IQ Tech: investment of R$1 billion in fintech is the biggest of the year – 11/01/2023 – Market

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Fintech receives biggest investment of the year

QI Tech, a fintech that provides infrastructure for granting credit to companies, announced this Tuesday that it had received funding from US$200 million (R$ 1 billion).

• The fintech did not reveal how much it was valued after the investment, made in a series B round (understand the stages of investment in startups here).

Who invested: the contribution was led by the American fund General Atlantic, which also has companies such as Unico, Kavak and QuintoAndar in its portfolio. The round was accompanied by Across Capital, which was already an investor in QI Tech.

In 2021, the fintech had received an investment from the Singapore Sovereign Fund (GIC), in a series A worth US$50 million (R$252 million, at current prices).

The startup: Founded in 2018, it claims to be profitable from its first year of operation. Focusing on large companies, names such as 99, Enjoei, QuintoAndar and Unidas are some of its clients.

• Fintech offers a set of APIs (communication interfaces) with credit offering services, payment tools, opening digital accounts and anti-fraud solutions.

• Customers can purchase one or more solutions and integrate them into their platform, as if it were Lego, and offer them to the end consumer.

• The idea is to be a “one-stop-shop” for financial services, that is, to offer a complete journey for client companies in one place.

With most of the solutions using native technology (built in-house), the company took advantage of the contributions received to purchase solutions that added to its financial services platform.

One example was cybersecurity startup Zaig, acquired in 2021, which added fraud prevention to the range of products offered.

In this yearQI Tech received authorization to operate as a DTVM (Distributor of Securities and Securities), with an eye on the FIDCs (credit rights funds) market.

After the current round, the company is targeting an IPO (initial share offering), which could happen here or in the US, but depends on market conditions, Marcelo Bentivoglio, co-founder and financial director of the fintech, told Reuters.

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Government studies target with deficit of 0.5%

The Lula (PT) government is discussing sending Congress a message to review the goal of closing the public account deficit next year.

The new target would be a primary deficit (more expenses than revenue, not counting interest expenses) of 0.5% of GDPbut the number is still under discussion, writes reporter Catia Seabra.

What it’s like today: The Budget forwarded by the government foresees a balance between revenues and expenses next year, with a tolerance margin of 0.25 points, more or less, as foreseen in the fiscal framework.

• If the target is exceeded on the negative side, cost containment measures are implemented, such as a ban on public tenders and raises for civil servants.

How it might look: the government is considering changing the target to a deficit of 0.5% of GDP. In this case, the tolerance margin would increase to a deficit of up to 0.75%, making room in the Budget for more expenses.

How we got here: the government had not publicly admitted that it would not reach the target set for next year, despite projections by economists and market analysts pointing to this.

• The scenario changed last Friday, when President Lula said that it did not need to be zero so as not to “start the year by cutting billions in the works that are a priority in this country”.

• The speech caused interest rates and the dollar to rise, and the Stock Exchange to fall. In the economic team, the president’s announcement became a cause for warning, with the fear that the revenue measures being processed in Congress will not move forward.

On Mondaythe Minister of Finance, Fernando Haddad, avoided setting the zero target and got angry with journalists when he was asked about the possibility of the government not meeting the objective.

Opinion | Vinicius Torres Freire: Understand in this column why changing the zero deficit creates more problems than it solves.

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Owner of Starbucks, Subway and Eataly in Brazil asks for RJ

SouthRock Capital, which operates brands such as Starbucks, Subway and Eataly in Brazil, filed for judicial recovery (RJ) this Tuesday. The investment fund reported debts of R$ 1.8 billion.

Which explains: SouthRock cited the pandemic, inflation and high interest rates as factors that led it to take the measure to protect against creditors.

• She further said that RJ’s request was made to financially protect some of its operations and adjust its business model to the current economic reality.

Among the measures to be taken is “the review of the number of operating stores, the opening calendar, alignments with suppliers and stakeholders, as well as its workforce as it is currently organized.”

SouthRock: was founded in 2015 by American investor Ken Pope. Since then, it has acquired the right to operate brands in Brazil, such as Starbucks, in 2018, and Subway and Eataly, both last year.

• She is also responsible here for TGI Fridays and the restaurant services company Brazil Airport Restaurantes (BAR), with establishments in airports across the country, such as Guarulhos.

The brands will continue to operate normally during this restructuring phase, the company said.

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Milk with melatonin

Milk expressed from a cow in the early hours of the morning, when she is sleepy, has around ten times more melatonin than milk expressed in the middle of the afternoon, at 3pm.

• The result, observed by Finnish research, was confirmed by a study carried out by the Federal University of Viçosa (UFV).

This is one of the arguments for the release of milk production with melatonin in Brazil, sought by milk producers for more than two years. The Ministry of Agriculture and Livestock, responsible for the analysis, says that it deals with the issue with Anvisa (National Health Surveillance Agency).

Understand: Melatonin is a naturally produced hormone for inducing sleep. In the human body, its production decreases with aging.

• Since October 2021, Anvisa has authorized the use and sale of melatonin without a prescription, but only as a dietary supplement and for people over 19 years of age.

• Brazilian producers argue that night milking is already permitted abroad, does not affect cows and generates benefits for people.

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