Visa wants to buy Brazilian fintech company Pismo and has offered $1.4 billion to close the deal.
The startup has made a name for itself in the market for its cloud banking and payment processing platform. It is currently negotiating its sale with at least one other interested party.
Pismo hired Goldman Sachs for the sale process.
According to market experts, Visa’s goal is to change its strategy in Brazil — a country that is not very active in M&As.
This is Visa’s second offer for the Brazilian fintech. Previously, the American company offered $1 billion to acquire the startup, but the offer was refused.
Pismo’s partnerships with Brazil’s biggest banks
Pismo operates in Brazil with cloud infrastructure operations, partnering with large banks in the South American country, such as Itaú, BTG+, and part of Citi Bank’s operation, as well as the São Paulo Stocks Exchange (B3) and other fintechs.
In addition, SoftBank Latin America Fund, Amazon.com Inc, Falabella Ventures, and Redpoint ventures are among Pismo’s investors.
Founded by Ricardo Josua (CEO, Juliana Motta (CPO), Daniela Binatti (CTO), and Marcelo Parise (VP of Engineering), the fintech currently processes 74 million accounts, with about 38 million cards. According to the company, the number of accounts has grown 30% in the last six months.
Helping fintechs develop payment and banking products
In October 2021, Pismo did a series B round led by Softbank, raising $108 million. The company did not disclose the valuation at the time, but the market estimates were $600 million to $700 million.
The previous round had taken place in 2016 — the year Pismo was founded — for a value of $10 million.
Pismo’s technology makes it easy for banks and fintechs to quickly launch card and payment products, digital wallets, and marketplaces linked to LatAm retailers while providing financial data organization and management services.
Visa’s interest in acquiring entire companies is rare in LatAm. In recent months, the company has focused on its Visa for the Startups accelerator program, which does not involve equity.
