An Argentine fintech raised USD 35 million from global investors to expand in Latin America

closeup woman hand using phone and credit card shopping online

The fintech Geopagos, dedicated to providing infrastructure to payment methods companies throughout the region, obtained USD 35 million in its first round of investmentled by Riverwood Capital, a global investor in high growth technology companies, with the participation of the investment fund Endeavor Catalyst. “The round represents the company’s first institutional financing and will facilitate the acceleration of its expansion plan in Latin America while increasing investments in its technological infrastructure,” the company said in a statement.

In that way, Geopagos joins the long list of fintech Argentina that strengthen their activity in Latin Americasupported by access to financing with global investors and technological development at the local level. Founded in 2013 by Sebastián Núñez Castro, Julián Lisenberg, Fernando Tauscher, Raúl Oyarzun and Damián Harburguer, It can be said that Geopagos is a Latin American company, rather than an Argentine one.. It operates in 15 countries in the region, its technology facilitates more than 150 million transactions with a processed volume of USD 5,000 million per year.

Under the “fintech as a service” modality, it provides end-to-end digital solutions for large financial institutions, fintechs, retailers, and software companies, among others, that wish to launch or scale their payment acceptance business, both in the region . Among its main clients are companies such as Santander, BBVA, Itaú, Fiserv, Bac Credomatic, Niubiz, Banco Estado de Chileamong others.

Raúl Oyarzun, Julián Lisenberg, Fernando Tauscher and Sebastián Núñez Castro, founders of Geopagos
Raúl Oyarzun, Julián Lisenberg, Fernando Tauscher and Sebastián Núñez Castro, founders of Geopagos

“We have built a consolidated and profitable business, and we are convinced that this was the right time to accelerate the growth of the business by expanding our infrastructure throughout Latin America. We are excited to continue this new stage together with Riverwood, whom we consider the ideal partner, since it has a 15-year history supporting technology companies worldwide,” he said. Sebastian Nunez CastroCEO and co-founder of Geopagos

The funds received will be used for the development of new products in order to expand Geopagos’ omnichannel proposal, in addition to enabling new payment acceptance methods and opening its API platform for companies to speed up time to market.

“Since our inception, we have set out to make payment acceptance easier and more accessible, helping our customers launch successful and innovative products through a solution that can deliver a superior consumer experience, building customer loyalty,” he added. Nunez Castro.

fintech expansion

Driven by the entrepreneurial spirit, the ability to adapt to complex scenarios and a certain amount of resilience, Argentine fintech companies can hang themselves a medal that not all sectors achieve in a complex economic scenario. Many of them, even being SMEs, have conquered other markets in the region. Two factors add up to boost the phenomenon: the interest of many investment funds in supporting the fintech sector and the pandemic, which prompted the digitization of financial services.

Beyond the cases of the giant Free market the of walathat has already been developed in Mexico and Colombia, there are many other fintechs of Argentine origin that are expanding in the region. Lemon, the startup founded by Marcelo Cavazzoli and Borja Martel, landed in Brazil in March, within the framework of “an expansion plan for Fill all of Latin America with Bitcoin”according to Cavazzoli. Lemon started in 2019 with 5 people and at the end of this year expects to employ 500 throughout the region. In 2021, it made the leap with an investment round of USD 16 million.

Another Argentine fintech that has expanded abroad is Wenancethe company founded by alexander muzak dedicated to online credit for consumption. With its brand Welp it began to operate in Peru, which adds to its presence in Mexico, Uruguay and Spainwith plans to add other seats. In all markets, Wenance has a historical portfolio of 847,000 loans granted and 400 employees.

Recently, the case of Buta startup founded by Thomas Mindlin, Kevin Litvin, Nicholas Andriano, and Bruno Cortinoviswhich already operates in Argentina, Colombia and Peru with 14 agreements about to be closed to offer replicable services throughout the region. But was born from the experience of the Tap digital wallet, launched last year by Mindlin and Litvin with the focus on the collection of utility bills. With this learning, the project of offering solutions for improve the experience in “recurring payments” and fight cash and the tradition of the face-to-face payment systemsomething as present in Argentina as in any country in the region.

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