Sep 17, 2020

dLocal becomes Latin America’s latest fintech unicorn

dLocal
Latin America
Fintech
General Atlantic
William Girling
2 min
Montevideo, Uruguay-based fintech dLocal has achieved a valuation of US$1.2bn, making it Latin America’s latest fintech unicorn
Montevideo, Uruguay-based fintech dLocal has achieved a valuation of US$1.2bn, making it Latin America’s latest fintech unicorn...

Montevideo, Uruguay-based fintech dLocal has achieved a valuation of US$1.2bn, making it Latin America’s latest fintech unicorn.

Not only is it one of the continent’s most highly valued fintechs it is also Uruguay’s first and (to date) only unicorn. 

The company reached the milestone following a $200m funding round led by previous investor General Atlantic, a New York equity growth firm.

dLocal specialises in cross-border payment solutions in the Latin America, Asia and Africa markets. Since its inception in 2016, the company has maintained consistent profitability and growth and now serves 450 merchants across 20 countries.

Helping emerging markets

dLocal counts Amazon, Nike, Uber and Spotify among its high-profile customers. In fact, at the beginning of September, the latter company announced that it would be using dLocal’s 360 payment platform to make its music streaming service available to customers is Argentina, Mexico, Chile and other locations in Latin America.

“We are expanding access and helping those in emerging markets connect to ecommerce, building reliable payment technology tailored to specific local needs, constantly improving our products and growing our global footprint,” said Sebastián Kanovich, CEO of dLocal.

“Adding new investors of Addition’s caliber is a testament to dLocal’s long-term potential,” he added. “We’re excited to welcome them to our team and look forward to their support as we drive new product development and market expansion.”

Latin America: is fintech on the rise?

Following the 200% growth in the 2019 Latin American sector (from $700m in 2018 to $2.1bn the next year), fintech appears to be accelerating rapidly. 

Its capacity for democratising finance and creating foundational infrastructure to boost community welfare has already been demonstrated in Africa, and there is no reason to think that a similar level of success will not be found in Latin American also.

São Paulo-based Nubank is one of the most successful and valuable companies in the digital banking sector and is proving, along with dLocal, that the continent is more than capable of equaling markets in the US, Europe and APAC in terms of innovation.

Martín Escobari, Co-President, Managing Director, and Head of Latin America at General Atlantic, stated that his company recognised the value inherent in dLocal’s business model and felt confident of its ability to effect significant change.

“From our previous work with leading global fintechs, we know the payment solutions sector well and can bring deep, hands-on experience as dLocal establishes itself as a partner of choice for global merchants seeking bespoke solutions tailored specifically to their needs in a range of unique geographies. 

“We believe strongly in dLocal’s potential as a transformative company in the emerging markets space.”

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Jun 17, 2021

Tink partners with Novalnet AG for open banking payments

novelnet
Tink
Fintech
Digitalpayments
2 min
Novalnet AG will collaborate with Tink for the fintech’s payment initiation services

The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.

Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide. 

According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform. 

The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly. 

Novalnet partnership with Tink

By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe. 

The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021. 

Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties. 

“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants." 

Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”

He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”

Image credit: Novalnet AG

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