Vtex raises $225m, becomes newest Brazilian unicorn

Vtex, a supplier of systems for electronic commerce, announced Monday it has concluded a new fundraising round of $225 million and is now valued at $1,7 billion — from $450 million before the operation. The firm joined the growing list of Brazilian unicorns that includes car-hailing company 99, delivery service firms iFood and Loggi, real estate startups Loft and Quinto Andar and fintech NuBank. The round attracted funds and asset managers Tiger Global, Lone Pine Capital, Constellation, Endeavor Catalyst and Softbank. “Vtex will use the proceeds to make acquisitions, hire talent, improve its platform and accelerate growth in the US, Europe and Asia Pacific markets,” the company said in a statement.

Source: Valor International

https://www.valor.com.br/international/briefs

Rio Alto seeks investors to expand renewable energy projects

Renewable energy group Rio Alto is seeking investors to expand. It is building a solar complex with 364 megawatts in Paraíba and has the goal to almost quadrupling its portfolio of solar projects by 2023, what would demand R$2.4 billion in investments. Partners Rafael Brandão and Edmond Farhat are studying the option of going public, taking advantage of the wave of IPOs, and already hired banks XP Investimentos and BTG Pactual. But a final decision was not made and they don’t exclude the possibility of a strategic partnership.

Source: Valor International

https://www.valor.com.br/international/briefs

New registration system will transform insurance sector

The Brazilian insurance industry is on the verge of a change that could lead it to the largest technological leap in decades. As of November, policies will be subject to registration system through which the Superintendency of Private Insurance (Susep) intends to expand its supervisory capacity and, at the same time, organize data to enable new business models. The new system will give the regulator access to insurance information in real time, facilitating risk control. If the model had already been in place, Susep could, for example, have identified insurers’ exposure almost instantly in the breach of Vale’s dam in Brumadinho, Minas Gerais, and in Odebrecht’s judicial recovery – two events in which data collection, done manually, took no less than six months each.

Source: Valor International

https://www.valor.com.br/international/briefs

Plan for low carbon emissions in agriculture needs tuning

The Low Carbon Agriculture Plan (ABC) presented by Brazil as strategic to meet its emission reduction goals in the Paris Agreement completes ten years with only part of its commitments achieved. Expectations have been exceeded in the adoption of some agricultural technologies, but the country is still a long way from the goals for livestock and forests. Analysis by consultancy Agroicon concluded that it is necessary to expand the scope and governance of the plan, placing emphasis on adapting agriculture to the climate. This is an agenda that has been gaining ground in international forums, since agriculture production is not only part of the cause, but also a victim of climate change.

Source: Valor International

https://www.valor.com.br/international/briefs

Localiza and Unidas merger may create rental car giant

Localiza, the largest car rental company in the country, announced Wednesday a merger agreement with rival Unidas, in a deal that, if approved by the Administrative Council for Economic Defense (Cade), will create a company with an estimated market value of around R$50 billion. Together, Localiza and Unidas, second larger rental car firm in the country, have today 47% of the total market. Movida is third with 11%. Sector analysts believe Cade may impose some restrictions on the merger, since in the retail car rental segment, Localiza and Unidas account for 65% of the market. Regardless, investors welcomed the proposed deal. Localiza’s shares closed up 13.97% and Unidas gained 17.27%. 

Source: Valor International

https://www.valor.com.br/international/briefs

C.Vale to build soy crushing plant in Paraná

C.Vale, one of the largest agricultural cooperatives in Brazil, plans to build a soy processing plant in Palotina, Paraná, that should require investments of R$552 million over eight years. It will be the first soy crushing plant of the group, which boasts 23,000 members and posted around R$9 billion of revenue last year. Chairman Alfredo Lang has signed a protocol with the Paraná state administration providing for special fiscal conditions for the new facility. The plant will have the capacity to crush 2,500 tonnes of soybean a day, extendable to 3,000 tonnes.

Source: Valor International

https://www.valor.com.br/international/briefs

Vinci, Fulwood to invest R$1bn in warehouses

Asset manager Vinci Partners and Fulwood Condomínios Logísticos have partnered to invest R$1 billion in high-end warehouses in São Paulo state and Extrema, Minas Gerais. The joint venture’s portfolio is expected to be worth up to R$2.5 billion when these assets are ready and rented. The decision to create the joint venture was encouraged by the demand for warehouses by e-commerce companies, auto part makers and the food industry. The investment is expected to create a portfolio of up to 600,000 square meters of warehouses to be developed in three years with the sale of assets in four years. A fund of up to R$800 million will be raised for the investments and the remainder will come from the debt market.

Source: Valor International

https://www.valor.com.br/international/briefs

Textile industry’s demand for cotton on rise

After the sluggish first half, the textile industry resumed production virtually at the same time that a new, record crop hit the market driving prices up. Data from trade group Abit show that since the companies resumed activity, in July, prices rose around R$2.70 a pound in the domestic market to R$3.35. Yet demand is expected to decrease and stocks to build up. A major textile buyer says prices are up because stocks were low when production resumed and suppliers took advantage of that to negotiate their cotton at higher prices. With a larger supply in the market now, prices are starting to fall, although current prices are still 26% up compared with the same period of 2019.

Source: Valor International

https://www.valor.com.br/international/briefs

Startup Quasar Flash raises R$25m

Quasar Flash, a startup that makes advances on receivables, closed a fundraising of R$25 million in a round led by the Valor Capital Group, from the US. The resources will help it to expand investments in people and technology. With customers ranging from individual microentrepreneurs to companies with annual earnings of R$20 million, Quasar Flash offers duplicates discount and plans to carry out credit operations with guarantee on credit card receivables starting in November – when the Central Bank (BC) rule on these assets. “We want to operate among the smallest companies, in the least-assisted group [in terms of offering credit],” says Carlos Maggioli, founding partner and president of fintech.

Source: Valor International

https://www.valor.com.br/international/briefs

Copel eyes renewables

Electric utility company Companhia Paranaense de Energia, Copel, is looking into expanding its business in the energy generation and transmission segments, with preference in brownfield assets. “Renewables are the ‘sexy’ assets in the market, we pay close attention to that,” CEO Daniel Slaviero says. The executive did not comment on preferences for generation sources, but stated that the company needs to “break the solar barrier,” a source that does not yet have in its portfolio.

Source: Valor International

https://www.valor.com.br/international/briefs