PicPay eyes Wall Street listing as Brazilian fintechs seek global capital

Brazil’s PicPay, a leading digital payments firm backed by the billionaire Batista family, is reportedly preparing for a US initial public offering that could raise up to about $500 million.

The move marks a renewed push for Latin American fintechs to tap global markets amid improving investor appetite for profitable technology companies.

The company, Bloomberg reports, which last filed for a US IPO in 2021 before withdrawing a year later, is working with Citigroup, Royal Bank of Canada, and Bank of America on the planned listing.

While details of the size and timing are still being finalised, PicPay could make its Wall Street debut as early as this year, depending on regulatory clearances.

Fintech revival amid shifting market dynamics

The planned offering comes at a time when investor confidence in the fintech sector is gradually returning.

Rising digital transactions, growing smartphone penetration, and the region’s underbanked population continue to drive momentum for mobile-based financial platforms across Latin America.

Founded in Vitória, Brazil, in 2012, PicPay has grown from a peer-to-peer payments app into a full-scale digital financial ecosystem. Its services now include digital wallets, debit and credit cards, loans, and investment options.

The company’s business model resembles that of global fintechs like PayPal and Revolut, aiming to simplify banking through app-based access.

The firm is majority-owned by J&F Participações, the investment holding company of the Batista family, best known for their stake in meat producer JBS SA.

Their investment in PicPay began in 2015, fuelling rapid expansion into one of Brazil’s most recognised mobile banking brands.

Profit rebound strengthens IPO prospects

PicPay’s latest financial results underline its readiness for public markets. In the six months through 30 June 2024, the company reported a profit of 208.4 million reais on revenue of 4.5 billion reais, nearly doubling from the same period a year earlier when it earned 61.8 million reais in profit on 2.4 billion reais of revenue.

The strong rebound highlights the fintech’s operational efficiency and diversified revenue streams, spanning consumer payments, lending, and merchant services.

This financial progress may appeal to investors seeking stable profitability after a period of volatility among Latin American tech listings.

Regulatory timing adds complexity

PicPay’s renewed listing efforts come as the US Securities and Exchange Commission navigates temporary operational delays due to a partial government shutdown.

However, the SEC recently issued guidance enabling some IPO filings to proceed, potentially allowing PicPay to maintain its target timeline.

The 2021 filing had aimed for a valuation near $8 billion, according to earlier reports. Although the current valuation has not been disclosed, analysts expect a more moderate figure aligned with today’s cautious market environment.

Sources familiar with the process said deliberations are ongoing and the final structure could still evolve, with the possibility of additional banks joining the underwriting group.

Representatives for PicPay, Citigroup, and Bank of America declined to comment, while Royal Bank of Canada did not immediately respond to requests.

Latin America’s new wave of fintech listings

If successful, PicPay’s IPO would signal renewed international interest in Latin America’s digital finance sector. The region has seen rising demand for mobile banking and online payments, driven by rapid digitalisation during the pandemic and continued fintech innovation.

A Wall Street debut would also place PicPay among a small but growing group of Latin American firms testing US capital markets again after a two-year lull.

The listing could help the company access a wider investor base, strengthen its balance sheet, and fund technological upgrades to compete with both local rivals and global payment giants.

For the Batista family’s J&F Participações, the offering represents a strategic opportunity to diversify its portfolio beyond commodities and manufacturing.

The investment arm’s renewed focus on digital services mirrors a broader shift among Brazilian conglomerates towards tech-driven assets with scalable potential.

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