Brazil Fintech Magie Secures $4M Investment for AI-Powered Financial Assistant

Magie, a Brazilian fintech startup, has raised $4 million in a seed round led by Lux Capital, marking the firm’s first investment in Brazil. The company, which has raised $5.1 million in total, is creating an AI-powered financial assistant that is designed to be an egalitarian tool for Brazilians, offering personalized financial advice and services.

• The current product allows people to send money and pay bills through WhatsApp.
• Magie is a broader bet on Brazil’s burgeoning fintech scene, which has been fueled by the massive success of Nubank.
• The company has acquired more than 12,000 users since launching in April, although the company has yet to monetize those users.

Lux Capital's Investment in Magie: A Bet on Brazil's Fintech Scene

For co-founder Luiz Ramalho and Lux partner Brandon Reeves, Magie is a broader bet on Brazil’s burgeoning fintech scene, which has been fueled by the massive success of Nubank, the Brazilian neobank that had a blockbuster IPO in 2021. Reeves, who’s been at the forefront of many of Lux’s international investments — particularly Sakana AI, the firm’s first Japanese bet — said he saw firsthand how quickly Brazilians were “generally early adopters of new financial products” on a recent trip to São Paulo.

Leveraging Pix: The Instant Payments Platform that Paved the Way for Magie

Reeves cited Pix, an instant payments platform that the country’s central bank rolled out in 2020; by 2023, almost 42 billion payments were sent using Pix, exceeding credit and debit charges combined, according to Abecs, a Brazilian association for financial services. Pix paved the way for Magie. Last September, Ramalho, a Rio de Janeiro-native, realized that Pix represented a major opportunity: It brought most Brazilians onto a common network, one that Ramalho could leverage. Along with co-founder João Camargo, they designed Magie as an AI chatbot in WhatsApp where users can send or receive money.

Magie's AI-Powered Financial Assistant: A Vision for Financial Empowerment

Ramalho’s ultimate goal is for Magie to be a more full-fledged financial assistant — and an equalizer. He hopes to potentially charge for a premium subscription, where Magie can help users work through financial decisions, like what kind of loan to take out and at which bank.

• Ramalho insists that Magie will be a more egalitarian tool, one without a vested interest in any one bank’s services.
• Magie's namesake, Lizzie Magie, the designer who created Monopoly, emphasizes a focus on everyone having access to financial opportunities, rather than one person dominating the game.

Magie's Vision for a More Equitable Financial Future

Ramalho’s vision for Magie is inspired by the game Monopoly’s original creator, Lizzie Magie, who designed the game to promote a more equitable distribution of wealth. Ramalho sees Magie as a similar force in the financial world, aiming to empower individuals and provide them with the tools they need to make informed decisions about their finances.

Magie's Competition: Banks and Other Financial Institutions

Magie faces competition from established financial institutions, such as Morgan Stanley, which launched its own AI-powered financial assistant in June. However, Ramalho argues that Magie will be a more egalitarian tool, one without a vested interest in any one bank’s services.

Magie's Approach: A Focus on User Retention and Financial Empowerment

The company's initial focus is on building a platform with strong user retention. Magie aims to provide its users with a personalized financial assistant that can help them make better financial decisions and achieve their financial goals. In the future, Magie plans to monetize its user base by offering premium subscription services that provide more advanced financial advice and services.