Payments giant Visa Inc on Wednesday agreed to acquire Brazilian fintech platform Pismo for $1 billion in cash to expand its footprint in Latin America, a vote of renewed confidence in the region amid a funding slowdown.<\/p>\n
The Pismo deal is the largest fintech exit in Latin America since Nubank went public in late 2021 and the largest disclosed startup exit so far this year.<\/p>\n
For Visa, the world’s largest payments processor, it is its first major takeover since 2021 when it bought European open banking platform Tink for $2.2 billion as well as British cross-border payments provider Currencycloud.<\/p>\n
Sao Paulo-based Pismo’s cloud-based platform for financial institutions hosts more than 70 million accounts and transacts more than $200 billion a year, providing the technology through which clients can issue Visa and Mastercard cards.<\/p>\n
Mastercard was reported earlier this year to have also been interested in the acquisition of the banking infrastructure startup. It did not immediately reply to a request for comment.<\/p>\n
The acquisition comes alongside an 82% year-on-year drop in venture funding in Latin America in May, according to data group Sling Hub, as high interest rates and fears of a recession shook up global markets and rocked tech valuations.<\/p>\n
As part of the deal, which is expected to close by the end of the year, Pismo will retain its current management team, Visa said.<\/p>\n
The seven-year-old company was founded by entrepreneurs Ricardo Josua, Daniela Binatti, Juliana Binatti and Marcelo Parise. It has operations in Europe, North America, Southeast Asia, India and Latam.<\/p>\n
Pismo has raised over $110 million from investors including Japan’s SoftBank Group Corp, Amazon.com Inc, venture capital firm Accel, as well as Headline, which first invested in the seed round and owns about 30% of the firm. (Reporting by Jaiveer Shekhawat and Mehnaz Yasmin in Bengaluru, Isabel Woodford in Mexico City, and Krystal Hu in Toronto; Editing by Maju Samuel, Leslie Adler and Michael Perry)<\/p>\n
<\/p>\n
Finance.yahoo.com<\/p>\n","protected":false},"excerpt":{"rendered":"
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