Technology

Brazilian fintech Magnetis raises an $11 million round and launches its own brokerage service

Magnetis wants to increase its assets under management to BRL 1 billion in the next 12 months

Luciano Tavares, founder and CEO at Magnetis
Luciano Tavares, founder and CEO at Magnetis. Photo: Luciano Tavares LinkedIn
  • Magnetis is launching its own brokerage to support clients’ financial operations;
  • The fintech’s core business is to provide an automated wealth management solution for Brazilian investors.

Magnetis, a Brazilian digital investment management fintech, received BRL 60 million (about $11 million) in an investment round led by Redpoint eventures (the same that has already invested in Latin America Unicorns such as Rappi, Gympass, and Creditas), with the participation of Vostok Emerging Finance, reported Valor Investe. Magnetis is also launching its own brokerage service to support clients’ financial operations.

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The fintech provides an automated wealth management solution for Brazilian investors. Luciano Tavares, founder, and president of Magnetis, told Valor that the amount will be used for developing technologies and features to improve customer experience. “With the integrated broker, the client will have a more complete option, with an integrated interface. It was not our initial plan to have a home broker. There are already several investment platforms in Brazil, we do not want to be the 20th doing the same thing,” he said.

Magnetis wants to transform itself into a full-service brokerage for the Brazilian investor and for that it wants to increase its assets under management from BRL 430 million to BRL 1 billion in the next 12 months.

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According to Revista Pegn, Magnetis differential is in its robots: they take into account the user’s profile and their financial goals to set up an automatically managed portfolio.

It is the third investment round raised by the fintech, says Exame. Before the current round, Magnetis had received an investment of BRL 3 million in June 2015 from Monashees Capital and Redpoint eventures. Then, in April 2018, it received BRL 17 million from the venture capital funds Vostok Emerging Finance and Monashees.