Telecom Vivo Invests in Open Banking Klavi in a $15 Million Round Alongside Iporanga Ventures and Parallax Ventures

Vivo (NYSE:VIV) invests in Brazil open banking Klavi alongside Iporanga Ventures and Parallax Ventures in a $15 million investment round. Vivo Ventures was the vehicle used by the Telecom to lead the round. The round was also joined by the Chinese investment fund GSR Ventures, which has in its investment portfolio the Chinese mobility app Didi. The Chinese banking infrastructure provider CIP S.A. also participated in the deal.

Klavi will use the funds to strengthen its technology area in innovations in its B2B services and its data processing sector.

Founded in 2020 by Bruno Chan and Stone Zheng, Klavi is the pioneer in generating insights from the Open Finance data in Brazil. The company’s target audience are financial and non-financial institutions that need a solution for the portability of open banking information and data processing.

As Vivo invests in Klavi, the startup expects to grow its base to more than 100 active customers by the end of 2022, and to reach more than 500 by December 2023. According to Chan there is a large gap between receiving Open Finance data and its use by businesses, and he sees Klavi facilitating and accelerating the entry of new players through Klavi’s SaaS technologies.

The Strategy in Vivo’s Investment in Klavi

For Rodrigo Gruner, Vivo‘s director of innovation and New Businesses, Vivo investment in Klavi, and its first CVC investment, reinforces Vivo’ strategy as a digital hub, developing businesses in areas that go beyond connectivity. Vivo Ventures looks for startups with high growth and return potential which can also be connected with Vivo’s business platform to generate value for both, he told the press.

The Esquires and the Firms Behind the Deal

Bronstein, Zilberberg, Chueiri & Potenza Advogados represented and acted as Brazilian legal counsel to Klavi. 

Partner Eduardo Zilberberg led the Bronstein Zilberberg deal team, which included associates Giuliana Veronez Primati, Amanda Iranaga and Luiza Pascowitch.

The Chamber and Partners 2022 Bronstein Zilberberg is a full service law firm based in São Paulo and is highly recognized as one of the top M&A Venture Capital law firms in the country. 

Foley & Lardner LLP acted as U.S. legal counsel to Iporanga Ventures.

The author of Latin America’s Investment Boom and the Pitfalls of American Jurisdiction, Foley’s Silicon Valley partner Andre Thiollier led the Foley’s legal deal team in structuring the U.S. and international aspects of the transaction with contribution from corporate associates Ashley Youn-Jae Lee and Talita Guedes Duarte.

The Chambers and Partners 2022 and  Am Law 50 Foley & Lardner is a US-based full service global law firm with over 26 offices around the globe.

Beyond the Law.News was not informed of nor could it verify the name of the law firms and financial advisors representing or acting on behalf of other parties mentioned in this story.