Magie, a Brazilian fintech startup, recently raised $4 million in a seed round led by Lux Capital, marking the firm’s first investment in Brazil. With a total funding of $5.1 million, Magie aims to create an AI-powered financial assistant. Currently, their product allows users to send money and pay bills through WhatsApp.
Lux Capital’s decision to invest in Magie reflects their belief in Brazil’s thriving fintech scene. The success of Nubank, a Brazilian neobank that had a highly successful IPO in 2021, has fueled the growth of the fintech industry in the country.
Brandon Reeves, a partner at Lux Capital, witnessed firsthand how Brazilians are early adopters of new financial products during a recent trip to Sao Paulo. He mentioned Pix, an instant payments platform introduced by Brazil’s central bank in 2020. By 2023, Pix had processed nearly 42 billion payments, surpassing credit and debit charges combined. This rapid adoption of innovative financial solutions paved the way for Magie’s success.
Magie’s co-founder, Luiz Ramalho, who is originally from Rio de Janeiro, recognized the opportunity presented by Pix. He and his co-founder, João Camargo, designed Magie as an AI chatbot on WhatsApp, enabling users to send and receive money. Since its launch in April, Magie has gained over 12,000 users, although the company has not yet monetized this user base. Ramalho’s primary focus is on building a product with high user retention before exploring monetization options.
However, Ramalho’s ultimate vision for Magie goes beyond a simple money transfer service. He wants Magie to become a comprehensive financial assistant that can help users make informed decisions about their finances. For example, Magie could assist users in choosing the right loan and the best bank for their needs. This vision puts Magie in direct competition with banks like Morgan Stanley, which launched its own AI-powered financial assistant in June.
Ramalho differentiates Magie by emphasizing its egalitarian nature. Unlike banks, which may have a vested interest in promoting their own services, Magie aims to provide unbiased advice and recommendations. Ramalho sees Magie as an equalizer, ensuring that users have access to the best offers from various banks. This aligns with the company’s namesake, Lizzie Magie, the creator of Monopoly, who emphasized a more inclusive approach where everyone benefits.
In conclusion, Magie’s recent funding round and its vision for an AI-powered financial assistant position the company as a significant player in Brazil’s fintech landscape. With its focus on user retention and providing unbiased financial advice, Magie aims to empower users and level the playing field in the financial industry. As Brazil’s fintech scene continues to thrive, Magie’s innovative approach holds great potential for success.
