Brazilian portable payments app PicPay registered on Wednesday an F-1 with the Security and Exchange Commission( SEC) for the purposes of an IPO evaluated at up to $100 million. The company plans to list on the Nasdaq under the ticker represent PICS.
PicPay operates principally as a financial services platform that includes a credit card, a digital wallet same to that of Apple Pay, a Venmo-style P2P payments element, e-commerce and social networking features.
“We want to transform the way people and companies interact, offset deals, and communicate in an smart, connected, and simple know ,” said Jose Antonio Batista, CEO of PicPay, in a statement.
While the company is based in Sao Paulo now and operates across Brazil, PicPay initially launched in Vitoria in 2012, a coastal city north of Rio. In 2015 the company was acquired by the group J& F Investimentos SA, a holding company owned by Brazilian billionaire friends Wesley and Joesley Batista, which also own the massive meatpacker JBS SA.
According to the company’s registration statement, J& F was involved in the biggest corruption scandal in Brazil’s history, known as The Car Wash, and in 2017 enters into force a plea deal with the Brazilian Federal Prosecutor. In December 2020 the company agreed to pay a fine of $1.5 billion and lend an additional $ 442.6 million to social programmes in Brazil. That said today, J& F is still strong conglomerate in the country, orientation itself as a strong backer for PicPay.
2020 was an explosive year for PicPay as the company verified its active userbase stretch from 28.4 million to 36 million as of March 2021. According to the company’s 2020 business report, which PicPay shared with TechCrunch, the company’s incomes also germinated drastically from $15.5 million in 2019, to $71 million in 2020. The fellowship is not yet productive, nonetheless, and PicPay shelled out $146 million in 2020 to oil its growth.
“We believe that the growth of our base and user engagement in our ecosystem demoes the scalability of our business prototype and uncovers a great opportunity to generate more value for these purchasers, ” Batista added.
Fintech is one of the most popular sectors in Brazil today, because there’s a lot of room for improvement in the region. The country has traditionally been controlled by four major banks, which have been slow to adapt to technology and too charge very high fees.
PicPay’s IPO is being led by Banco Bradesco BBI, Banco BTG Pactual, Santander Investment Securities Inc ., and Barclays Capital Inc.
* The Brazilian Real was valued at 5.50 to$ 1 USD on the date of publication.
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