Breakeven? This Brazilian startup has $70 million in revenue and sees an IPO ‘anytime’

Bloomberg Linea — CloudWalk is preparing for a possible initial public offering and plans to conduct an IPO in the United States in late 2025, depending on market conditions. According to Luis Silva, CEO and founder of CloudWalk, in an interview with Bloomberg Line durante o Brazil in Silicon Valley last week.

“We are preparing for the IPO, and we have the most important thing, which is the impressive numbers that will allow us to make an offer if we want, if the macro languages ​​allow.”

The company plans to conquer the North American market and for this purpose is approaching the closing of a strategic partnership with three banks operating in the country. Headquartered in São Paulo, CloudWalk generates approximately $500 million in annual recurring revenue (ARR) in Brazil.

read on: This Brazilian founded a unicorn. Now in search of the next $1 trillion AI company

“It’s a profitable company, we get about $70 million in net income (net income) on an annual basis,” said the entrepreneur. He said the company is growing at an average of 50% annually with a base of 1.5 million customers in Brazil.

Silva emphasized the importance of the technology developed by the company in the Brazilian market, which offers real-time payments and fraud prevention strategies.

CloudWalk offers InfinityPay in Brazil, an acquiring brand that has a bank account, payment link, card and cashback for small and medium businesses.

A year and a half ago, CloudWalk started an expansion project in the US.

“We saw that US micro-merchants need to accept payment faster. There is no Pix. There is Fednov (a service similar to Pix), which are trying to gain momentum and invite banks to participate, but not all banks have accepted it yet,” said Silva.

“America’s micro-entrepreneurs still don’t know what it means to sell and get paid instantly, so we created a brand called Jim.com.”

read on: This office decided to invest in the venture capital market. Now reap the rewards

According to CloudWalk’s CEO, registrations are approved in seconds, allowing the seller to start selling and getting paid immediately.

“We have artificial intelligence (Artificial intelligence) in this app that will help you spend that money, sell, advertise and optimize your business better,” he said.

Jim.com will launch in New York, Austin and Silicon Valley. “In the coming weeks, we will begin sending out invitations to a few people who have already signed up to our waiting list.”

The entrepreneur said that the business structure and self-developed platform allow CloudWalk to operate efficiently, citing an annual revenue per employee of approximately US$833 (given that the company has approximately 600 employees).

“We think the technology we’re bringing to the US market is very unique because it’s a real-time payment,” said the fintech CEO.

Following its latest funding round in 2021, CloudWalk has raised a total of US$360 million in venture capital at a valuation of US$2.15 billion. Among the main investors of the startup are Coatue, DST Global and Valor Capital.

Read also

As for Stelleo Tolda, Mercado Livre still does not see the work of artificial intelligence. And hire more