Morgan Stanley Expansion Capital Makes $20 Million Investment in NovoPayment

Rhea-AI Summary

Morgan Stanley Expansion Capital has announced a $20 million investment in NovoPayment, a financial and payment infrastructure service provider. NovoPayment specializes in digital banking, payments, and card solutions through its vertical-focused SaaS platform. The company serves 15 markets across Latin America, the Caribbean, and the United States, offering solutions including digital wallets, instant account issuance, virtual cards, RTP, cross-border transfers, digital lending, and cash management. The funding will support NovoPayment's scaling efforts and expansion of commercial partnerships.

Positive

• Secured $20 million investment from Morgan Stanley Expansion Capital
• Established presence in 15 markets across Latin America, Caribbean, and US
• Offers comprehensive suite of financial solutions through SaaS platform

Negative

• None.

Insights

Financial Analyst

The $20 million investment from Morgan Stanley Expansion Capital into NovoPayment represents a strategic move in the fintech infrastructure space, particularly targeting Latin American markets. The investment validates NovoPayment's business model and market position in the banking-as-a-service sector. Key value drivers include:

• NovoPayment's full-stack platform serving 15 markets across LatAm, Caribbean and US
• Focus on high-growth embedded finance solutions including digital wallets, instant issuance and cross-border transfers
• Strong positioning to capitalize on LatAm's digital banking transformation

For Morgan Stanley, this investment aligns with the growing trend of traditional financial institutions backing fintech infrastructure players to participate in the digital transformation of banking services. The deal should provide Morgan Stanley with strategic insights into LatAm's fintech ecosystem while offering potential synergies with their existing financial services operations.

Funding to help accelerate product and commercial growth and strengthen position in the banking and payment vertical SaaS market

NEW YORK--(BUSINESS WIRE)-- Investment funds managed by Morgan Stanley Expansion Capital announced today an investment of $20 million in NovoPayment, a leading financial and payment infrastructure service provider specializing in delivering digital banking, payments and card solutions.

The funding is expected to support NovoPayment’s continued scaling and expansion of commercial partnerships.

Founded with the mission to redefine financial infrastructure, NovoPayment is a vertical-focused SaaS that enables banks, financial institutions, neo-banks, digital merchants, and fintech’s to offer intuitive digital financial and payment services, improving customer experiences and operational margins. NovoPayment’s innovative business and delivery model combines easy-to-integrate solutions with robust, scalable, secure and compliant infrastructure, filling market gaps and driving compelling digital initiatives. NovoPayment’s flagship platform offers a comprehensive suite of solutions ranging from digital wallets, instant issuance of deposit accounts and virtual cards to RTP, cross-border transfers, digital lending and cash management. NovoPayment serves 15 markets across Latin America, the Caribbean and the United States.

“We are thrilled to receive this investment from Morgan Stanley Expansion Capital to support our continued innovation and service expansion to grow our customer base, further amplifying our positive impact in the markets in which we operate,” said Anabel Perez, CEO of NovoPayment. “As the financial services landscape continues to evolve, we believe NovoPayment is well-positioned to compete in the embedded finance market by reducing friction and driving efficiency.”

“NovoPayment’s robust technology platform has positioned the company as a leader in the Latin America market,” said Pete Chung, Managing Director and Head of Morgan Stanley Expansion Capital. “The company’s mission-critical infrastructure enables the modernization of marquee banks and financial institutions in the region through a comprehensive, full-stack platform.”

“We are very excited to support Anabel and her team of operators, who bring deep industry and local market expertise, as they continue to grow and deliver value to customers,” added Nick Nocito, Executive Director at Morgan Stanley Expansion Capital. “We believe it is clear in the market that Anabel and NovoPayment are thought leaders in this space.”

About NovoPayment
NovoPayment, a category leader in banking and payment vertical (SaaS) platforms, enables digital financial and transactional services to support various use cases. The company's bank-grade solutions use APIs and other flexible delivery models to help banks, financial institutions, merchants, networks, marketplaces, neobanks, and other financial service providers to leverage their existing infrastructure to generate new deposits, transaction streams, and customer experiences. NovoPayment has previously secured funding from investors including IDCV, Fuel Venture Capital, IDB, Visa and Endeavor Catalyst. For more information, visit novopayment.com and developer.novopayment.com.

About Morgan Stanley Expansion Capital
Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets growth equity and credit investments within technology, healthcare, consumer, digital media and other high-growth sectors. For over three decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 200 companies, leveraging the global brand and network of Morgan Stanley.

Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241111185314/en/

Media Relations Contacts:

Morgan Stanley: Alyson Barnes

alyson.barnes@morganstanley.com

Source: Morgan Stanley Expansion Capital

FAQ

How much did Morgan Stanley Expansion Capital invest in NovoPayment?

Morgan Stanley Expansion Capital invested $20 million in NovoPayment to support the company's scaling efforts and expansion of commercial partnerships.

What markets does NovoPayment currently serve?

NovoPayment serves 15 markets across Latin America, the Caribbean, and the United States.

What services does NovoPayment's platform offer?

NovoPayment's platform offers digital wallets, instant issuance of deposit accounts, virtual cards, RTP, cross-border transfers, digital lending, and cash management solutions.

What is the purpose of Morgan Stanley's (MS) investment in NovoPayment?

The investment aims to accelerate NovoPayment's product and commercial growth and strengthen its position in the banking and payment vertical SaaS market.