Warburg Pincus snaps up minority stake in Brazil’s Contabilizei for $125m
Warburg Pincus, a private equity firm headquartered in New York, has acquired a minority stake in Brazilian accounting fintech Contabilizei for $125 million.
Warburg Pincus acquires minority stake in Contabilizei
The move will see Warburg Pincus become the largest shareholder of Contabilizei, acquiring stakes from venture capital funds that had invested in Contabilizei since 2014.
Founded in 2013, Contabilizei automates accounting for small and medium-sized enterprises (SMEs) and self-employed professionals. It claims its tech is currently being used by over 50,000 clients “to calculate and pay taxes, fulfil tax obligations, and handle accounting records”.
The company, which reports to have achieved more than BRL 300 million (approximately $60 million) in total revenue, also provides an integrated bank account solution that links to its accounting services and recently introduced health plans.
Speaking on the investment, Bruno Maimone, MD at Warburg Pincus, says the firm sees “great potential” in Contabilizei, “especially in a market still dominated by manual processes, with ample room for automation and the use of artificial intelligence”.
“Additionally, there is significant room for further monetisation through the expansion of financial services offered on the platform,” adds Maimone.
Following the deal, Warburg Pincus now has a portfolio of 11 Brazilian companies, including eight in the technology sector. One such Brazilian firm is paytech Matera, which received a $100 million investment from Warburg Pincus in July.
