Brazilian digital bank PicPay, the financial arm of the J&F group, reversed the negative result of $98 million suffered last year by reporting a net profit of $3.8 million — the first registered profits since its foundation — anticipating in such a manner the company’s break even.
Picpay was expecting to break even only in the middle of 2024.
The company also achieved its first earnings before interest, taxes, depreciation, and amortization (Ebitda) in a quarter of $6.3 million.
Revenue totaled $144 million in the last three months of 2022, 75% higher than in Q4 of the previous year.
Total transactions on the company’s platforms soared 66% in the last three months of last year to $10.9 billion, mainly driven by services like Pix installments.
PicPay’s NYSE goals
In April 2021, the Brazilian fintech tried to become a publicly traded company on Nasdaq, but the goal had to be canceled from the early stages of the process in June of that year.
At the time, the syndicate of banks, formed by BTG Pactual, Bradesco BBI, Santander, and Barclay’s, had stipulated for the company the goal of reaching a valuation of $20 billion. But this became impossible to achieve for PicPay.
The fintech was using rampant cash burn to grow in the market. And at that point, it carried a loss of $152 million, which later expanded to $360 million — slowly declining until now.
Increasing liquidity with a savings account
Earlier this month, PicPay surpassed a million users of its app’s savings account — the so-called “Cofrinhos” —which separates the client’s money according to their specific goals and yields 102% of the Brazilian Interbank Deposit Certificate (CDI).
With the creation of the savings account, PicPay surpassed its portfolio’s $1.9 billion balance mark, as the modality increased liquidity in the payment system’s accounts.
It is now believed that the fintech will again prepare to go public on the New York Stock Exchanges between this year and 2024.
Jorge C. Carrasco is a Contributing Reporter at Fintech Nexus. He reports on fintech, economy, banking, startups, and technology, covering the most impactful stories from a Latin American perspective.
He has contributed to several international publications, such as Foreign Policy, The Spectator Australia, Estadão, Época, Washington Examiner, and Quillette. Originally from Havana, Cuba, he is now based in Brazil.