Payment fintech PicPay recently announced that it has received authorization from the Brazilian Central Bank to increase its capital by $28 million, raising it to around $646 million.
In a press statement, the company founded in 2012 affirmed that the capital increase was carried out to support the investment plan focused on growth and profitability, the agenda of which was initiated in 2022.
This capital increase reinforces the confidence of shareholders in the development of the company’s business plan.
Expanding the portfolio beyond payments
A few weeks ago, J&F, the holding company controlling PicPay and Banco Original, started a process to transfer the bank’s retail portfolio to the fintech. This has extended the business potential of PicPay, which will now be able to act as a digital bank.
Banco Original had a $3.6 billion portfolio as of September 2022, with about 40% allocated to the retail sector.
PicPay has also been looking to get into Open Finance. Recently, the company announced that it had received permission from more than a million users to share their banking data with other financial institutions.
The direct impact of this is the transformation of PicPay into a new Payment Initiator, allowing users to perform PIX transactions using their available balance at other banks directly within the PicPay app.
At the beginning of this month, as Fintech Nexus previously reported, the company announced the acquisition of BX Blue – a payroll lending marketplace – to enter Brazil’s billion-dollar loan market.
The growth of this fintech has been exponential in recent years, and the company now has 32 million active users in Brazil.
With these recent moves, the company is expected to slowly transform itself into a kind of hybrid fintech, going far beyond payment services.