Business

To grow in Latin America, Swedish Sinch buys the Brazilian startup Wavy

Wavy belongs to the Movile group, which also owns the delivery startup iFood

Sinch and Wavy are joining forces to drive growth in Latin America. Photo: Screenshot/Sinch Website

The Swedish mobile messaging service provider Sinch is joining forces with the Brazilian messaging tool Wavy. In the deal, Sinch will pay BRL 355 million in cash for the acquisition of Wavy, and give 1,534,582 new shares for the Movile group, the group that owns Wavy and other companies such as iFood. According to O Estado de S.Paulo newspaper, the deal is expected to be fulfil in the next quarter.

According to an official statement by both companies, Wavy is today the second-largest messaging provider in Brazil with operations in Mexico, Colombia, Peru, Chile, Argentina and Paraguay. The company says that is now seeing year-on-year growth above 250%.

Enterprise customers relying on Wavy’s SMS capabilities include the state-owned Brazilian bank Caixa Econômica Federal. Wavy had also developed news ways of using WhatsApp. Customers in this segment include iFood, Avon and Ingresso Rápido.