A Latin American Payments Startup Tries to Defy the Fintech Slump

Fintech startups have suffered a difficult fundraising climate for two years, after a cocktail of rising interest rates and cooler e-commerce spending made capital harder to come by. But one startup based in São Paulo is trying to defy the slump with an ambitious new fundraise.

CloudWalk, a Latin America–focused fintech startup that sells payments products to small and medium-size businesses, plans to raise up to $400 million at a valuation of at least $4 billion, according to two people who discussed fundraising plans with the company. Financial Technology Partners, a fintech-focused investment bank, is working on the deal, according to the people, and has advised CloudWalk in previous transactions. 

CloudWalk has big ambitions for the raise, as its target would more than double its valuation. The price it ultimately fetches could be a bellwether for fintech, which has been overshadowed by dealmaking in generative artificial investments.