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Thanks to the new Round C, the Brazilian WealthTech Warren gains encouragement for the growth of its business

July 5, 2022
Por
Maria Luíza Filgueiras
Maria Luíza Filgueiras
Repórter Especial na Valor Econômico e autora do livro “Na Raça”
📷
Dinheiro
The fintech company Warren has just closed the expansion of its Series C round, with new contributions from shareholders such as GIC and Kaszek and the addition of Citi Ventures to the company's capital.
Contenido para Usuarios 🔒

It is only the second Brazilian company in the U.S. bank's corporate venture capital portfolio, which, among dozens of startups in the portfolio, had only proptech Loft

The amount of additional capital is not disclosed by CEO Tito Gusmão, per confidentiality agreement with the funds, but he assures that there was an increase in valuation - in times of flat rounds and low round discussions. "We never had this discussion because the extension was already an option with negotiated conditions and that we decided to exercise," Gusmao tells

Warren enters international play with Apex platform.

Series C was announced by Warren in April last year, with R$300 million in financing. Citi Ventures had come to evaluate the company at the time, but the round was already practically closed.In the Series C extension, the company gains breath for the growth of its business.

But Warren is also planning to open a Series D round soon, and the CEO anticipates more laborious negotiations on value. "Given the timing of the market, sure, some funds tend to push harder in investment talks, but we see a lot of growth opportunities and want to raise cash to invest in the brand, the technology team and M&A," she says.

At the beginning of last year, Warren had R$3 billion under custody and jumped to R$18 billion in a year and expects to double in size. An eventual acquisition would help accelerate this path to the target. Gusmão has already been in talks with some investment consultancies and multifamily offices.

"We see a consolidation movement in this market, which ends up having two big players and we see ourselves as a third way," says the CEO, referring to XP Investimentos and BTG Pactual.

The main differential of the company in this dispute, defends the founder, is the model of origin without commission per product, with annual remuneration of the investment advisor to choose the best funds and assets according to the client's interest and not by financial incentive. At XP, the company has started working with both models in recent years, depending on what the client prefers.

The firm's business model and new expansion fronts should help in the next round talks. "We've always been a little bit against the tide of hyper-growth, that sudden acceleration to bring money back in the future. Warren is a cash generator and supports the thesis of sustainable growth," says Gusmão.
For him, this is a requirement (or consequence) of the company's core business. "Investment money is the most difficult to conquer.

It depends on trust, construction, transparency and financial education so that the client places a small part of his portfolio with us, and gradually increases it.

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.

It is only the second Brazilian company in the U.S. bank's corporate venture capital portfolio, which, among dozens of startups in the portfolio, had only proptech Loft

The amount of additional capital is not disclosed by CEO Tito Gusmão, per confidentiality agreement with the funds, but he assures that there was an increase in valuation - in times of flat rounds and low round discussions. "We never had this discussion because the extension was already an option with negotiated conditions and that we decided to exercise," Gusmao tells

Warren enters international play with Apex platform.

Series C was announced by Warren in April last year, with R$300 million in financing. Citi Ventures had come to evaluate the company at the time, but the round was already practically closed.In the Series C extension, the company gains breath for the growth of its business.

But Warren is also planning to open a Series D round soon, and the CEO anticipates more laborious negotiations on value. "Given the timing of the market, sure, some funds tend to push harder in investment talks, but we see a lot of growth opportunities and want to raise cash to invest in the brand, the technology team and M&A," she says.

At the beginning of last year, Warren had R$3 billion under custody and jumped to R$18 billion in a year and expects to double in size. An eventual acquisition would help accelerate this path to the target. Gusmão has already been in talks with some investment consultancies and multifamily offices.

"We see a consolidation movement in this market, which ends up having two big players and we see ourselves as a third way," says the CEO, referring to XP Investimentos and BTG Pactual.

The main differential of the company in this dispute, defends the founder, is the model of origin without commission per product, with annual remuneration of the investment advisor to choose the best funds and assets according to the client's interest and not by financial incentive. At XP, the company has started working with both models in recent years, depending on what the client prefers.

The firm's business model and new expansion fronts should help in the next round talks. "We've always been a little bit against the tide of hyper-growth, that sudden acceleration to bring money back in the future. Warren is a cash generator and supports the thesis of sustainable growth," says Gusmão.
For him, this is a requirement (or consequence) of the company's core business. "Investment money is the most difficult to conquer.

It depends on trust, construction, transparency and financial education so that the client places a small part of his portfolio with us, and gradually increases it.

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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País de origen:
Headquarters:
Porto Alegre
Monto inversión:
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Ronda financiación:
Series C
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