Bernd Becker 
EBANX, a fintech leader in Latam and Brazil, recently announced the closing of its Series D round of equity financing, bringing the total invested to an impressive $430M. This round was led by Advent International, one of the world’s largest and most experienced global private equity investors, further solidifying the startup’s position as the leading digital payments platform in Latin America.
Let’s get into the details of this new investment.
Overview of EBANX
EBANX is an international payments platform that operates in Latin America, enabling merchants to accept online payments from customers in their native currencies. Founded by brothers Erick and Andre Bei in 2012, the company currently has banking operations in Brazil, Mexico and Argentina, with plans to launch its services across 13 countries. With its mission of connecting people in emerging markets with the global economy, the company has a staff of over 1000 people based out of offices located in Florianópolis (Brazil), São Paulo (Brazil), Monterrey (Mexico), Buenos Aires (Argentina) and Dallas.
In 2020, EBANX announced a $430 million investment from Advent International, enabling the company to build a broader range of local payment methods and increase its presence throughout Latin America. The funding will also enable EBANX to strengthen its technologies and products, accelerate growth and deliver greater value to merchants and customers across the region.
Overview of Advent
Advent International is one of the world’s largest and most experienced global private equity investors. Founded in 1984, Advent manages $54 billion in assets across 12 countries, specialising in buyouts, growth capital and venture capital investments primarily in Europe and Latin America. Advent has invested more than €1 billion into Brazilian businesses since 1995.
Advent focuses on driving long-term performance through operational improvement and growth investments to deliver value for its portfolio companies worldwide. This investment marks a significant milestone for EBANX as it embarks on the next stage of its growth story. The strategic partnership with Advent will provide EBANX with additional resources to build a global payments platform and give them access to experience and connections within the payments space.
Advent Backs Brazilian FinTech EBANX In $430 Million Deal
Brazil-based FinTech EBANX announced that it has secured a $430 million investment from Advent, a global private equity firm. This investment marks the biggest venture capital funding round in Latin American FinTech history and will help EBANX expand its reach across the country.
This article will provide an overview of the investment details and the significance of this move.
Amount of the investment
EBANX, a global payment solutions provider in Latin America, announced that it has secured $430 million in an investment from private equity firm Advent International. The funds will accelerate the company’s growth plans, enhance financial and operational capabilities and expand Latin American operations into new markets.
The $430 million equity funding is structured as a combination of primary capital of up to $250 million and secondary proceeds of approximately $180 million. The investors who committed to the secondary transaction included funds advised by GGV Capital, JPMorgan Asset Management and Redpoint eventures. Founded in 2012, EBANX has received more than $300 million in total capital investments over its nine year history with its existing shareholders making additional investments in this round.
Advent International leads the Series D round with participation from existing investors Accel, B Capital Group, Global Founders Capital (GFC), IFC International Finance Corporation (IFC) – World Bank Group and Qualcomm Ventures LLC. The proceeds from this investment will strengthen EBANX’s technology infrastructure and help expand into new markets in Latin America while facilitating further product development and working capital needs for current solutions.
Purpose of the investment
EBANX, a payments processor and fintech firm specialising in facilitating transactions for Latin American merchants, announced a USD 430 million investment from venture capital firm Advent International. The funding comes as a primary equity capital raise and signals Advent’s third participation in an EBANX equity round.
This investment will enable EBANX to further scale its operations and expand its financial ecosystem in Latin America. The company looks to continue globalising its payment processing services by leveraging the expertise of advent’s team of local experts to continue improving services for its clients. In addition, it will use this new capital to focus on expanding their merchant base and introducing new products such as business-to-business (B2B) payment solutions, loan offerings, and its popular credit programs. Finally, as part of the investment efforts, EBANX will enter into new strategic partnerships with leading global players to further expand their presence throughout South America.
Impact of the Investment
The $430 million investment in Brazilian FinTech EBANX from Advent is a major milestone for the company, as it marks the largest equity investment in Latin America this year.
This investment will help EBANX expand its global footprint and further its mission of connecting people worldwide to the digital economy.
In this article, we’ll explore the impact of the investment and how it will help EBANX grow.
Benefits for EBANX
The investment of $430 million received by EBANX will present several significant benefits for the company.
Firstly, this capital injection will enable EBANX to expand its presence within Latin American markets and millions of people who do not have access to financial services. Secondly, by securing such a large investment from seven renowned institutional investors, the company has signalled that it is attractive and can provide long-term payback from its products.
Thirdly, the move secures EBANX as a major player in global payments with an established business model and solidified technology capabilities. Fourthly, the investment further strengthens its existing operational structure by streamlining wider objectives for Ebanx’s team members such as product expansion and new development initiatives in different markets.
Lastly, bringing together various stakeholders with this latest partnership provides a culture of fresh ideas that fosters innovation in its products and initiatives. Consequently, this investment places EBANX in an advantageous position to seize opportunities on both regional and international levels in 2021.
Benefits for Advent
Advent International’s $430 million investment in payment service provider EBANX makes it one of Latin America’s biggest players in the FinTech industry. The capital injection will help EBANX to expand its operations, offering services across two more countries this year and continuing to invest in its platforms and products. This strategic move will provide multiple benefits for the Boston-based investment firm, some of which are described below.
Advent is looking to gain a foothold within the ever-growing Latin American market to become a major player in this robust region related to financial technology. Advent’s venture and growth teams have been actively seeking out investments. They believe EBANX is uniquely positioned to dominate e-commerce payments due to its wide networks of institutional partners, institutions, banks, and merchants.
The capital injection also provides Advent with significant strategic advantages such as access to new customer segments outside their traditional markets (especially in areas such as Brazil). Furthermore, they will have access to EBANX’ solid analytics capabilities that can be used for market research purposes or on new products launched by them. Lastly, the strong network of local payment processors already present throughout Latin America created by EBANX should help Advent increase its footprints across new geographies quickly and at a lower cost than competitors.
Future Plans
EBANX, Brazil’s leading financial technology company, has recently received $430 million from Advent International, the world’s largest private equity firm. This investment marks a major milestone for EBANX and will likely help them reach their future goals.
This article will explore the plans for EBANX with their new influx of funds.
EBANX’s plans for the future
Recent investment from Advent International has enabled EBANX to set their sights on further expansion and increased market penetration in the coming years. This comes hot on the heels of rapid growth, an international footprint spanning 16 countries, and strategic partnerships with major players like Amazon, Airbnb, Apple Pay and Mercado Pago.
EBANX plans to use the new influx of capital to bolster its technology infrastructure and invest further in artificial intelligence initiatives that will power its operations. This is expected to lead to improved payment experiences and cost savings for their partners over the long term. Furthermore, EBANX hopes to expand its geographical reach even further by deepening its presence in LATAM high-growth markets like Colombia, Argentina and Mexico while continuing to offer new cashless financial solutions like online payments, engaging loyalty programs and bank transfers.
By focusing on technological innovation and value-added services for their clients’ customer base and driving continued growth of Latin America’s digital economy, EBANX works towards realising a vision of a world where anyone can send money freely anywhere with just their mobile phone.
Advent’s plans for the future
Advent International, a global private equity investor, recently closed a $430 million investment into EBANX, a payment processing and financial technology company. This raises the total funded amount of EBANX to $490 million and values the Brazilian fintech at more than $2 billion.
With its latest investment, Advent will become EBANX’s largest shareholder and join its Board of Directors. This move follows the company’s growth in recent years in Brazil and its expansion across Latin America and into the United States. The firm’s current product mix includes payment solutions and fintech services such as consumer loans, merchant acquisition, electronic wallets, virtual banking cards and more.
With this new partnership, Advent looks forward to leveraging its expertise to continue EBANX’s impressive trajectory. The firm intends to assist further with strategic guidance for the company’s market entry process in new geographies; help the business professionalise corporate governance; provide valuable contacts for expanding into additional industries; anticipate current market changes; continue investing in financial technology innovations; support increased customer base acquisition through marketing promotions and campaigns; create open source networks for sharing industry experience derived from working with various large companies across multiple countries; facilitate connections that can result in valuable partnerships crossing industry/geographical boundaries; develop human capital initiatives focused on appointing talented professionals across all business levels.
