FinTech: Deal-Making In The LatAm Payments Space
Payments processors get acquired in Chile and Brazil.
The Latin American fintech industry saw two acquisitions this week, one each in Chile and Brazil. Santiago, Chile-based Mercado Libre (NASDAQ: MELI), a POS market player in Latin America, acquired Redelcom. In Brazil, Sao Paulo-based, Advent-backed Ebanx acquired Brazil-based international money transfer firm Remessa Online for $229 million. (Reuters)
Mercado Libre – Redelcom
Redelcom is a Chilean company that has been operating since 2010 as a payment services provider and in October 2019 began offering point-of-sale (POS) terminals with the latest technology to retailers.
The amount Mercado paid for the deal has not been disclosed. In a statement, Mercado said the deal would allow it to consolidate its value proposition in Chile and enhance the growth of its multiple payment tools and digital financial solutions.
It would also advance its objective to democratize trade and finance in Latin America and reduce financial inclusion gaps, helping to improve the quality of life of people and boosting the business of companies, especially SMEs and entrepreneurs.
More than 32,000 SMEs and entrepreneurs sell on Mercado Libre, which is a significant player in the POS market in different countries in the region, selling more than one million terminals during the third quarter of 2021.
Ebanx – Remessa Online
Brazilian fintech Ebanx, which is backed by U.S. private equity firm Advent International, acquired Remessa Online to complement its payments business, mostly focused on processing payments from clients of global websites, and to boost its growth trajectory.
Previously, Advent had paid $430 million for a minority stake in Remessa.
It has served 350,000 companies and individuals, totaling $5.2 billion in remittances since its founding five years ago.
Related Story: Brazilian Payments Network CloudWalk Reels In $190M Series B Funding
Latest Alternative Investment News
FinTech: Klarna’s All-In Efforts To Achieve Profitability Getting Traction
Swedish fintech company Klarna achieved a significant improvement in its financial performance during the first quarter, as it halved its net loss compared to the same period last year. The…
Alternative Investments/AI: Euclidean Technologies Launches ETF For AI-Selected Value Stocks
Seattle-based investment advisor Euclidean Technologies Management has launched its first exchange-traded fund (ETF), the Euclidean Fundamental Value ETF (ECML US). The actively managed US equity fund utilizes artificial intelligence (AI)…
Venture Capital: Matrix Partners Raises $550M For Its Fourth India Fund
Matrix Partners India, a venture capital firm focused on investments in India, has announced the closure of its latest fund, securing over $550 million in commitments. This new fund from…
Artificial Intelligence: AI Helps Researchers Find A Compound To Kill The Drug-Resistant A. baumannii Bacterium
Scientists at MIT and McMaster University have used artificial intelligence (AI) to identify a new antibiotic that can combat drug-resistant infections caused by Acinetobacter baumannii. The bacterium is commonly found…