Advent International is a major global private equity firm that recently invested in Ebanx, a payments processor in Latin America. With the help of this investment, Ebanx will focus on offering more and better digital financial services to 20 million customers across the region. This move marks an important milestone for the Latin American fintech sector, as it confirms investors’ recognition of the significant opportunities for growth in the region.
This article will outline why Advent International chose to invest in Ebanx. It will also discuss how such investments can benefit investors and consumers in Latin America. Finally, it highlights why this could help advance the region’s financial inclusion and technological innovation.
Overview of Ebanx
Ebanx is a Brazilian payments firm that provides payment solutions and digital services in Brazil, Mexico, Argentina, and Colombia. Advent Capital invested $430 million in the firm before their IPO. This investment has made Advent Capital the majority shareholder in Ebanx.
Let’s discuss why Advent would greatly invest in this company.
Overview of the Company
Ebanx is a fast-growing fintech that allows global companies to offer payment methods typically used in Latin American countries. Founded in 2012 by Brazilian entrepreneurs João Generalesti and Thomaz Srougi, Ebanx provides a platform for customers who wish to purchase goods and services online and pay with local payment methods such as Boleto, OXXO and Spei.
The company has become especially renowned for its success in Brazil where it processes 43% of all ecommerce transactions. This is largely because many Latin American countries have large unbanked populations who must utilise cash for everyday purchases.
Global investors have taken notice of Ebanx’s massive growth and success, with Spanish private equity firm Advent International leading the way investing 250 Million dollars into the company in September of this year. In its latest round of investments, Advent international valued Ebanx at $1 billion with ambitious plans for expanding access to MercoPay services including credit cards, debit cards, direct debits and prepaid cards throughout Latin America; a watershed moment for both Advent International and Ebanx as they open new opportunities for trade between Latin America and the rest of the world.
Although founded 9 years ago, recent investments in technology combined with increased local access make Ebanx well positioned to be a leader in global payments across LatinoAmerica Latin America in years to come.
Ebanx’s Growth and Expansion
Advent International acquired a major stake in Ebanx in late 2019, a digital payment technology provider headquartered in Sao Paulo, Brazil. With this move Advent is looking to further support the company’s growth and expansion across Latin America.
Ebanx offers digital payment solutions throughout Brazil and other Latin American countries, comprehensive onshore processing and merchant services. This allows customers of Ebanx to streamline their online payments with easy-to-integrate APIs, allowing individuals or companies providing products or services within the region to get paid directly by customers.
Ebanx was founded in 2012 and has recently developed multiple business lines across the entire payments value chain: local processing; payouts; cards issuance; eWallets (or “virtual accounts”); and settlement solutions for international merchants targeting Latin American markets. The company offers more than 60 payment methods through its platform, ranging from direct debit to different types of credit cards and alternative payment methods like bank transfers and wallets.
Ebanx has experienced rapid expansion since its founding due to a sharp focus on customer satisfaction and innovative processes that allow for faster onboarding cycles for merchants. Additionally, Ebanx boasts an extensive network of banking partners across the region that allows it to offer creative payment solutions tailored to each country’s specific needs resulting in deeper market penetration and increased conversion rate for merchants utilising Ebanx’s payments solutions.
Advent invests $430 million in Brazil payments firm Ebanx before IPO
Advent International’s investment of $430 million in Brazil payments firm Ebanx before its IPO is a sign that the company sees potential growth in the market.
Ebanx is a payment processor that caters to Brazilians and companies wanting to do business in Brazil, providing an advantage in an increasingly connected global market.
Let’s look at why this investment on Advent’s part is beneficial.
Reasons for the Investment
Advent International has strategically invested in Brazilian payments firm Ebanx, which is focused on connecting global e-commerce merchants to growth markets across Latin America. This marks the eighth investment the private equity firm made from its $17.5 billion Advent Global Private Equity VIII fund.
Advent International is a global private equity investor that has invested in over 375 buyouts worth over $156 billion since its foundation in 1984. The firm has become one of the largest and most experienced investors in the private equity industry, raising over $49 billion throughout its history.
Ebanx is a cross-border payments company serving Latin American customers and allows merchants to streamline their operations and expand overseas. The company’s technology platform provides digital payment solutions that are both secure and compliant for businesses operating within several countries, including Mexico, Brazil, Argentina, Chile, Peru and Colombia. In addition, these solutions can process card payments from local consumers or direct payments from banks across Amazonia Latina.
Advent’s investment will build on Ebanx’s rapid growth over recent years by helping it further develop its portfolio of products and solutions and its strong market presence across multiple countries throughout Latin America. Through this investment, Advent is also helping expand Ebanx’s reach into other strategic relationships with major e-commerce merchants worldwide by providing them access to their rapidly expanding footprint in Latin America.
Benefits of the Investment
Advent’s investment in Ebanx provides several strategic benefits to both companies.
The partnership allows Ebanx to expand its product offering beyond the Brazilian market. The company can now apply the same successful payment solutions and strategies to other regions, providing greater access to payments and unlocking new growth opportunities.
Advent’s investment will also provide Ebanx with the funds to stay competitive and cutting-edge in a fast-paced sector, driving financial inclusion and merchant success across Latin America. With it has come access to accelerators, expertise and markets for both companies that will further growth opportunities in Brazil and internationally.
In addition, Advent is gaining entry into one of Latin America’s most vibrant fintech ecosystems while tapping into one of the world’s largest unbanked populations: Brazil alone accounts for more than fifty percent of all internet users in Latin America but only 40% of Brazilian households have a credit card or bank account. With Ebanx having become such an integral part of digital commerce in Latin American countries like Brazil, Mexico, Argentina and Colombia, this exposes Advent to billions of potential customers that banks have yet to serve.
