Chilean Unicorn Betterfly Buys Brazilian Startup SeuVale

One year since landing in Brazil, Betterfly has acquired SeuVale, which offers flexible benefit options

Betterfly buys Brazilian startup SeuVale.
November 10, 2022 | 06:07 PM

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Bloomberg Línea — Betterfly, the Chilean insurtech and flexible benefits startup that expanded into Brazil last year, has acquired Brazilian startup SeuVale, which has a similar business model to that of the Chilean unicorn.

The value of the deal was not disclosed.

Through its acquisitions since late 2021, Betterfly, which was created by brothers Eduardo and Cristobal della Maggiora, has seen almost 20-fold growth, acquiring five Chilean, a Brazilian and a Spanish company.

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Acquiring startups has become a common practice among Latin American unicorns. According to a study entitled Panorama of Venture Capital in Latin America, by Glisco Partners and Endeavor, 83% of the region’s unicorns have made at least one acquisition since 2018, focused on offering comprehensive services to their clients, acquiring technological innovation and expanding internationally.

With the purchase of SeuVale, the Chilean company seeks to consolidate itself as a benefits software provider through a modular software-as-a-service) platform. This is the company’s second acquisition for this purpose, having acquired Spanish company Flexoh in July, a deal that marked its entry into Europe.

SeuVale is a player in the flexible benefits market. The Brazilian startup, founded in 2019, seeks to complement workers’ remunerations with a virtual card loaded with resources that employees themselves can use according to their needs, in thousands of stores and institutions.

Eduardo della Maggiora, founder and CEO of Betterfly, said in a statement that human resources departments face the problem that employees do not use part of the fixed benefits given to them, “so flexible benefits are presented as the perfect solution that allows the beneficiary to manage them according to their needs and tastes.”

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For their part, the founders of SeuVale, César Costa (CEO) and Paulo Fonseca (CTO), said that they found in Betterfly a complement to their product.

During the pandemic, the two developed the platform based on a social project that distributed emergency aid granted by the Brazilian government and served 800,000 people.