Latin American Payments Processor EBANX Achieves Unicorn Status
Brazil-based fintech and payment processor EBANX is a newly-minted unicorn.
The payments and fintech startup, which enables transactions between global companies and Latin American commerce, received a “significant” investment from FTV Capital.
FTV Capital is a growth equity investment firm. EBANX did not disclose the amount of the investment, but suffice it to say it conferred the sought-after ‘unicorn’ tag on the company. Unicorns are tech startups with a valuation of $1 billion or more.
The company will use the money to hire in new markets and launch local payment services in other LatAm territories such as Colombia.
Founded in 2012, EBANX has become a one-stop-shop for businesses looking to access the lucrative LatAm market. Apart from the ubiquitous payment processing services, it offers market intelligence services, analytics, anti-fraud strategies, 24/7 customer service in the local language of Latin American customers, and localized marketing consultancy.
Global e-commerce enterprises such as AliExpress, Wish, Gearbest, Pipedrive, Spotify, and Airbnb are EBANX customers.
The fintech has recently announced partnerships with Uber Pay, Shopify, Visa and Coursera, Scribd, Ctrip.
“EBANX is already a leader in cross-border payment processing, specializing in Latin America,” said Alphonse Voigt, co-founder, and CEO. “By 2022, we aim to be the leader of both cross-border and local payments for global companies in Latin America.”
EBANX expects to process $2 billion in payments by the end of the year.
EBANX was initially backed by a $30 million growth equity investment from FTV Capital in December 2017, including participation from Endeavour Catalyst.
Since that investment, the fintech startup has reported a growth of 80% across all its businesses.
Further, in two years, it has nearly doubled processing volumes to over $2 billion US dollars, according to Robert Anderson, partner at FTV Capital.
Anderson expects the Latin American e-commerce market to double by 2023.
Bazilian fintech Creditas, a São Paulo-based secured lending platform, announced a $231 million funding round in July and attained a valuation of $750 million.
However, the largest fintech startup in Latin America is credit card issuer Nubank.
[Related Story: Nubank, the Brazilian Fintech, Hits a Purple Patch ]
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