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Tuesday, August 15, 2023

Uruguayan fintech giant DLocal up for sale amid financial scandal

The fintech company is currently exploring a lot of options, including a potential sale.

• August 15, 2023
DLocal
DLocal(Credit: Business Wire)

Uruguayan fintech brand, DLocal, is currently up for sale after it was accused of falsifying its financial records and being on the verge of bankruptcy by Muddy Waters, an investment research company.

The fintech company is currently exploring a lot of options, including a potential sale.

The company, which provides payment services to businesses in emerging markets, is talking to potential buyers and working with a financial adviser, according to a Bloomberg report.

The company has received takeover interest but no final decision has been made and it could opt to remain independent.

Peoples Gazette earlier reported that DLocal, which supports local payment processing in 12 African countries and 37 emerging markets around the world, is “ likely a fraud,” according to a report by Muddy Waters.

The Investment research company found dodgy practices in the organisation’s transparency regarding client cash.

It also claimed that the company was faking data and spreading a series of lies on the source of funds for the insider option exercise.

Similarly, in late May, reports claimed that the Argentine government was investigating the Uruguayan payments company. The news led to a 17% plunge in the company shares.

DLocal has continually made efforts to join the Nigerian market and further expand its footprint in Africa.

Shares of the company rose 10% in late afternoon trading on the news. The company had a market value of about $3.73 billion as of Friday’s close.

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