Global Growth Equity Firm Partners with Celcoin to Support Its Expansion and Financial Access Mission
Celcoin, a leading player in the Banking as a Service (BaaS) financial technology market, has announced a US$125 million investment led by global growth equity investor Summit Partners. Summit Partners has a robust history of collaborating with market-leading fintech companies, including EngageSmart (NYSE: ESMT), Corpay (NYSE: CPAY), and Calypso Technology. This investment round also includes participation from existing investor Innova Capital and experienced financial technology executive John Coughlin, formerly of Corpay. The new funding will fuel Celcoin’s expansion plans and support the development of innovative products to strengthen its leadership in the BaaS and embedded finance markets.
About Celcoin
Founded in 2016, Celcoin provides financial infrastructure services and solutions for banks, fintechs, and enterprise companies. Celcoin’s offerings span three key verticals – payments, banking, and lending – enabling personalized embedded finance solutions for companies across various segments and stages of development. With over 400 financial industry customers and more than 5,000 non-financial company clients, Celcoin combines advanced technology, product innovation, and best-in-class security to help customers build financial offerings that meet their end-consumers’ needs.
Brazilian Financial Technology Landscape
Brazilian financial technology is among the most advanced globally. The Central Bank of Brazil has introduced groundbreaking innovations in recent years, including the instant payment system Pix, launched in October 2020. Pix transaction volume soared to 5 billion monthly transactions within four years. The Central Bank also introduced Open Banking in 2021, with over 22 million customers consenting to share their data between participating financial institutions. Celcoin has emerged as a leading provider of Open Banking solutions for licensed institutions.
Celcoin’s CEO Statement
“Celcoin’s technology allows banks, fintechs, and non-financial companies to introduce their own financial products and embed financial services directly into their ecosystems. We see this as the future of the financial sector, and we are excited to be part of this transformation,” says Celcoin CEO, Marcelo França. “With this funding, we plan to accelerate our investments in technology and innovation as well as evaluate both organic and M&A-driven growth opportunities.”
Summit Partners’ Perspective
“Over the last several years, we’ve worked to identify technology companies that we believe are supporting economic development in Brazil through the financial empowerment of the Brazilian consumer,” commented Alberto Reyes, an investor with Summit Partners. “We believe we have found such a company in Celcoin, and we are confident that our investment will continue to bolster this mission.”
Celcoin’s Momentum and Growth
This financing comes at a time of strong momentum for Celcoin, with the company recording US$63 million in annual recurring revenue in the first quarter of 2024 – a 140% increase compared to the same period last year. Celcoin processes over 200 million Pix transactions monthly, highlighting the robustness and reliability of their platform. In addition to developing in-house products, Celcoin has completed four strategic acquisitions since 2022: Galax Pay, specializing in billing and sub-acquiring solutions; Flow Finance, providing credit infrastructure; Finansystech, a leading Open Finance startup; and Reg+, a regtech solution dedicated to regulatory compliance.
Board of Directors and Future Plans
“It is truly a privilege to partner with the impressive team at Celcoin during this phase of exciting innovation and expansion,” said John Coughlin, an Executive-in-Residence at Summit Partners who will join the Celcoin Board of Directors. “We have been impressed by the scalability of their platform and speed of new product innovation. We look forward to supporting Celcoin as the company continues to expand in Brazil and throughout Latin America.”
Christopher J. Dean, a Managing Director at Summit Partners, and angel investor Michael Esrubilsky will join Coughlin on the company’s Board.
Innova Capital’s Continued Support
Innova Capital, which invested in Celcoin’s two most recent funding rounds, also participated in this financing. “Celcoin provides a technological infrastructure that allows its clients to take advantage of some of the greatest tailwinds in the payments landscape in Brazil, such as bancarization, emergence of instant payment methods, and Banking as a Service. We are excited to continue to support the Celcoin team, and work alongside Summit Partners and the other shareholders,” said Marcel Vitor Santos, Managing Director of Innova Capital and Celcoin Board Member.