Brazil-based investment firm Warren recently revealed that it finalized a BRL 300 million (appr. $55.16 million) funding round that was led GIC, which is Singapore’s sovereign fund that has made other investments in the country’s Unicorns such as Nubank and Hotmart.
Warren’s investment round includes contributions from Ribbit, Chromo Invest, Kaszek, QED Investors, Meli Fund and Quartz. The company’s Series C has been finalized in less than a year after it acquired BRL 120 million in capital in a previous round in July 2020.
GIC will be taking a seat on Warren’s board as part of the investment deal. Established in 2017, the company acts as a broker and fund manager with BRL 6 billion in AUM and around 200,000 clients (representing a 1,000% growth in new customers since April 2020, when Warren was managing BRL 600 million in assets). This, according to statements (shared with LABS) from Tito Gusmão, the firm’s Chief Executive.
The company’s aim now is to double the amount of assets and serve 300.000 clients by the end of this year.
Warren’s management noted that the funds raised will be used to recruit more talent. The company intends to grow to around 400 to 600 workers. It will also be focused on marketing and further expanding its Warren for Business platform, which is intended for financial market professionals. Warren may also have strategic acquisitions it may announce in the future.
Warren previously secured BRL 25 million through its Series A round (in 2019) – which was led by VC fund Ribbit. Last year, the firm secured BRL 120 million through a Series B round led by QED Investors.
Warren’s management also explained that they’re not really reinventing the wheel, but are trying to streamline the current brokerage industry. Warren uses a B2B and B2C model along with a platform for partners such as XP and BTG, who are investment advisors that operate with the CVM (the country’s Securities and Exchange Commission), and not the autonomous agent.
Gusmão noted that besides XP and BTG brokers, his company’s primary competitors are traditional banks. He also pointed out that 90% of Brazilians keep their money in five major banks and 90% of Americans hold their funds with brokerages.
Warren has not shared its company valuation following its latest investment round. However, Gusmão said it may consider an IPO in the coming years.