XP Investimentos acquires majority stake in fintech Fliper

Contxto – Open banking in Brazil has led XP Investimentos to review its growth strategy. And in light of the market opportunity it sees in its native country, it bought a majority stake in fintech Fliper.

The value of the transaction remains undisclosed as of the announcement made last Monday (8). The only loose end remaining is the Brazilian Central Bank’s nod of approval regarding the deal.

The fintech’s co-Founders, will continue on as stakeholders at Fliper and run it independently. Although now it can rely on XP Investimentos’ large scale reach, security systems, and back-office.

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Fliper and the customer investment experience

Entrepreneurs Felipe Bonani, Renan Georges, and Walter Poladian founded Fliper in 2017. And the startup they created is all about making the investment experience a more transparent one. 

Through a single platform, users can view and compare their portfolios’ performance across various institutions. Truly something that’s great for the customer experience as they don’t have to hop from one system to another to gather that data. Moreover, considering how fast-paced investing can be, accessibility and clarity with portfolio yields is important.

• Related article: Proptech Hent raises US$1 million with Canary

At the moment Fliper has mapped R$7 billion (around US$1.4 billion) in investments on its platform and it believes it can snag 5 million users in the future.

An investment boom in Brazil?

Recent findings by the Brazil Stock Exchange or “B3” show this country’s people are acquiring a fondness for investing.

• By the numbers: The amount of individual investors in the stock market rose 41.8 percent last April in comparison to the same period in 2019.

• What’s odd/interesting: Many of these new investors aren’t Scrooge McDucks with vaults full of money and years of investment experience. Rather, they’re young people.

• What stock market reps say: “We’ve seen the continued entry of individuals into the variable-income assets market and we are demystifying the narrative that people need a lot of money. Individuals are partaking more and more in variable-income and amounts invested are not high,” notes Felipe Paiva, B3 Director of Customer Relationships.

These fresh and young funds will certainly bolster the Brazilian stock exchange. And it’s also a promising sign for the fintechs that address these novel investors.

Related articles: Tech and startups from Brazil!

-ML