Avenue buys startup that facilitates tax submitting with shares

Acquisition of myProfit was made 70% in equity and could add 40,000 clients from other brokerages

The brokerage firm Avenue has just completed the acquisition of the myProfit platform, which helps investors understand and automate income tax in financial transactions – one of the main items that scare off those interested in buying shares abroad due to ignorance of taxes.

The two companies had already worked in partnership since their first months of foundation, in 2020, with myProfit offering the service directly to Avenue customers in a white label product. This relationship directly influenced the closing of the transaction, which was made 70% in equity and 30% in cash, in an undisclosed amount.

The platform will continue to act independently, serving over 50 other brokerages and having founder Rodrigo Poveron as CEO — and now also a partner at Avenue. The myProfit platform has a history of operating around 300,000 personal income tax returns.

“The great value of the transaction for us is the technology part and also the customers they bring, which are between 30 and 40 thousand customers from other brokerages. While they don’t automatically become Avenue customers, it is an important addition to the group,” Emmanuil Inglesis, CFO of Avenue, told Pipeline.

The expectation is that the deal will pass for evaluation by the Central Bank until the first half of next year, after the evaluation by the regulator of the purchase of Itaú’s stake in Avenue, announced four months ago. In July, the bank closed the purchase of 35% of the brokerage and may become controller in two years.

Avenue has around 500,000 investors, with just over R$6 billion in custody. In order to reinforce its structure in the last year, the company bought the exchange broker Bexs and securities distributor Coin and, before the transaction with Itaú, it was considering the purchase of a small American bank.

Source: Pipeline Value