Banco BS2, a Brazil-based financial services provider, announced today that the company has acquired the financial technology firm WEEL, to expand its product offering.
According to the announcement, Banco BS2 is planning to develop an integrated offering for small and medium-sized enterprises (SMEs) including banking and credit services. The Brazil-based bank mentioned that the latest announcement is the company’s first major strategic move since the appointment of the new CEO, Marcos Magalhaes who took office in May 2021. Magalhaes has extensive experience in Brazilian financial markets.
Commenting on the latest merger, Magalhaes said: “We have ambitious growth plans. WEEL has the best products and the best digital credit expertise. It perfectly complements our offering and positions us as the leading digital financial services provider for small and medium-sized companies. The SME segment has often been ignored. Banking product development generally focuses only on individuals and large corporations. We're going to change this logic."
Brazil is a well-known destination for innovations related to financial technology and the cryptocurrency market. Earlier this year, Mercado Bitcoin , the largest Bitcoin Exchange in Brazil, raised nearly $38 million in a funding round to accelerate the company’s expansion in global markets.
Merger of BS2 and WEEL
WEEL has facilitated several SMEs in Brazil through innovative fintech solutions. According to the press release, the company has more than 15,000 customers in its database.
“WEEL's staff will be fully integrated to BS2. Simcha Neumark, Founder and CEO of WEEL, will become an executive and a member of BS2's Board of Directors. WEEL's current shareholders, such as Monashees Capital and Franklin Templeton, will become BS2 shareholders after the approval of regulatory competent agencies,” BS2 mentioned in the official announcement.
Financial technology firms around the world have seen consistent growth since the start of 2020. In May 2021, Circle, the US-based financial technology company, announced that the company has raised $440 million from leading institutional and strategic investors to drive global growth and market expansion.
