$100m boost! Matera sets sights on transforming North American banking with Warburg Pincus

Matera, a leading banking software provider based in Brazil, has announced a substantial $100 million investment from global growth investor Warburg Pincus. This significant infusion of capital marks a pivotal moment for Matera as it plans to expand its operations into the North American market and further enhance its product development initiatives.

Expanding Market Presence and Product Suite:

Founded over 30 years ago, Matera has built a reputation for delivering superior core banking, instant payment, and QR code payment solutions. The company currently serves more than 250 financial institutions worldwide, including two of the top three global banks and over one-third of all Brazilian banks. Matera’s growth trajectory has been impressive, with a fourfold increase since 2020, culminating in $77 million in revenue in 2023 while maintaining robust profitability.

Strategic Investment for Future Growth:

The new funding from Warburg Pincus will empower Matera to tackle two major challenges in the banking sector: core banking modernization and the creation of real-time digital user experiences, especially amid outdated legacy infrastructures. Their flagship product for North America, dubbed ‘Digital Twin,’ is a high-performance ledger designed to integrate seamlessly with existing banking platforms, enhancing operational efficiency and customer service capabilities.

Innovation in Payment Solutions:

Matera has been at the forefront of the digital payments revolution in Brazil, significantly contributing to the development of the Central Bank’s real-time payment rails, known as “PIX,” which now accounts for over 40% of all electronic transactions in the country. Matera’s systems process over 5 billion transactions annually, with a substantial portion initiated via QR code scans. The North American expansion will see Matera introducing these advanced payment solutions, adapted to meet the local market demands.

Leadership Insights:

Carlos Netto, Co-Founder & CEO of Matera, expressed his enthusiasm for the new venture: “PIX set the standard for the digital finance revolution. At Matera, we know first-hand the pressure for banks to modernize their infrastructure to keep up with innovative new payment methods such as instant payments and pay-by-bank. We’re honored to leverage our PIX expertise with proven solutions to help financial institutions across North America keep pace with their customers’ digital demands,” said Netto.

Henrique Muramoto, Managing Director at Warburg Pincus, also highlighted the strategic value of investing in Matera. “We have been closely tracking Matera as PIX emerged in Brazil and have seen first-hand their ability to innovate and deliver world-class, mission-critical software that is both scalable and consistent. We now look forward to expanding this expertise into North America where we see immense opportunity for Digital Twin to help banks seamlessly modernize their core systems,” Muramoto noted.

Advisory and Future Prospects:

Bank of America and Freitas Leite acted as advisors to Matera during this transaction. Looking ahead, Matera’s expanded product line and geographic footprint are expected to not only enrich its service offerings but also significantly enhance its market competitiveness in the evolving global financial landscape.