On September 5th, the American private equity and venture capital firm announced that it has entered an agreement to invest approximately $100 million dollars in the Brazilian telecommunications company Aloo Telecom by 2021.
As a consequence of the deal, Cartesian Capital Group (CCG) now owns a minor stake in Aloo. The exact percentage was not disclosed. With this move, the organization ceased to be a limited company and became a corporation.
The law firm TozziniFreire Advogados assisted Aloo Telecom, counseling it on the legal matters surrounding the deal.
Aloo currently operates in 14 states of Brazil, but it aims to use these resources to expand and reach the entire national territory. Apart from the capital gathered from CCG, Aloo has also infused its own money to pay for the expansion and it aims to invest up to 340 million reais by 2019.
The company projects a revenue of 100 million reais for 2018 and expects to maintain an annual growth of 40% from 2018 to 2021.
About Aloo Telecom:
It provides fiber optic voice, cloud computing, data and capacity services, including submarine cables integrated to its network in Fortaleza, a city in the north east of Brazil. Two Brazilian partners, Felipe Cansanção and Sérgio Brito, own most of the shares. The board of directors now has seven seats. Four are reserved for the founding partners of Aloo and CCG, while the holders of the other three seats are yet to be announced.
About Cartesian Capital Group:
Established in 2006, the American private equity and venture capital firm is specialized in investments in emerging markets. The investments of the firm range from $25 million to $125 million dollars. It has its headquarters in New York, with offices in South America, Europe and Asia.