However, there are some encouraging signs beginning to emerge. With the perception that the cycle of high interest rates in Brazil has peaked and that a rate-cutting process might occur around the turn of the year, a window for new offerings could potentially open.

As reported by Valor, the companies poised to lead the market are large, traditional sector firms, such as the sanitation company Aegea, gas distributor Compass, Votorantim Cimentos, and tire retailer Cantu. However, recent improvements in the technology sector have sparked hope, especially for Brazilian fintechs.

During Brazilian Week in New York last week, several fintech CEOs circulated through numerous conference rooms, meeting with experts, investment bankers, and, most importantly, investors. In this context, some fintech names are beginning to stand out. The list includes companies like PicPay, Cloudwalk, Agibank, and Neon, among others.

At the Latin America Private Tech Trailblazers Summit hosted by Bank of America, its president for Latin America, Augusto Urmeneta, expressed optimism about the tech sector. He noted that in recent weeks there has been a rotation of American companies (the "Magnificent Seven") to companies from other regions, including Latin America. "Things are changing; there's a rotation. Latin American techs have become too cheap to ignore," said the BofA executive.

Bruno Diniz, an innovation specialist and partner at Spiralem consultancy, remarks that the interest rate hikes and, more recently, the tariff war in the U.S. have closed the window for IPOs. But this scenario is beginning to shift and may become more dynamic in 2026, with news of offers from international companies like Chime, Monzo, Revolut, Klarna, among others.

"In general, when it gets to IPOs, companies are at a higher level of maturity, having already raised several rounds of private funding. It becomes particularly relevant when fintechs also have operations outside Brazil, especially for international listings, as many of these companies are targeting," he comments.

He also notes that with a greater scarcity of capital, venture capital funds have been pressuring their investees in recent years not to focus solely on growth but also to aim for profitability. "This element may also be seen in new IPO processes. In the past, IPOs occurred for companies focused only on 'growth' and that incurred losses, but I understand the market will view this differently."

In a recent report, Fitch indicates that Latin American digital banks have significant growth prospects, focusing on underserved retail segments and SMEs (small and medium-sized enterprises) and individuals seeking enhanced customer experiences. "In Brazil, regulators have embraced innovation, allowing newer, smaller companies to increase competition and promote the idea that a larger number of market participants can offer better services. [...] Latin American countries are making significant strides in technological development, with Brazil leading the region's tech industry and boasting a well-developed infrastructure, with an emphasis on e-commerce and mobile connectivity."

Among the fintechs, PicPay is likely the closest to a potential IPO. With over 60 million accounts, in August last year, the company began hiring a syndicate of banks to prepare its public offering in the United States, led by Citi, but the offering did not move forward at that time. The company is controlled by J&F Holding, owned by the Batista family, which is currently promoting the listing of another of its companies, JBS, in the U.S.

In March, during the announcement of the 2024 results, Valor asked PicPay CEO Eduardo Chedid about the potential IPO. He reiterated that this plan is on the radar but emphasized the need to wait for a more favorable market window. "We have been building a story of growing and relevant results, but we are also not in a rush [for the IPO]."

Also at the forefront of the list is Cloudwalk, the owner of InfinitePay point-of-sale machines. CEO and founder Luis Silva has mentioned several times plans for an IPO, possibly this year. In February, he told Valor, however, that a public offering was not in the plans for the coming years. "We are generating significant cash but also investing heavily. If we proceed with an IPO, it will be outside Brazil, but for now, it's not on our radar."

However, the market has heated up since then. When contacted, Cloudwalk stated that it is not considering this topic in short-term planning. "We continue to closely monitor the macro scenario and are ready to internally assess opportunities in this regard. CloudWalk continues to grow consistently and remains financially strong, crossing the $1 billion mark in annualized revenue, with 90% year-over-year growth."

A bit less ready, but still in line for a potential IPO, are names like Agibank and Neon. In October last year, Agibank hired Goldman Sachs to sell a minority stake, while the IPO window was not open. It ended up receiving a R$400 million investment two months later from the newly created private equity fund of Daniel Goldberg, Lumina Capital Management, and was valued at R$9.3 billion.

When contacted, Agibank stated that it "permanently monitors market developments and focuses on initiatives that strengthen its sustainable growth strategy and long-term value generation."

Neon, one of Brazil's oldest digital banks, founded in 2016, reached "breakeven" — the point when a company breaks even and begins to profit — at the end of last year. The institution reached 32 million clients, with a credit portfolio of R$6 billion, including credit cards, personal loans, and payroll-deductible loans.

When questioned by the press, Neon stated that it views an IPO as a natural step in its growth journey. "Currently, the company remains focused on better serving Brazilian workers, consolidating its operation, and expanding its customer base with sustainable profit. The company also continues to strengthen its governance and processes to be prepared to seize opportunities in the capital market."

Among other potential fintech IPO candidates are names like Creditas and Ebanx. Creditas reported an adjusted loss of R$106.3 million in 2024, a 72.5% improvement over the R$386.2 million deficit in 2023. The company had reached the breakeven event at the end of 2023 but decided to focus on accelerating growth, affecting the final result. Gross profit was R$889 million, with a 44.8% expansion.

The founder, Spaniard Sergio Furo, mentioned years ago the possibility of going public. The company did not immediately comment when queried by Valor.

Ebanx filed a confidential IPO request in the U.S. in 2021, which could have valued it at nearly $10 billion. However, with the decline in market value of companies with a strong technological bias a few months later, the plan was shelved.

Founded in Curitiba (PR) in 2012, Ebanx operates in 29 countries in Latin America and Africa, as well as India, with more than a hundred payment methods and an equal number of local partners. When contacted, Ebanx declined to comment.

Other fintechs, though still on the sidelines, include QI Tech, Dock, and OpenCo. At C6, founder and CEO Marcelo Kalim once predicted an IPO in 2021, but now says that possibility is off the table. "I am increasingly convinced of the benefits of remaining a private company. I have absolutely no intention of going down that path."