Business

Brazil’s fintechs to ride out current storm

Fintechs are losing value amid an uncertain economic scenario. But the sector dismisses concerns that it faces a crisis

Brazil’s fintechs confident they will ride out current storm
The logo of PagSeguro, a Brazilian fintech, is displayed to celebrate its 2018 IPO on the New York Stock Exchange. Photo: Érika Garrido/Folhapress

Once hailed as a Brazilian success story, the trajectory of fintech Nubank could be about to become a cautionary tale instead. The digital bank went public on the New York Stock Exchange last December with an IPO that pushed its value past USD 52 million and made it Latin America’s most valuable financial institution. Half a year on, things do not look so rosy: Nubank’s share prices are now valued at around 30 percent of their post-IPO quote.

As The Brazilian Report explained in the first edition of its Market Roundup in May, this trend is not restricted...

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