Celcoin, a pioneering force in the Banking as a Service (BaaS) sector of Brazil’s financial technology landscape, has announced a substantial milestone with the closing of a US$125 million investment round led by Summit Partners, a global growth equity firm. This funding round also includes participation from existing investor Innova Capital and financial technology executive John Coughlin, emphasizing the market’s confidence in Celcoin’s strategic direction and growth potential.
Founded in 2016, Celcoin has carved a niche by providing robust financial infrastructure services tailored for banks, fintechs, and enterprises across Brazil. Specializing in payments, banking, and lending solutions, Celcoin enables customized embedded finance offerings that cater to diverse segments and stages of business development. The company boasts a clientele of over 400 financial institutions and more than 5,000 non-financial enterprises, leveraging cutting-edge technology and stringent security protocols to support their clients’ financial service innovations.
The Brazilian fintech sector has been at the forefront of global innovation, notably with the introduction of the Central Bank of Brazil’s groundbreaking initiatives such as the instant payment system Pix in October 2020. This system has rapidly grown, handling up to 5 billion transactions monthly by 2024. Open Banking, introduced in 2021, has further enhanced financial transparency and accessibility, with over 22 million customers opting to share their data across participating institutions. Celcoin has positioned itself as a leader in Open Banking solutions for licensed entities, contributing significantly to the sector’s evolution.
Marcelo França, CEO of Celcoin, expressed enthusiasm about the investment, stating, “Celcoin’s technology empowers banks, fintechs, and corporations to integrate financial products seamlessly into their ecosystems. We believe this represents the future of the financial sector, and we are thrilled to lead this transformative charge.” The funding infusion will accelerate Celcoin’s technological advancements and innovation initiatives while exploring organic growth avenues and potential mergers and acquisitions.
Commenting on the investment, Alberto Reyes from Summit Partners remarked, “We are committed to supporting economic development in Brazil through financial empowerment, and Celcoin exemplifies this mission. We are confident that our investment will further bolster Celcoin’s position as a catalyst for financial innovation.”
In the first quarter of 2024 alone, Celcoin achieved an impressive US$63 million in annual recurring revenue, marking a 140% increase from the previous year. The company processes over 200 million Pix transactions monthly, underscoring the reliability and scalability of its platform. In addition to enhancing its core products, Celcoin has completed strategic acquisitions including Galax Pay, Flow Finance, Finansystech, and Reg+, strengthening its market presence and service offerings since 2022.
John Coughlin, Executive-in-Residence at Summit Partners and newly appointed Celcoin Board member, praised Celcoin’s agility and innovation, stating, “We are impressed by Celcoin’s rapid product development and platform scalability. We look forward to supporting their expansion across Brazil and Latin America.”
Christopher J. Dean and Michael Esrubilsky from Summit Partners will also join the Celcoin Board, underscoring Summit’s commitment to driving Celcoin’s growth strategy forward. Innova Capital, a longstanding supporter of Celcoin, reaffirmed its confidence in the company’s future prospects, highlighting the transformative impact of Celcoin’s technological infrastructure in Brazil’s evolving payments landscape.
