Two Brazilian Companies Merged to Create a Super Fintech

Vindi, a Sao Paulo, Brazil-based provider of subscription/recurring billing and payment solutions, merged with Smartbill, a Sao Paulo, Brazil-based provider of a subscription management system.

The financial terms of the deal were not disclosed, but the merger of the two companies aims to consolidate the market of payments focused on the service sector in Latin America.

According to Gartner, by 2020, more than 80 percent of software vendors will change their business model from traditional license and maintenance to subscription. Latin America is also following the same trend, and represents an interesting opportunity for those who are able to overcome its specific challenges.

Companies like Thomson Reuters, Movile, B2W, Empiricus, Serasa Experian, Buscape, Smartfit, Editora Abril and the most important subscription businesses are using Vindi and Smartbill solutions.

In Brazil, process subscription billing was not a easy thing. The Brazilian financial environment has some particular rules. Banks are not opening their APIs, the regulations are very hard to comply with, taxes are not integrated with billing systems and recurring payments are very hard to provide, because of existing whole payment methods. Boletos (Brazilian invoice slips), fraud prevention, debit account and control delinquency are challenges to all type of companies.

As a comparison (and analogy), the agreement in terms of complementarity of solutions and strategies would be as if Zuora (USA) and Recurly (USA) merged.

About

Vindi is a platform (PCI Compliance) that provides subscription and recurring billing, payment solutions to Saas companies, e-commerces, financial services, gym clubs, education business, real state and all subscription based companies. Vindi had already acquired two other fintechs: Fast Notas (SaaS focused in tax billing) and Aceita Facil (a payment facilitator) in 2016.

Smartbill is a cloud-based subscription management system that allows companies of all sizes to join the subscription business model. The system covers all the subscription cycle: (a) Subscription – business rules, pricing, payment method, parameters, etc, (b) invoicing, (c) billing, (d) payment conciliation and (e) upgrades, downgrades, add-ons, renewals.

Source: Vindi