Brazilian FinTech Agibank reportedly may postpone a planned initial public offering (IPO) in the United States after Brazil’s social security system suspended one of the firm’s main businesses. The social security system, INSS, stopped the firm from making new payroll-deduction loans for retired workers in December, citing “serious irregularities,” Bloomberg reported Friday (Jan. 9). Agibank may need to put off its planned U.S. IPO until it clarifies the reason for the alleged irregularities and gets that suspension lifted, the report said, citing unnamed sources. Asked about this report by Bloomberg, Agibank reportedly said that it doesn’t comment on market speculation and that it will communicate any relevant deals to the market. In an INSS press release issued Dec. 3 and translated by Google, the INSS said it suspended payroll loan registrations from Agibank after a government audit found contracts registered without the express consent of the beneficiaries, as well as indications of irregularities in thousands of transactions. Agibank serves the consumer credit market in Brazil with a “hybrid model” that includes proprietary technology and physical locations, according to a company presentation. The company’s physical locations are paperless and cashless, as they focus on helping customers open accounts, accept new benefits, access cash via a secure ATM and receive in-person support, according to the presentation. Its portfolio includes payroll credit, personal credit and payroll-linked cards, per the presentation. When Agibank announced that it received an investment of 400 million Brazilian real (about $75 million) in December 2024, it said it was…
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