between $9.49 and $11.20 and closed the day at $10.20.

The underwriters have a 30-day option to purchase up to an additional 1,730,769 Class A common shares from Zenvia at the initial public offering price, less underwriting discounts, and commissions.

Concurrently with and contingent upon the completion of the offering, Twilio – an Amazon investee that operates similarly to Zenvia in the United States, but with a focus on app developers with global operations and not local companies as Zenvia – has agreed to purchase 3,846,153 additional Class A common shares to be issued by Zenvia, also at $13 per share.

With this, Zenvia raised $200 million – $150 million through the IPO and $50 million through private placement.

Goldman Sachs, Morgan Stanley, Banco Bradesco BBI, Itau BBA, and UBS Securities are the global coordinators for the proposed offering, and XP Investments US is acting as joint book-runner. Zenvia originally planned to do its IPO in May, but it decided to postpone its offering due to the market conditions.

According to the company, Zenvia’s software has served over 10,000 customers throughout Latin America until March 31, 2021. Zenvia reached a BRL 492.5 million revenue last year, a 28% increase compared to 2019, according to the prospectus filed by the company for the IPO.

In addition to investing in technology and international expansion, Zenvia will use the funds to pay the amount used in the acquisition of D1, a startup bought in March this year.