The technology company N5, founded by Argentines, accelerates its expansion plan in the region. What kind of fintech companies can apply to be bought.
Argentina’s fintech universe was revolutionized by an announcement made on Wednesday by the firm N5, a multinational technology company specializing in the financial sector: it said that it has $20 million to buy small software companies in Argentina, as part of its expansion plan in the country and the region.
The company was founded by Argentines in 2017 with an investment of $100 that was the cost of registering in the United States. It has a presence in 15 countries and is based in São Paulo, Brazil, where its CEO and founder, Julián Colombo, a former Santander, lives.
Its specialty is offering specific software solutions for traditional banks and digital finance entities. Also insurance companies. Its client portfolio includes Mastercard, Santander, Credicorp Bank, Zurich, Sudameris, N26, Farmers Insurance, BCI, Banco Atlas, Itaú and BCP.
Although the company’s revenues have been growing at a rate of 200% per year, the money for this shopping trip in Argentina comes from a capital round it made in September of last year in the U.S. in which it raised almost $80 million.
In this investment round, the first and only so far, N5 added as strategic partners Illuminate Financial (a venture capital firm in which J.P. Morgan, Citi, Barclays and BNY Mellon participate) and the funds Exor Ventures, Overboost, LTS Investments, Madrone Capital and Arpex Capital.
In addition, Exor Ventures, a holding company controlled by the Agnelli family (Ferrari, Stellantis) and Madrone Capital Partners, owned by the Walton family (Walmart), entered as shareholders in the same operation.
With this strong financial backing, N5 (the letter N is pronounced in English, to play on the phrase “in five”, alluding to the speed with which the company intends to solve the needs of its customers) will go out this year to tempt small software and professional services companies linked to the financial industry in Argentina.
Technology Companies: How to Apply
To be an attractive candidate, in addition to specialization, companies must preferably have an annual income of at least $1 million. Although he clarified that he has already started conversations with potential candidates, the firm published a link where applicants interested in selling their companies can register: www.market.n5now.com
The multinational has a habit of developing its products from its own programming laboratories. However, this time he wants to go in a different direction: “Our focus is, and always will be, to offer something differentiated to our customers. And while N5’s philosophy is to build all the technology, there are some specific functionalities that we can complement more quickly in our solutions with the help of other skilled companies,” Colombo said to support this exception.
Until the end of 2023, the company had been billing around US$20 million per year. And according to its founder, the projection for 2024 is to reach $60 million. The number of customers also grew exponentially. The latest data indicates that there were 65 worldwide. And Colombo believes they will be able to quadruple that figure by the end of this year. Despite the fact that its founders are locals, only 3% of the clientele is in Argentina. Now, the intention is to add national talent to develop products for users in the country and abroad.
“We have always been a company that acts with great caution, spending considerable time before making any decisions. We serve a traditionally risk-averse industry, which makes our assessment approach extremely prudent. Our north star continues to be how we can deliver even more value to our customers, improving our services and solutions to meet their needs effectively,” says Colombo.
