It has been a big week for Brazil’s startup scene in terms of business deals. Now, one more investment announcement has been squeezed in, and it’s a biggie. Riverwood Capital has announced plans to invest $50 million (about US$22 million) in Pixeon Medical Systems, a creator of healthcare software.
The capital will be injected in parts, the first R$30 million coming now, and the remaining R$20 million over the next three years. The funds will be used to consolidate Pixeon’s market position in Brazil as well as to strengthen and expand its reach throughout other Latin American locales.
This isn’t Pixeon’s first time at the investment rodeo. The company has also received two capital injections from Intel Capital, which holds 23% of the company.
Pixeon works with upwards of 1,200 clients across Brazil, Argentina and Chile. It builds management software for diagnostic centers and laboratories, addressing the imaging and workflow needs of healthcare providers and clinics.
Headquartered in Florianópolis, Santa Catarina, Pixeon has set up business units in São Paulo, Minas Gerais, Pernambuco, Bahia, Ceará and Brasilia. It reports to have increased revenues by 40% over the past year.
Joaquim Lima, Managing Director at Riverwood Capital, spoke to Valor about the deal, explaining that it is part of the fund’s strategy of diversification in Latin America. Specific to Brazil, he added, “The Brazilian market has big companies leading specific segments. Especially those focused on offering cloud-computing services.” Other areas of concentration are SaaS and social media.
Currently, markets outside of Brazil represent just 5% of Pixeon’s revenues. With this latest investment from Riverwood, the company will look to strengthen its local presence but also to consolidate elsewhere. It is specifically eyeing Colombia, Mexico and Peru as new targets.
U.S.-based Riverwood Capital is becoming a pretty significant player the Latin American tech arena. Last December, it injected US$3 million into Argentine startup GoIntegro. And it’s a backer of Globant.