TLDR:
– Lux Capital led a $4M seed round investment in Brazilian fintech Magie, their first investment in Brazil.
– Magie is creating an AI-powered financial assistant that allows users to send money and pay bills through WhatsApp.
Lux Capital, a venture capital firm, recently made its first investment in Brazil by leading a $4 million seed round for AI fintech startup Magie. This funding round marks a significant milestone for the company, which has now raised a total of $5.1 million. Magie is working on developing an AI-powered financial assistant that currently enables users to send money and pay bills using the popular messaging platform, WhatsApp.
The cofounders of Magie, Luiz Ramalho and João Camargo, identified a major opportunity in Brazil’s fintech landscape with the introduction of Pix, an instant payments platform launched by the country’s central bank in 2020. Leveraging this platform, Magie has already attracted over 12,000 users since its launch in April. Despite this early success, the company has not yet started monetizing its user base.
Ramalho envisions Magie evolving into a full-fledged financial assistant that can provide guidance on various financial decisions, such as choosing the right loan or bank. The startup aims to offer a premium subscription service in the future to generate revenue. However, Magie faces competition from traditional banks, with Morgan Stanley launching its AI-powered financial assistant earlier this year. Ramalho emphasizes that Magie’s goal is to provide unbiased financial advice without promoting any specific bank’s services.
The company’s namesake, Lizzie Magie, the inventor of Monopoly, inspires Magie’s vision of creating a financial tool that benefits all users rather than favoring specific institutions. With Lux Capital’s backing, Magie is poised to capitalize on Brazil’s growing fintech ecosystem and offer innovative solutions to users seeking financial assistance.
