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Contxto – Sometimes, to launch a new product that offers insightful features means building it from scratch. Or, in fintech Neon’s case, by acquiring a securities broker and just absorbing that knowledge.
Yesterday (16) news broke that Neon bought Magliano Invest—one of the oldest brokerage firms in Brazil—for an undisclosed amount.
Correspondingly, Magliano’s small team of around 15 people will be brought onto Neon. This maneuver is the startup’s second purchase after having bought tech startup MEI Fácil in September of last year.
- Related article: Brazilian fintech Neon closes Series B worth US$95 million
More recently through Magliano, the startup plans to launch an investment feature for its app users. Although interestingly, it will be designing its new product for more low-income people.
Neon and investing in Brazil
Strange as it sounds, it’s a good time to invest in Brazil right now. And I’m not even talking about venture capital (VC) investing either, but rather your “normal” stock market, government bonds, real estate-type deals.
Thanks to low interest rates, people across the country are increasingly searching for investment opportunities. However in the spur of the moment, Neon isn’t overlooking users who may have a lower income.
“With low interest rates, those who do not have an investment platform will have a worse product,” said Jean Sigrist, Managing Partner at Neon.
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Fintechs often boast of working to offer financial inclusion for all… to the point that it’s become a cliché. (Kind of like when beauty pageants were still a thing and contestants would wish for “world peace”)
Although it’s refreshing this time around to see that Neon is putting its money where its mouth is. Certainly through its upcoming investment product, it wants to address a segment that’s uber-ignored by most asset managers.
Related articles: Tech and startups from Brazil!
-ML
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