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Brazilian Fintech Ebanx expands into Indian digital payments market

September 18, 2023
Por
Emmanuel Abara Benson
Emmanuel Abara Benson
Business News Editor
📷
Forbes Brasil
The project symbolises one of the largest Fintech investments ever made in developing economies, backed by solid investment from Advent International LP and FTV Capital, two influential investors.
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Ebanx Ltda, a Brazil-based payment company, is primed to extend its operational tentacles into India, one of the world’s largest consumer markets.

This move, slated for completion by the end of this year, is a strategic step to tap into India’s burgeoning Unified Payments Interface (UPI) system, used by approximately 22% of the nearly 1.4 billion populace.

This endeavor represents one of Ebanx’s most significant investments in emerging markets and is backed by powerhouse investors Advent International LP and FTV Capital.

Ebanx’s Journey and Strategic Positioning

Born in 2012, Ebanx has been an influential player in facilitating cross-border transactions for high-profile clients, including Spotify, Airbnb, and Alibaba Group. In its home country, the company has established a strong presence within the PIX system – Brazil’s central bank-controlled instant payments platform. PIX is now a more commonly used payment method than credit cards in Latin America’s most substantial economy, further bolstering Ebanx’s position in the market.

The overarching mission of Ebanx is to equip merchants with a consolidated platform that accommodates various payment methods preferred by consumers. However, the company has yet to disclose the multinational merchants who will be onboarded initially or the specific details concerning its operational team in Mumbai.

Growth Trajectory and Future Plans

Since its inception, Ebanx has experienced impressive growth, with its payment volume escalating by 44% in 2022. In 2021, Advent invested $430 million for a minority stake in the company, with some of these funds earmarked to assist with a potential US initial public offering (IPO). This IPO, which could value Ebanx at around $10 billion, was delayed last year but remains a feasible milestone within the next one to three years.

Cost-Cutting Measures and Expansion to Africa

Over the past 18 months, Ebanx has implemented several cost-cutting measures, reducing its workforce from 1,300 to 800 and discontinuing certain projects. The company relies on its working capital for investments and has not sought new investors or taken on debt. Alongside its expansion into India, Ebanx has also been growing its foothold in Africa, with operations in South Africa, Kenya, and Nigeria. The company has plans to venture into eight additional African countries, where mobile payment methods are of paramount importance due to the low credit card penetration.

Latin America: A Key Gateway for Global Merchants

Despite its global expansion, Ebanx’s home market of Latin America remains a crucial gateway for global merchants, especially those from China. The company has also been investing in executive talent for its leadership team, hiring from notable companies such as Google, iFood, Microsoft, and PayPal.

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.

Ebanx Ltda, a Brazil-based payment company, is primed to extend its operational tentacles into India, one of the world’s largest consumer markets.

This move, slated for completion by the end of this year, is a strategic step to tap into India’s burgeoning Unified Payments Interface (UPI) system, used by approximately 22% of the nearly 1.4 billion populace.

This endeavor represents one of Ebanx’s most significant investments in emerging markets and is backed by powerhouse investors Advent International LP and FTV Capital.

Ebanx’s Journey and Strategic Positioning

Born in 2012, Ebanx has been an influential player in facilitating cross-border transactions for high-profile clients, including Spotify, Airbnb, and Alibaba Group. In its home country, the company has established a strong presence within the PIX system – Brazil’s central bank-controlled instant payments platform. PIX is now a more commonly used payment method than credit cards in Latin America’s most substantial economy, further bolstering Ebanx’s position in the market.

The overarching mission of Ebanx is to equip merchants with a consolidated platform that accommodates various payment methods preferred by consumers. However, the company has yet to disclose the multinational merchants who will be onboarded initially or the specific details concerning its operational team in Mumbai.

Growth Trajectory and Future Plans

Since its inception, Ebanx has experienced impressive growth, with its payment volume escalating by 44% in 2022. In 2021, Advent invested $430 million for a minority stake in the company, with some of these funds earmarked to assist with a potential US initial public offering (IPO). This IPO, which could value Ebanx at around $10 billion, was delayed last year but remains a feasible milestone within the next one to three years.

Cost-Cutting Measures and Expansion to Africa

Over the past 18 months, Ebanx has implemented several cost-cutting measures, reducing its workforce from 1,300 to 800 and discontinuing certain projects. The company relies on its working capital for investments and has not sought new investors or taken on debt. Alongside its expansion into India, Ebanx has also been growing its foothold in Africa, with operations in South Africa, Kenya, and Nigeria. The company has plans to venture into eight additional African countries, where mobile payment methods are of paramount importance due to the low credit card penetration.

Latin America: A Key Gateway for Global Merchants

Despite its global expansion, Ebanx’s home market of Latin America remains a crucial gateway for global merchants, especially those from China. The company has also been investing in executive talent for its leadership team, hiring from notable companies such as Google, iFood, Microsoft, and PayPal.

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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