Advent International, one of the world’s largest private equity firms, has recently announced an investment of USD 430 million in Brazil’s Ebanx.
Ebanx is a leading digital financial services provider which helps hundreds of thousands of customers in Latin America, making them eligible for online payments, digital wallets, and more.
This investment will help Ebanx expand its business and reach into new markets.
Background of the investment
Advent International, one of the world’s largest and most experienced global private equity investors, announced on May 1st 2019 an important investment in EBANX. The US$ 320M capital injection is the largest international private equity investment ever carried out in Latin America.
EBANX is a leading fintech company established in 2012 that leverages financial technologies to offer solutions to companies and clients of Latin America who want to buy products and services from abroad. The company created a diversified portfolio of payment methods and technologies so local clients can buy cross-border easier than ever before with local payment methods such as Boleto Bancário, Online Banking (TED/DOC), online debit cards, Credit Cards (local and international) as well as Cash Payments in +8k physical locations throughout Brazil.
Since its foundation, EBANX has served more than 16 million customers by offering payment solutions that make it easier for them to shop in more than 30 countries worldwide with domestic currencies, local payment methods, supported by a top-notch payer support service for its customers. With offices across Brazil (Curitiba headquarters), Mexico City and Buenos Aires; this new debt funding will help EBANX expand its business even further across LatAm while consolidating solutions focused on Online Banking, Checkout page localization options that include Tax information like CPF or CNPJ when necessary as well as quick payments for Brazilian customers via Pay4B with same day transfers free of charge at more locations throughout Brazil.
Overview of Ebanx
Ebanx is an e-commerce business platform that enables merchants to process digital payments for customers in Latin America. The company was founded in 2012 to facilitate online transactions in countries where financial inclusion remains a challenge. Since its inception, Ebanx has grown rapidly to become a leading payment processor and the go-to payment solution for thousands of merchants across eighteen countries.
In 2020, Ebanx underwent a significant investment from Advent International, allowing the business to further expand its reach and services around Latin America and enter new markets across Europe. Advent’s investment reinforced Ebanx’s commitment to processing secure payments, while also pouring resources into deepening their commitment to helping enterprises tap into Latin American customers without establishing costly infrastructure within those markets.
The result? A comprehensive e-commerce platform that streamlines digital payments for various merchants and provides valuable insights into regional customer trends. This comprehensive approach helps companies meet their customers’ needs better, faster, and more cost efficiently than ever before.
Advent’s Investment
Advent International has just invested USD 430 million in Brazil’s Ebanx, a digital payments company. This investment will help Ebanx expand its business and increase its presence in the Latin American region.
Consider what this investment could mean for Ebanx and its customer base.
Purpose of the investment
Advent International, one of the world’s leading private equity firms, has announced its investment in Ebanx, a fintech firm based in Brazil. The size of the investment was not disclosed.
The investment aims to provide capital to support Ebanx’s growth plans and help it become the leading payments platform for LatAm consumers. With this investment, Advent’s vision for Ebanx is to help it expand its merchant base and processing capabilities, increase its suite of payment options, and develop innovative products across Latin America.
Ebanx has been growing rapidly since 2013, doubling its merchant base yearly and expanding into 13 new markets over the past two years alone. With this new capital injection from Advent alongside existing investments from companies such as PayPal Ventures and Crescent Cove Ventures, as well as other strategic partners such as Visa and Mastercard, Ebanx believes it will be able to continue its fast-paced expansion across Latin America.
Benefits for Ebanx
The significant investment from Advent International will help Ebanx expand its offerings. This includes providing more digital financial services to Latin America, launching new products and services, introducing new payment methods, increasing partnerships, and strengthening the company’s data-driven capabilities.
Furthermore, in addition to the capital infusion from Advent, Ebanx will also benefit from their vast international network of financial, strategic and operational resources. This network can help provide additional expertise in mergers & acquisitions (M&A) and strategy and operations overview.
Moreover, with Advent’s collection of experienced professionals specialising in payments domains – including transactions, technology infrastructure and delivering leading customer experiences – Ebanx stands to gain invaluable insights that can be used to drive greater business value for existing users and clients.
Ultimately, this investment will enable Ebanx to expand its presence across South America while continuing its long-term mission of providing immersive customer experiences through quality services that make payments easier.
Advent International Invests USD430m in Brazil’s Ebanx
According to recent reports, Brazilian financial technology company Ebanx has gained an additional USD 430 million from private equity firm Advent International. This is a part of a larger effort by Ebanx to expand its business in the Latin American market.
Let’s take a closer look at what this investment brings to Ebanx, and how it will help the company’s growth in the region.
Expansion plans
Ebanx, a financial technology company specialising in international online payments for Latin American countries, recently announced a $150 million investment from the venture capital firm Advent International, fueling plans for expansion into new markets.
The additional funding will help Ebanx strengthen and extend its presence across Brazil and other Latin American countries. The company will launch new products as they expand their geographic presence to include Mexico and Chile while exploring further opportunities within Brazil’s neighbouring countries.
Ebanx expects to go beyond traditional payment methods by rolling out innovative fintech solutions targeting regional markets. This could include non-banks and wallets and credit cards that allow local customers to make online payments with local currency for products or services purchased in other countries. Additionally, the company plans to build a suite of business-to-business (B2B) payments solutions specifically tailored for merchants of all sizes in the region.
The Advent International funding will further support Ebanx’s growth ambitions in expanding merchant acquisition and customer base. Ebanx is actively building cutting-edge products harnessing advanced technologies including machine learning and artificial intelligence capabilities to facilitate this growth strategy and ramp up operations across multiple national markets. The additional capital injection underneath lines this commitment further by consolidating resources to continue making policy improvements aimed at consumers and businesses throughout Latin America.
Impact on the Brazilian market
Advent International’s investment in Ebanx is expected to benefit the Brazilian market in numerous ways. First, the new capital will enable Ebanx to expand its core business and reach more Brazilian customers. This will give cardholders more payment options and increase access to cheaper products and services.
The increased flow of capital also allows Ebanx to strengthen its partnership network, enhancing coverage across Brazil’s e-commerce market, while providing merchants with an effective platform for customer acquisition. This could be especially beneficial for small local businesses who often lack the resources or capacity for international expansion and need reliable payment partners that offer safe, efficient services.
Furthermore, the joint venture will introduce new technology such as artificial intelligence-based real-time fraud prevention systems. This is expected to improve the safety of payments on Ebanx’s platform, creating a more secure environment for customers when making online purchases.
Overall, it is anticipated that Advent’s investment in Ebanx will strengthen the company’s presence in Brazil and drive greater financial inclusion through its payments platform, ultimately leading to improved customer experience for Brazilian consumers.