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BFD Expert Voices - Private Credit

BFD Expert Voices

QI Tech, a Brazilian Banking and Lending as a Service startup, raised $200 million in Series B financing led by General Atlantic.

Why it matters: Responding to the state of the fintech fundraising market, QI Tech says it plans to use the new funds to explore M&A opportunities.

How it works: Founded in 2018, QI Tech provides a set of APIs that enables other businesses to offer banking or lending services to their end customers.

On the banking side, that includes digital account opening, wire transfers, Pix, bank slips and other payment services.

On the lending side, it provides credit scoring and credit underwriting to enable buy now, pay later lending for e-commerce brands, as well as more traditional home equity or student loans for asset managers and fintechs.

Zoom in: QI Tech has a Direct Credit Company (SCD) license approved by the Brazilian Central Bank, which operates as a limited type of national bank charter.

That means that, unlike most BaaS providers in the U.S., QI Tech doesn't have to partner with a sponsor bank to offer its services to B2B clients.

It also holds a brokerage license to administer and safeguard investment funds.

Flashback: In 2021, QI Tech raised a Series A round of $50 million led by Singapore's sovereign investment fund GIC.

What's next: As with that Series A, this round will fund M&A opportunities.

In late 2021, shortly after the close of its Series A round, the company acquired fraud prevention startup Zaig.

Earlier this year, QI bought banking application development startup Builders Bank.

What they're saying: "We decided to make sure that we had enough cash in our balance sheet to pursue M&A as we believe this next phase, this next 12-18 months, is going to be a good phase for acquisition," QI Tech co-founder and CFO Marcelo Bentivoglio says.

In particular, Bentivoglio says the company is looking for companies that could boost its collections capabilities, as well as startups that are building open finance and open investment platforms.

Of note: Across Capital, which invested $12 million into the company in October 2022, doubled its investment in the most recent round.

J.P. Morgan served as leading placement agent, Vinci Partners as financial adviser, and Freitas e Leite Advogados as legal counsel for the Series B round.

QI Tech bags $200 million with eye on M&A

QI Tech plans to make strategic purchases.

Illustration of the Brazilian flag altered so the yellow diamond is shaped like an upward trend line

Fintech

QI Tech, a Brazilian <a class="gtmContentClick" data-vars-link-text="Banking and Lending as a Service" data-vars-click-url="https://www.axios.com/pro/fintech-deals/newsletters/2023/07/31/fintech-all-about-the-baas" data-vars-content-id="614664cd-aa6a-479e-8617-640e138c4077" data-vars-headline="QI Tech bags $200 million with eye on M&amp;A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/fintech-deals/newsletters/2023/07/31/fintech-all-about-the-baas" target="_self">Banking and Lending as a Service</a> startup, raised $200 million in Series B financing led by General Atlantic.Why it matters: Responding to the state of the <a class="gtmContentClick" data-vars-link-text="fintech fundraising market" data-vars-click-url="https://www.axios.com/pro/fintech-deals/2023/10/05/fintech-funding-ticks-upward-in-september" data-vars-content-id="614664cd-aa6a-479e-8617-640e138c4077" data-vars-headline="QI Tech bags $200 million with eye on M&amp;A" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/fintech-deals/2023/10/05/fintech-funding-ticks-upward-in-september" target="_self">fintech fundraising market</a>, QI Tech says it plans to use the new funds to explore M&amp;A opportunities.

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QI Tech bags $200 million with eye on M&A

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