Skip to content

Software in Brazil Inspiring Startups Analysis

Inspiring Startups

The Brazilian software industry value chain is being significantly influenced and reshaped by the emergence and growth of inspiring startups. These new entrants and innovative companies are introducing new business models, leveraging cutting-edge technologies, and challenging established norms across the value chain steps, from Research & Development to Support & Maintenance. Their impact is particularly notable in driving digitalization, specializing in vertical markets, and pushing the adoption of advanced technologies like AI and SaaS.

Several startups and types of startups stand out as inspiring changes and new business models in the Brazilian software value chain:

  • Solinftec: This Brazilian-founded agtech company is inspiring change by revolutionizing farm management through a SaaS platform powered by Artificial Intelligence (AI) and the introduction of agricultural robots like Solix. [10], [15], [16], [21] Their approach integrates sensors, computers, and displays in farm equipment to provide real-time data, enabling optimal scheduling, planning, and decision-making for farmers. [15] This disrupts traditional, less data-driven farm management practices and introduces automation and AI into the agricultural value chain. Solinftec's business model leverages technology to improve operational efficiency, reduce input use, and lower environmental impact, addressing critical challenges in agribusiness. [10], [21] Their success in managing millions of acres across Latin America and the US, and securing significant investment, highlights the potential of specialized, tech-driven solutions in vertical markets. [15], [16]

  • StoneCo: While now a larger financial technology company, StoneCo's origin and continued strategy of combining financial services and software solutions, primarily for Small and Medium-sized Businesses (SMBs) in Brazil, have been highly inspiring and disruptive in the fintech and software value chains. [2], [17], [18] StoneCo leverages technology to simplify and streamline financial transactions and offers software solutions for managing inventory, sales, and customer relationships. [17] This integrated approach provides a more comprehensive value proposition to SMBs, going beyond simple payment processing. By integrating financial services with POS and ERP solutions in strategic verticals, StoneCo creates cross-sell opportunities and leverages network effects to generate more value. [2] Their focus on empowering SMBs through technology has significantly impacted financial access and digital transformation for these businesses in Brazil. [2], [19]

  • RD Station: As a leader in marketing automation software (SaaS) in Brazil, RD Station has been a significant inspiration for the growth of the SaaS model in the country. [4], [20] Its success demonstrated the viability and scalability of a subscription-based software business model in the Brazilian market. Although acquired by TOTVS, RD Station's journey influenced the Development/Production of SaaS products, transformed Distribution through cloud-based delivery, and promoted the adoption of recurring revenue models. [M&A Movements Analysis], [4] Its acquisition by a major player like TOTVS also highlighted the strategic importance of successful startups in consolidating market segments and expanding portfolios. [M&A Movements Analysis]

  • Protega: This cybersecurity firm, acquired by Stefanini, represents the growing importance and specialization within the critical cybersecurity segment of the software value chain. [M&A Movements Analysis], [26], [27] As cyber threats escalate, companies like Protega, focusing on developing and providing robust cybersecurity software and services, are essential. [26] Protega's specialization, particularly in areas like managed cybersecurity services (MSSP), offers new and inspiring business models within the Support & Maintenance step of the value chain, providing dedicated expertise to help companies navigate the complex security landscape. [M&A Movements Analysis]

  • Vertical-Specific Startups: Beyond these examples, numerous startups are driving change by focusing on specific vertical markets. Startups in Fintech (like those supported by Cubo Itaú and receiving VC funding), Agribusiness (such as those in the Cubo Agro hub and other agtechs like Kilimo, Instacrops, Agrosmart, Pink Farms, Puna Bio, Inocas, Ruuts, Morfo, Arado, and Gaivota), and Healthcare (like Pixeon and those in Cubo Itaú's healthcare hub) are developing tailored software solutions that address the unique needs and challenges of these industries. [Value Chain Analysis], [11], [14], [35], [37] Their deep industry focus and often agile development approaches enable them to innovate and offer solutions that can be more relevant and effective than generic software.

  • AI-Focused Startups: A growing number of startups are emerging with a core focus on Artificial Intelligence and Machine Learning. These companies are developing AI-powered software and integrating AI into various applications, pushing the boundaries of what software can do. [Strategic Priorities and Investments Analysis] Examples like Advolve (AI-driven digital ads) and Gaivota (AI-driven Industry Cloud for agriculture) illustrate how AI is being applied to create new functionalities and business models in different sectors. [35]

  • Innovation Hubs and Ecosystems: Innovation hubs like Cubo Itaú play a crucial role in fostering these inspiring startups. By providing a collaborative environment and connecting startups with corporations and investors, these hubs accelerate the development and adoption of new technologies and business models across various segments of the value chain, including ESG and smart mobility. [Value Chain Analysis], [1], [11]

The collective impact of these inspiring startups and the trends they represent is a move towards a more dynamic, specialized, and technologically advanced Brazilian software industry. They are demonstrating the potential of new business models, particularly SaaS and integrated solutions, and highlighting the opportunities within specific vertical markets and emerging technologies like AI and cybersecurity.

Potential Impact of the Startups

Startup/Type of Startup Value Chain Step(s) Primarily Impacted Potential Impact on the Value Chain Analysis
Solinftec (Agtech, AI, Robots) R&D, Development/Production, Distribution, Implementation/Deployment R&D: Drives innovation in AI and robotics for agriculture. Development/Production: Creates specialized SaaS platform and integrates hardware (robots) with software. Distribution: Potentially develops direct channels to farms. Implementation/Deployment: Involves deployment and integration of robots and software on farms. Introduces new technology-driven business models in agribusiness.
StoneCo (Fintech, SMB Software) Development/Production, Distribution, Commercial Relationships Development/Production: Develops integrated financial services and business software. Distribution: Utilizes direct sales channels to reach SMBs. Commercial Relationships: Creates integrated offerings that enhance customer value and loyalty. Disrupts traditional financial service and software provision to SMBs.
RD Station (Marketing Automation SaaS) Development/Production, Distribution, Business Models, Commercial Relationships Development/Production: Exemplified successful SaaS product development. Distribution: Leveraged cloud channels for widespread reach. Business Models: Popularized the recurring revenue subscription model. Influenced the shift to SaaS in the Brazilian market.
Protega (Cybersecurity) Development/Production, Support & Maintenance Development/Production: Specializes in developing cybersecurity software. Support & Maintenance: Strengthens and introduces new models for managed security services (MSSP). Addresses a critical and growing need in the market.
Vertical-Specific Startups R&D, Development/Production, Distribution, Implementation/Deployment R&D/Development/Production: Develops tailored solutions for specific industries (Fintech, Agro, Healthcare). Distribution/Implementation/Deployment: Requires specialized knowledge and channels for vertical markets. Increases innovation and competition within niches.
AI-Focused Startups R&D, Development/Production, Implementation/Deployment, Support & Maintenance R&D/Development/Production: Drives innovation and integration of AI/ML into software. Implementation/Deployment/Support & Maintenance: Introduces AI-powered functionalities and efficiencies across the chain. Creates new software capabilities and business models.
Xvidio Technologies (Video Streaming) Development/Production, Distribution, Business Models Potentially revolutionizes the video streaming space and inspires entrepreneurship. Impacts Development/Production of streaming platforms and Distribution models for content.
"Fábrica de Software" Providers Development/Production, Commercial Relationships Offers a potentially more agile and cost-effective approach to software development outsourcing. Impacts the Development/Production step and commercial engagement models for development services.

References

  • ABES – Associação Brasileira das Empresas de Software. “Dados do Setor 2024.” https://www.abes.org.br/dados-do-setor
  • AgroPages-Farm production management firm Solinftec receives $60 million investment. https://www.agropages.com/News/Detail---51977.html
  • BNamericas. "The issues at stake for Brazil's software industry in 2024". https://www.bnamericas.com/en/features/the-issues-at-stake-for-brazils-software-industry-in-2024
  • Brazil ICT Market Size, Share, Growth and Forecast 2033 - IMARC Group. https://www.imarcgroup.com/brazil-ict-market
  • Brazil Venture Capital: Top Startups and VC Funds. https://www.latinrepublic.com/en/articles/brazil-venture-capital
  • Contxto | Substack. "The Digital Revolution in Latin America: Fintech and Brazil Spearheading the Transformation". https://contxto.substack.com/p/the-digital-revolution-in-latin-america
  • Co-creating Solutions for a Better Future - About - Stefanini. https://stefanini.com/en/about-us/co-creating-solutions-for-a-better-future
  • Corteva and Cubo Itaú announce partnership in search of solutions to agribusiness challenges - Cultivar Magazine. https://www.cultivar.inf.br/noticias/corteva-e-cubo-itau-anunciam-parceria-em-busca-de-solucoes-aos-desafios-do-agronegocio
  • Corporate Venture Capital in Brasil 2024: um panorama. https://elpgroup.com.br/conteudos/corporate-venture-capital-in-brasil-2024-um-panorama/
  • Cubo Itaú announces the creation of Cubo Agro in partnership with Corteva Agriscience, São Martinho and Itaú BBA - Cultivar Magazine. https://www.cultivar.inf.br/noticias/cubo-itau-anuncia-a-criacao-do-cubo-agro-em-parceria-com-corteva-agriscience-sao-martinho-e-itau-bba
  • Eulerpool. "StoneCo Stock | STNE | KYG851581069 | A2N7XN". https://eulerpool.com/stock/STNE
  • Fundo Vale and Ago Social will empower 30 startups to generate social and environmental impact businesses. https://fv.org.br/fundo-vale-e-ago-social-vao-potencializar-30-startups-para-gerar-negocios-de-impacto-socioambiental/
  • Home - Swissnex in Brazil. https://www.swissnex.org/brazil/
  • Home - Swissnex in Brazil. https://www.swissnex.org/brazil/about/
  • Itaú Unibanco: Advancing Governance, Climate Action, and Sustainable Finance - UNEP FI. https://www.unepfi.org/wordpress/wp-content/uploads/2024/05/Itau-Unibanco-Driving-Governance-Climate-Action-and-Sustainable-Finance.pdf
  • KanBo. "Empowering SMEs: How StoneCo is Transforming Payment Solutions and Driving Financial Innovation". https://kanbo.com/blog/empowering-smes-how-stoneco-is-transforming-payment-solutions-and-driving-financial-innovation/
  • Latin America Startup Funding Fell Sequentially In Q1. https://news.crunchbase.com/venture/latin-america-startup-funding-q1-2025-brazil-mexico/
  • Lightsmith leads $60 million investment round in Solinftec, a leading data-driven precision agriculture company. https://www.lightsmithgroup.com/solinftec-announces-60-million-growth-investment-round/
  • Maior aquisição histórica da TOTVS, RD Station vem liderar a dimensão de Business Performance - ABES. https://institucional.abes.org.br/noticias/maior-aquisicao-historica-da-totvs-rd-station-vem-liderar-a-dimensao-de-business-performance
  • Porter's Six Forces Analysis (Internal Document)
  • Protega Pharmaceuticals collaborates with Wellgistics Health to support pharmacist education and increase patient access to the first and only FDA-approved abuse-deterrent immediate-release opioid, ROXYBOND™ - PR Newswire. https://www.prnewswire.com/newsreleases/protega-pharmaceuticals-collaborates-with-wellgistics-health-to-support-pharmacist-education-and-increase-patient-access-to-the-first-and-only-fda-approved-abuse-deterrent-immediate-release-opioid-roxybond-302076797.html
  • REORGANIZATION OF GLOBAL VALUE CHAINS: ARE THERE OPPORTUNITIES FOR BRAZIL? - Scioteca. https://scioteca.cultura.gov.br/bitstream/handle/1854/UFMG/17701/--%20CAP%202.pdf?sequence=1
  • Sarona Asset Management. "Values Report 2023". https://saronaassetmanagement.com/wp-content/uploads/Sarona_ValuesReport2023_Web.pdf
  • SEC.gov. "Final Prospectus - SEC.gov". https://www.sec.gov/Archives/edgar/data/1676513/000119312518306626/d622393d424b4.htm
  • Solinftec Unveils Solix Sprayer Robot for Precise Pesticide Application. https://www.precisionag.com/crop-inputs/solinftec-unveils-solix-sprayer-robot-for-precise-pesticide-application/
  • Strategic Priorities and Investments Analysis (Internal Document)
  • Sustainability Report 2023 - Solinftec. https://www.solinftec.com/wp-content/uploads/2024/04/Solinftec-Sustainability-Report-2023-vf.pdf
  • TOTVS - 2º ITR 2021_Inglês. https://ri.totvs.com/wp-content/uploads/2021/08/TOTVS_2Q21_ENG.pdf
  • Top 50 Software Startup Investors in Brazil in April 2025. https://www.startupblink.com/investors/software/brazil
  • Valor Capital Group | Driving Local Innovation. https://www.valorcapital.com/companies
  • Value Chain Analysis (Internal Document)
  • xvidio technologies startup brasil 2025 - ACV – Ibict. https://www.ibict.br/cionline/index.php/acv-ibict/article/download/1799/1732/