Two weeks after announcing an investment of BRL$1 billion, QI Tech, specialized in infrastructure for financial services, acquired 100% of Singulare, one of the main stock brokers in Brazil.
The value and detailed terms of the transaction were not disclosed by the companies, but the idea is for QI Tech to take control of the business as soon as approval is obtained from the Central Bank (BC) and the Administrative Council for Economic Defense (Cade).
For QI Tech, this purchase reinforces the business unit ‘DTVM as a service’, recently launched.
About four months ago, the fintech received approval from the Securities and Exchange Commission (CVM) and Anbima to operate as a Distributor of Securities and Securities (DTVM).
In this way, it became the first credit fintech in Brazil to also obtain a license to operate as a broker.
“We realized that it is a promising market, but to get where we want to be, we would have to strengthen ourselves, either in knowledge or in technology. And we were already partners with Singulare.
“The conversation should have started a year and a half ago. It was not an easy negotiation, because it takes time and there are significant transactions,” revealed Pedro Mac Dowell, CEO and co-founder of QI Tech.
The entrepreneur avoids talking about the expected revenue increases with the operation, but affirms that Singulare is a company “as big as QI”, solid, cash-generating, and profitable.
“In terms of revenue, Singulare is larger, while QI’s operating profit is higher. One company fits well with the other. Our goal is for 1 + 1 to become 5,” added the executive.
According to the latest financial statements, in the first half of this year, Singulare had net income of BRL$128.2 million, an increase of 2.2% compared to the same period in 2022.
The Ebitda increased by 31%, to BRL$50 million. The net profit for the period was BRL$27.8 million, an increase of 27.3% over the same comparison base.
“We should close the year with revenues of BRL$300 million, and we could reach BRL$360 million next year. Not to mention the advantages and improvements with the arrival of QI Tech,” assured Álvaro Augusto de Freitas Vidigal, CEO and founding partner of Singulare.
The conclusion of the operation depends on the authorization of Cade and BC. Meanwhile, the structures continue independently. In principle, the Singulare brand will be maintained.
“This will be a conversation we will have to have in the next few days. But the name doesn’t matter much, especially because at Singulare, we have 140 clients who are executives we know by name and surname,” emphasizes De Freitas.
“Even after the approval of CB, the idea is to join forces, maintain people and structures,” added Mac Dowell. Currently, QI Tech has approximately 116 employees, and Singulare has about 300.
In addition to the natural synergies between the companies, executives highlight the boost that the FIDC industry should receive from CVM Resolution 175, in effect since early October.
In practice, this type of fund can now receive investments from the general public. Previously, this product was only available to qualified investors (with more than BRL$1 million in investments) or professionals (more than BRL$10 million).
“The introduction of the retail investor is essential for the long-term growth of the FIDC market. It will bring a huge increase in assets to the sector.
“In our case, even with 960 funds, we only have 6,000 investors, while a retail fund can have 200,000 investors,” explains Daniel Doll Lemos, partner and director of fiduciary administration at Singulare.
