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Brazilian Fintech iugu receives investment of US$ 22 million led by Goldman Sachs to grow its payments automation platform for business

September 14, 2020
Por
Startupi
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Startupi nasceu em 2008 para construir a comunidade brasileira de startups com informação.
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portalerp.com
Iugu, a Brazilian fintech of means of payment and financial automation platform for companies, announced that it is receiving R $ 120 million through an investment round led by Goldman Sachs' Merchant Banking, the bank's proprietary investment arm.
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The round, expected to be initially smaller, was extended after a few months, due to the strong performance of the company and plans to accelerate its growth. For Goldman Sachs' Merchant Banking, which is one of the main investors in fintechs in the world, this will be the first investment in the equity of a company in this segment in Brazil.

The resources of this contribution will allow iugu to expand the product offer, accelerate the hiring of talents and strengthen its capital structure.

“Since our foundation, we have had the fundamental purpose of making financial management uncomplicated for companies in Brazil, through an intelligent and easy to use platform. We believe that, with Goldman Sachs as an investor, we will be able to accelerate our next growth cycle. Working with them has already been an incredible experience. The Goldman team has supported us in all relevant initiatives, from attracting talent to connections with other companies in its portfolio around the world, and also adopting global best practices on various topics. They are investors who really dedicate quality time in the process of creating value together with us ”, says Patrick Negri, founder of iugu.

Iugu provides automated solutions for corporate customers throughout the financial cycle, including issuing slips, processing payments and reconciling invoices paid with accounts receivable. The fintech platform processes several payment methods and offers split payment and collection recurrence services, all automated through APIs or in a cloud environment.

Iugu's solutions are flexible and easily adaptable to different business models and companies, regardless of their size or technological maturity level. “We are very impressed with the work of the entire team. The performance of all of them and the constant focus on improving the customer experience are iugu's great differentials. We are honored to have the opportunity to invest in the company and support its growth, ”says David Castelblanco, director responsible for Private Equity investments in Latin America for the Merchant Banking Division at Goldman Sachs.

“What initially attracted us to iugu was its impressive payment platform. However, as we move forward in our understanding of the value proposition, we realize that the company's success is driven by its problem solving DNA for customers, rather than simply being a provider of payment methods. We are very happy to work with Patrick and his team ”, says Cristiano Camargo, director of the Merchant Banking Division at Goldman Sachs in Brazil.

On August 26, the Central Bank authorized iugu to operate in Brazil as a regulated Payment Institution, an important milestone for the company. With this license, fintech will be able to directly offer new services through its platform, such as receiving electronic transfers and automatic payment of bills and taxes, in addition to the option of a debit card.

In recent years, iugu has been rapidly increasing its volume of processed transactions and expects its growth to accelerate as a result of the new investment and the license recently granted by the Central Bank.

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.

The round, expected to be initially smaller, was extended after a few months, due to the strong performance of the company and plans to accelerate its growth. For Goldman Sachs' Merchant Banking, which is one of the main investors in fintechs in the world, this will be the first investment in the equity of a company in this segment in Brazil.

The resources of this contribution will allow iugu to expand the product offer, accelerate the hiring of talents and strengthen its capital structure.

“Since our foundation, we have had the fundamental purpose of making financial management uncomplicated for companies in Brazil, through an intelligent and easy to use platform. We believe that, with Goldman Sachs as an investor, we will be able to accelerate our next growth cycle. Working with them has already been an incredible experience. The Goldman team has supported us in all relevant initiatives, from attracting talent to connections with other companies in its portfolio around the world, and also adopting global best practices on various topics. They are investors who really dedicate quality time in the process of creating value together with us ”, says Patrick Negri, founder of iugu.

Iugu provides automated solutions for corporate customers throughout the financial cycle, including issuing slips, processing payments and reconciling invoices paid with accounts receivable. The fintech platform processes several payment methods and offers split payment and collection recurrence services, all automated through APIs or in a cloud environment.

Iugu's solutions are flexible and easily adaptable to different business models and companies, regardless of their size or technological maturity level. “We are very impressed with the work of the entire team. The performance of all of them and the constant focus on improving the customer experience are iugu's great differentials. We are honored to have the opportunity to invest in the company and support its growth, ”says David Castelblanco, director responsible for Private Equity investments in Latin America for the Merchant Banking Division at Goldman Sachs.

“What initially attracted us to iugu was its impressive payment platform. However, as we move forward in our understanding of the value proposition, we realize that the company's success is driven by its problem solving DNA for customers, rather than simply being a provider of payment methods. We are very happy to work with Patrick and his team ”, says Cristiano Camargo, director of the Merchant Banking Division at Goldman Sachs in Brazil.

On August 26, the Central Bank authorized iugu to operate in Brazil as a regulated Payment Institution, an important milestone for the company. With this license, fintech will be able to directly offer new services through its platform, such as receiving electronic transfers and automatic payment of bills and taxes, in addition to the option of a debit card.

In recent years, iugu has been rapidly increasing its volume of processed transactions and expects its growth to accelerate as a result of the new investment and the license recently granted by the Central Bank.

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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