Warburg Pincus bought a stake in the startup Contabilizei for US$125 million or around R$702 million. With the transaction, WP becomes the largest shareholder of the company founded in 2013, which automates accounting services focused on small businesses and self-employed professionals.
The manager acquired shares in venture capital funds that made contributions to Contabilizei from 2014 onwards, including Kaszek. In addition to WP’s entry, the startup also maintains Softbank Latin America Funds as a shareholder.
Contabilizei currently has more than 50 thousand customers and exceeded revenue of R$300 million. The startup provides micro and small businesses and self-employed workers with free business opening and accounting services with a 99% automated process for calculating and paying taxes, complying with tax obligations and accounting records. The company also has a solution with a bank account integrated into accounting.
READ MORE: Contabilizei receives investment of R$320 million led by Softbank
“We see great potential in the company, especially in a market still dominated by manual processes and with ample space for automation and the use of artificial intelligence”, says Bruno Maimone, responsible for the transaction and Managing Director at Warburg Pincus in Brazil. “The investment in the company is also in line with our global strategy, we have a long history of investing in companies within the thesis of tax automation in the United States, such as Avalara and Chipsoft.”
According to Vitor Torres, CEO and founder of Contabilizei, the entry of Warburg Pincus is yet another important validation of the execution of the growth strategy supported by cash generation adopted by the company in recent years. “Warburg Pincus has extensive experience supporting high-growth companies to achieve large scale in their markets and we are sure this will be very relevant for the next steps.”
“We are very excited to collaborate with Warburg in this next phase of Contabilize’s growth and we are happy to continue being part of this journey”, says Rodrigo Costa, partner at Softbank Latin America Funds.
With the investment in Contabilizei, Warburg Pincus reaches a portfolio of 11 Brazilian companies. Of these, eight are technology. Worldwide, the manager has more than US$85 billion in assets under management and an active portfolio of more than 235 companies.
