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QI Tech – latest Brazilian unicorn to lead the LATAM charge

In May 2024 , Brazil ’ s QI Tech achieved unicorn status with a $ 50m series B extension led by leading global investor General Atlantic .

The extension , pushing the firm beyond the $ 1 billion valuation mark , followed an investment of US $ 200 million ( R $ 1 billion ) by General Atlantic in October 2023 through a Series B round .

“ By investing in fast developing fintechs , LATAM is quickly securing itself as the next big leader when it comes to talent and potential for developing companies .

“ Where once the region was struck off as immature , in 2024 , many should be looking to LATAM , particularly Brazil and Mexico , as leaders in fintech investments and technology advancement . Growth in LATAM is already outpacing more established regions – particularly in the fintech sector driven by the need for financial inclusion solutions .”

QI Tech , the first Direct Credit Company ( SCD ) approved by the Brazilian Central Bank , plans to leverage the new capital to further expand its leading product position and explore strategic opportunities .

Baber agrees that the attribution of the popularity and growth of the region is due to a combination of its tech-driven workforce and its proximity to the US .

Pedro Mac Dowell , CEO and founder , QI Tech , said : “ QI Tech is taking intentional , strategic steps to support our expansion and create a comprehensive suite of financial infrastructure products that better address client needs – achieving unicorn status is reflection of the hard work .”

Set up in 2018 and based in Sao Paulo , QI Tech enables banks , fintechs and non-financial firms to integrate digital banking tools such as digital onboarding , facial recognition , credit scoring , digital account opening , wire transfers , Pix payments and credit underwriting .

In 2021 , after two years of operation , QI Tech raised a Series A round of US $ 50 million led by the Sovereign Investment Fund of Singapore ( GIC ).

QI Tech has proved been profitable since its first year of operation .

General Atlantic had been tracking QI Tech for some time – impressed by the vision of the Q Tech leadership team – before making its move , seeing a company that enabled the development of credit , payment and banking solutions for a range of asset managers , corporates and fintechs by building native connectivity with the national financial system as well as through a modular API .

Luiz Ribeiro , Managing Director and Co-Head of General Atlantic ’ s Brazil office , said QI Tech was “ uniquely positioned ” as a challenger to existing incumbent solutions .

“ QI Tech has momentum to become a leading , diversified player in Brazil ’ s financial infrastructure ecosystem as opportunities for digital payments and credit adoption continue to emerge .”

“ Gen Z and Millennial demographics are not only in favour of new fintech developments for their convenience . Their demographics are also more tech-savvy than previous generations , and hungrier to embrace the future of technology and further careers in IT .

“ Similarly , real-time collaboration with the US is easier due to the same time zones , meaning greater investment towards a more local region in comparison to outsourcing across the globe . Business relations become stronger when there is a greater ability to interact within work hours .

“ LATAM governments and regulators have proven to be more supportive of fintech , crypto and new finance developments , as seen previously with El Salvador . Fintech needs an appetite for change and the next big technology to thrive , and thus the region ’ s alignment with those values has made it particularly powerful for fintech unicorns .

“ This is clear for Brazil , which is leading the pack as a great source of the best in fintech developments . No doubt , with greater ongoing support from improved education , government initiatives and encouraging digital innovation will the country see even more growth in their fintech scene for the market to capitalise on .” p

34 INTELLIGENTCIO LATAM www . intelligentcio . com