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Brazilian Regtech Fintech Celcoin raises US$18M to be a 'one-stop-shop' for banking and financial services

April 8, 2022
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Celcoin - which provides financial and banking technology infrastructure - has just received a R$ 85 million (US$18m) contribution from Innova Capital,
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a manager that has already invested in companies such as Movile, ClearSale, and Bom Pra Crédito, in addition to Alpha Capital's Spac, focused on technology companies.

The new round comes eight months after Celcoin raised R$55 million, bringing Sinqia - via Torq Ventures, the company's CVC - into the captable. In the list of investors, the fintech also has the manager Vox Capital and boostLAB, from BTG Pactual.

With a business already in 'breakeven', fintech will now step on the accelerator and brings to captable a management company specialized in growth: "We already had a relationship with them. Now is the chance to step on the accelerator even more and reinforce the consolidation strategy," says Marcelo França Corrêa, CEO and co-founder of Celcoin, in an interview with Finsiders.

"We want to be a 'one-stop-shop' for banking and financial services. Our gateway was the world of services. Today we are more positioned as a banking services infratech, very 'componetized'."

The consolidation strategy began to take shape earlier this year, with two inorganic moves. In January, it bought Galax Pay, which has recurring billing and subadquiring solutions. A month later, it acquired Flow Finance, to move into credit.

"We are talking to several startups. We have a 'pipe' trying to find good products to add to the shelf, that can take advantage of our distribution," says Marcelo. "We have some conversations, yes, in an advanced stage," he says, without opening details for strategic reasons.

Celcoin has a financial technology and banking infrastructure that includes APIs to enable Pix transactions, Open Banking, bill payments, taxes, cell phone and gift card recharges, automatic debit, ATM withdrawals, and transfers.

With the acquisition of Flow, it also started to offer infrastructure for companies that want to offer credit (working capital, private consigned loans, personal loans, 'buy now pay later', and others).

Expansion
Last year, the fintech transacted R$25 billion, more than double compared to 2020. Per month, it processes R$3 billion, on average. The expectation is to reach a transacted volume of R$45 billion this year.

Last month, the annualized recurring revenue (ARR) exceeded R$100 million.

With more than 200 customers, including banks, fintechs, brokerage houses, ERPs, marketplaces, telephone operators, and loyalty companies, Celcoin already serves 20 publicly traded companies and seven unicorns.

Its base includes, for example, Inter, Ebanx, PagBank, Mercado Pago, BTG Pactual, Banco Pan, Digio, as well as non-financial companies such as Intelbras and Grendene.

In December, as Finsiders exclusively revealed, the company was authorized to operate as an IP (Payment Institution) in the form of electronic money issuer and payment transaction initiator (ITP or PISP), a figure created by the regulator to operate in phase 3 of Open Banking.

The fintech is in the final stages of integrations with the CIP (Interbank Payment Chamber), the SPB (Brazilian Payment System) and the SPI (Instant Payment System), and is also completing tests to start operating as an ITP.

"I would say we are 95% testing complete. We want to be the leading regulated player offering infrastructure in Open Banking for those who want to use data connections and for those who want to initiate payments."

On the flip side, the fintech also puts an app "in the hand" of small retailers for them to offer financial products and services to their customers.

In all, there are nearly 40,000 active points throughout Brazil, with a higher concentration in the North and Northeast regions, as well as in inland cities, suburbs and communities. "All [merchants] are now being enabled with Pix Saque," Marcelo says.

Celcoin was founded in 2016 by Marcelo and Adriano Meirinho. With a degree in IT, an MBA in finance, and a PhD in artificial intelligence and data mining (AI), Marcelo made his career in the technology area of banks and brokerage houses, with the last experience as CTO of Lemon Bank, an institution absorbed by Banco do Brasil in 2009.  Meirinho was the CMO of Catho, where he worked for 13 years, and CMO and CTO of furniture company Oppa.

Market
In the financial services and banking infrastructure space in general, the list of competitors is long and includes players like fintechs Dock (which has been making acquisitions to grow in Latin America), FitBank (invested by J.P. Morgan), Zoop (which has Movile as a shareholder), and Swap, among others.

Banks of different sizes have also been advancing in BaaS structures and their derivations, such as CaaS (credit as a service). These are institutions such as BV, Original, ABC Brasil, BTG Pactual, Itaú, HSBC, Alfa, Modal, Genial, and others.

The advance of this segment is directly related to the trend of 'embedded finance', a movement that tends to intensify with the implementation of Open Finance.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

a manager that has already invested in companies such as Movile, ClearSale, and Bom Pra Crédito, in addition to Alpha Capital's Spac, focused on technology companies.

The new round comes eight months after Celcoin raised R$55 million, bringing Sinqia - via Torq Ventures, the company's CVC - into the captable. In the list of investors, the fintech also has the manager Vox Capital and boostLAB, from BTG Pactual.

With a business already in 'breakeven', fintech will now step on the accelerator and brings to captable a management company specialized in growth: "We already had a relationship with them. Now is the chance to step on the accelerator even more and reinforce the consolidation strategy," says Marcelo França Corrêa, CEO and co-founder of Celcoin, in an interview with Finsiders.

"We want to be a 'one-stop-shop' for banking and financial services. Our gateway was the world of services. Today we are more positioned as a banking services infratech, very 'componetized'."

The consolidation strategy began to take shape earlier this year, with two inorganic moves. In January, it bought Galax Pay, which has recurring billing and subadquiring solutions. A month later, it acquired Flow Finance, to move into credit.

"We are talking to several startups. We have a 'pipe' trying to find good products to add to the shelf, that can take advantage of our distribution," says Marcelo. "We have some conversations, yes, in an advanced stage," he says, without opening details for strategic reasons.

Celcoin has a financial technology and banking infrastructure that includes APIs to enable Pix transactions, Open Banking, bill payments, taxes, cell phone and gift card recharges, automatic debit, ATM withdrawals, and transfers.

With the acquisition of Flow, it also started to offer infrastructure for companies that want to offer credit (working capital, private consigned loans, personal loans, 'buy now pay later', and others).

Expansion
Last year, the fintech transacted R$25 billion, more than double compared to 2020. Per month, it processes R$3 billion, on average. The expectation is to reach a transacted volume of R$45 billion this year.

Last month, the annualized recurring revenue (ARR) exceeded R$100 million.

With more than 200 customers, including banks, fintechs, brokerage houses, ERPs, marketplaces, telephone operators, and loyalty companies, Celcoin already serves 20 publicly traded companies and seven unicorns.

Its base includes, for example, Inter, Ebanx, PagBank, Mercado Pago, BTG Pactual, Banco Pan, Digio, as well as non-financial companies such as Intelbras and Grendene.

In December, as Finsiders exclusively revealed, the company was authorized to operate as an IP (Payment Institution) in the form of electronic money issuer and payment transaction initiator (ITP or PISP), a figure created by the regulator to operate in phase 3 of Open Banking.

The fintech is in the final stages of integrations with the CIP (Interbank Payment Chamber), the SPB (Brazilian Payment System) and the SPI (Instant Payment System), and is also completing tests to start operating as an ITP.

"I would say we are 95% testing complete. We want to be the leading regulated player offering infrastructure in Open Banking for those who want to use data connections and for those who want to initiate payments."

On the flip side, the fintech also puts an app "in the hand" of small retailers for them to offer financial products and services to their customers.

In all, there are nearly 40,000 active points throughout Brazil, with a higher concentration in the North and Northeast regions, as well as in inland cities, suburbs and communities. "All [merchants] are now being enabled with Pix Saque," Marcelo says.

Celcoin was founded in 2016 by Marcelo and Adriano Meirinho. With a degree in IT, an MBA in finance, and a PhD in artificial intelligence and data mining (AI), Marcelo made his career in the technology area of banks and brokerage houses, with the last experience as CTO of Lemon Bank, an institution absorbed by Banco do Brasil in 2009.  Meirinho was the CMO of Catho, where he worked for 13 years, and CMO and CTO of furniture company Oppa.

Market
In the financial services and banking infrastructure space in general, the list of competitors is long and includes players like fintechs Dock (which has been making acquisitions to grow in Latin America), FitBank (invested by J.P. Morgan), Zoop (which has Movile as a shareholder), and Swap, among others.

Banks of different sizes have also been advancing in BaaS structures and their derivations, such as CaaS (credit as a service). These are institutions such as BV, Original, ABC Brasil, BTG Pactual, Itaú, HSBC, Alfa, Modal, Genial, and others.

The advance of this segment is directly related to the trend of 'embedded finance', a movement that tends to intensify with the implementation of Open Finance.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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