In 2020, Brazil's startup ecosystem experienced a record 174 mergers and acquisitions, particularly in the FinTech and T.I. sectors, driven by the need for digital transformation among traditional companies.

Target Information

The deal under consideration involves several startups in Brazil, notably focused on the sectors of FinTech and Information Technology (T.I.). In 2020, the startup ecosystem in Brazil witnessed a remarkable surge, concluding 174 merger and acquisition transactions, reflecting a staggering 410% growth over the last five years and a 160% increase compared to 2019. The increase in transactions has established these sectors as the most attractive within the Brazilian landscape, with each sector spearheading 22 mergers and acquisitions in that year.

Key factors driving this expansion include the growing maturity of the Brazilian startup ecosystem, which has begun producing innovative products and services that capture the interest of larger corporations. The interactions between traditional companies and startups have intensified, with established businesses recognizing the potential for innovation and process diversification via these emerging entities.

Industry Overview in Brazil

Brazil’s venture capital landscape in 2020 was characterized by unprecedented activity amidst the pandemic. Large corporations increasingly seek to digitalize their processes to maintain competitiveness, making the acquisition of

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Locaweb

invested in

Vindi

in 2020

in a Buy & Build / Roll-Up deal

Disclosed details

Transaction Size: $36M

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