Pivotal to success in this latest fundraising effort has been investment from SoftBank, which is under the leadership of CEO Marcelo Claure, in Latin American technology companies as part of a BRIC strategy that aims to invigorate technological innovation on the continent.
This strategy has seen the launch of SoftBank’s Latin America Innovation Fund – with $2B to invest across Central and South America – in order to provide much needed capital and foreign direct investment (FDI) to the continent’s most promising entrepreneurs.
The $200m contribution represents SoftBank’s largest investment on the continent and makes true on their promise to “become a major investor in transformative Latin American companies that are poised to redefine their industries and create new economic opportunities for millions of people”.
Mercado Bitcoin will use the funds to increase the scale of its exchange operations in order to expand its offerings, alongside investing in infrastructure to meet the surge in demand for crypto in the region.
The company has seen significant growth over the past year, with its client base reaching 2.8 million in 2021 – more than 70% of the entire individual investors base on Brazil’s stock exchange.
Mercado Bitcoin – Brazil’s Unicorn
This Series B financing round comes only five months after Mercado Bitcoin’s Series A round in January 2021, led by G2D/GP Investments and Parallax Ventures with advisory participation from J.P.Morgan.
As a company Mercado Bitcoin has been profitable since 2018, and until a successful Series A funding round in January 2021 had been self-scaling, reinvesting its cash generation into exchange growth and cryptocurrency portfolio expansion, according to Parent Company CEO and 2TM Group Executive Chairman Roberto Dagnoni.
Mercado Bitcoin has a pattern of partnering with other blockchain innovators in Latin America too, in 2018 funding partner SoftBank launched its own blockchain aimed at facilitating global mobile payments.
As the crypto industry fight for dominance across De-Central America partnerships like these could prove critical to the long-term success of adoption and as “Millions of people around the world are realising that digital assets and cryptocurrencies are both innovative technologies and efficient stores of value – Brazil is no exception to that trend” according to Roberto Dagnoni.
More crypto news and information
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.