Brazil's A5X raises $70M to challenge B3, hitting US$690.7M valuation
What's the deal? Brazilian derivatives exchange A5X has raised US$92.1M in a late-stage round that values it at US$690.7M. New shareholders Morgan StanleyDealroom has a profile for this one. Try Dealroom →, Goldman SachsDealroom has a profile for this one. Try Dealroom →, and Kaszek joined the fourth funding round, while XP exercised a purchase option to take a stake.
The round also drew a third investment from market makers IMCDealroom has a profile for this one. Try Dealroom →, Jump TradingDealroom has a profile for this one. Try Dealroom →, OptiverDealroom has a profile for this one. Try Dealroom →, and XTX Markets, alongside ABN Amro ClearingDealroom has a profile for this one. Try Dealroom →. A5X has now raised roughly US$186.7M in total.
What's the endgame? A5X aims to become the first serious rival to B3, until now Brazil's only operating exchange. Its planned products include a Ptax-based dollar contract, an interest-rate contract, commodity derivatives, and ETFs.
Why now? The exchange is finishing "phase 1" of submitting documentation to the Central Bank, after which it faces six to eight weeks of operational tests. "If everything goes well, we expect to start operations in the second quarter of 2027," says chief executive officer Carlos Ferreira Filho.
Chief financial officer Karel Luketic said the funds are enough to finance operations until A5X reaches breakeven. The company employs about 200 people, including roughly 70 who previously worked at B3.
Who's behind it? A5X's four founding shareholders — Luketic and Ferreira Filho, both former XP executives; Nilson Monteiro, founder of brokerage Ideal; and Julian Chediak of Chediak AdvogadosDealroom has a profile for this one. Try Dealroom → — retain control after the raise. ItaúDealroom has a profile for this one. Try Dealroom →'s Ideal brokerage is also a shareholder.
According to Monteiro, the new investors bring more than capital. "The US banks will be essential for A5X in working with international investors; XP should help us with its expertise in the domestic retail market; and Kaszek with all its knowledge of innovation and technology," he said. Kaszek, founded by Hernán Kazah and Nicolás Szekasy, was an early backer of Nubank and QuintoAndar.
What could go wrong? The launch hinges on Central Bank authorisation, and A5X still faces operational testing before it can trade. Ferreira Filho is betting on price to win share: "We will offer products at much more competitive prices than those currently available in the market."
The signal: The round ranks near the top of comparable late-stage deals — around the 95th percentile among 85 late-VC rounds in its geo-industry bucket over the trailing 48 months. It marks a rare, well-capitalised attempt to break B3's monopoly, with A5X joining MubadalaDealroom has a profile for this one. Try Dealroom →-backed Base ExchangeDealroom has a profile for this one. Try Dealroom → in lining up against the incumbent.
Read more: valorinternational.globo.com
Image credit: A5X
