Celcoin, a leading company in the Banking as a Service (BaaS) financial technology market, announced a $125 million investment led by global growth equity investor Summit Partners. Existing investor Innova Capital is also participating in the round, along with experienced financial technology executive John Coughlin, a former senior executive with Corpay.
This new funding round will support Celcoin’s expansion plans as the company works to continue delivering new and innovative products to strengthen its leadership position in the BaaS and embedded finance market.
Launched in 2016, Celcoin offers financial infrastructure services and solutions for banks, fintechs, and enterprise companies. Focused on three key verticals (payments, banking, and lending), Celcoin’s offerings are designed to enable personalized embedded finance solutions for companies across any segment and stage of development. With 400+ customers in the financial industry and 5,000+ non-financial companies, Celcoin combines market-leading technology, product innovation, and best-in-class security to support customers in building financial offerings that serve the needs of their end-consumers.
In 2021, the Central Bank of Brazil introduced Open Banking and over 22 million customers have already consented to share their data between participating financial institutions. And Celcoin has become the leading provider of Open Banking solutions for licensed institutions.
This funding comes at a time of strong momentum for Celcoin, with the company recording $63 million in annual recurring revenue in the first quarter of 2024 – a 140% increase compared to the same period last year. And Celcoin processes over 200 million Pix transactions monthly, highlighting the robustness and reliability of their platform.
Along with the ongoing development of in-house products, Celcoin has successfully completed four strategic acquisitions since 2022: Galax Pay (specializing in billing and sub-acquiring solutions); Flow Finance (provides credit infrastructure)m Finansystech (leading Open Finance startup) and Reg+ (a regtech solution dedicated to supporting regulatory compliance).
Christopher J. Dean, a Managing Director at Summit Partners, and angel investor Michael Esrubilsky join Coughlin on the company’s Board.
KEY QUOTES:
“Celcoin’s technology allows banks, fintechs and non-financial companies to introduce their own financial products and embed financial services directly into their ecosystems. We see this as the future of the financial sector, and we are excited to be part of this transformation. With this funding, we plan to accelerate our investments in technology and innovation as well as evaluate both organic and M&A-driven growth opportunities.”
– Celcoin CEO, Marcelo França
“Over the last several years, we’ve worked to identify technology companies that we believe are supporting economic development in Brazil through financial empowerment of the Brazilian consumer. We believe we have found such a company in Celcoin, and we are confident that our investment will continue to bolster this mission.”
– Alberto Reyes, an investor with Summit Partners
“It is truly a privilege to partner with the impressive team at Celcoin during this phase of exciting innovation and expansion. We have been impressed by the scalability of their platform and speed of new product innovation. We look forward to supporting Celcoin as the company continues to expand in Brazil and throughout Latin America.”
– John Coughlin, an Executive-in-Residence at Summit Partners who will join the Celcoin Board of Directors
“Celcoin provides a technological infrastructure that allows its clients to take advantage of some of the greatest tailwinds in the payments landscape in Brazil, such as bancarization, emergence of instant payment methods, and Banking as a Service. We are excited to continue to support the Celcoin team, and work alongside Summit Partners and the other shareholders.”
– Marcel Vitor Santos, Managing Director of Innova Capital and Celcoin Board Member
