J.P. Morgan acquires 40% stake in Brazilian digital bank C6

RIO DE JANEIRO, BRAZIL – U.S. bank J.P. Morgan has acquired a 40% stake in Brazilian digital bank C6 Bank for an undisclosed amount. Founded in 2019 by former BTG executives, C6 has more than 7 million customers and is present in every municipality in Brazil.

“We are excited to partner with one of the fastest growing digital banks in Brazil,” Sanoke Viswanathan, CEO of international retail banking at J.P. Morgan, said in a statement. “We admire C6 Bank’s strategy and management. With an impressive platform of products and services, they are well positioned to continue their growth trajectory and build a great franchise. We will support the bank’s growth acceleration in its quest to become a leading provider of financial services in Brazil.”

“Partnering with J.P. Morgan, the largest bank in the Western Hemisphere and one of the most prestigious banking brands in the world, is a game-changer,” said Marcelo Kalim, CEO, and co-founder of C6 Bank. “This strategic partnership will allow us to grow our business even further and continue to offer the best financial products to Brazilian consumers.”

“We look forward to leveraging our global capabilities and J.P. Morgan’s expertise to accelerate C6 Bank’s growth,” said Daniel Darahem, senior country officer for Brazil at J.P. Morgan. “We are also pleased to support the country’s efforts to develop and transform its retail segment.”

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J.P. Morgan has had a presence in Brazil for nearly 60 years, principally as an investment bank and in wealth management. The retail segment, under the Chase brand, offers a broad platform of products to consumers in the U.S. and has more than 55 million digitally active customers.

Last December, C6 announced a R$1.3 billion (US$260 million) capital increase and was valued at R$11.3 billion (US$2.26 billion) at the time.

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The money came from a group of 40 investors, including individuals and family offices, all Brazilian. At the time, Kalim told Valor that the institution was preparing for an IPO, which could take place within a year.

C6 posted a net loss of R$606.950 million in 2020, 149.7% worse than the loss of R$243.034 million calculated the previous year. According to the institute, the result is “due to investments in the further development of the operational structure.”