Cumbuca, a Y Combinator-backed startup with investors including Lightspeed, has launched to provide international firms with direct, fast-track access to Brazil’s regulated financial services market by serving as a proxy within its payments ecosystem.
Brazil is recognized as a global benchmark for innovation in financial services, driven by a forward-thinking Central Bank, the instant payments system Pix, and a well-established Open Finance framework. This environment has attracted international businesses, including technology leaders and payment providers, seeking to enter the market. However, market entry presents significant challenges beyond securing appropriate licenses, which can take several years. Firms must also navigate global diplomatic strains, such as the threat of US tariffs, which can increase exposure to potential regulatory changes. Many enterprises attempt to mitigate these risks and accelerate market entry by partnering with Open Finance-as-a-Service (OFaaS) providers. These providers offer pre-configured infrastructure that allows clients to access, share, and operationalize financial data, as well as initiate payments, without developing these capabilities from scratch. However, this model can introduce dependencies on the provider’s technical support, policies, and operating procedures, potentially constraining autonomy, delaying issue resolution, and impacting operational effectiveness.
Cumbuca aims to address these challenges by operating as the first proxy for Brazil’s regulated payments ecosystem that offers direct access to the Brazilian Central Bank. This model enables financial services firms to build their own infrastructure under Cumbuca’s payment initiation license. This approach is designed to improve operational control, allowing clients to better manage and optimize costs. Daniel Ruhman, co-founder and CEO of Cumbuca, stated, “There is immense opportunity for forward-thinking businesses here in Brazil, but they need to access the market. Right now, they have two choices: wait years for a license or surrender control to third-party providers. We’re offering a third way: our customers can build the business they want in Brazil, while we handle license compliance. We’re acting as a bridge between total control of their operations and regulatory peace of mind.”Cumbuca itself was an early participant in the Brazilian market, having been one of the first companies to apply for and obtain a payment initiation service provider (PISP) license in 2022 for a consumer-focused product. Founders Ruhman, Bruno Cury, and Pedro Castilho experienced firsthand the complexities of securing a license and the limitations of working with third-party providers. This experience, combined with insights into the needs of Brazilian consumers and businesses, led the team to pivot Cumbuca to its current proxy model. Ruhman noted, “We’ve been on both sides of the market, delivering services for consumers while wrestling with the challenges of establishing a financial services business. Our own frustrations with the status quo have led us to pivot Cumbuca, so that we can help innovators remain compliant while they focus on building the infrastructure and products Brazilians are looking for.”The company has assembled a team of Open Finance and regulatory experts to ensure ongoing compliance and contribute to industry progression. The founders were among the youngest statutory directors in Brazil’s financial sector when they secured their initial license. Key additions to the team include Gustavo Lino, Head of Policy, Legal and Compliance, and a former President of INIT (the Brazilian Association of Payment Transaction Initiators and a board member of the Open Finance Association); Ana Luisa Monteiro, CFO and an expert in Brazil’s financial markets; and Nic Marcondes, Director of Open Finance, recognized as the architect of the no-redirect payment flow (JSR) and a significant contributor to Brazil’s Open Finance framework for over five years. Ruhman added, “If we’re to offer our customers regulatory peace of mind, we need not only to be aware of law changes, but be an active part of the community we’re helping to shape and evolve. We’re fortunate to have a forward-thinking Central Bank here in Brazil, and we’re building a team that will help Cumbuca’s clients thrive and the entire market become more accessible.”Mercedes Bent, Venture Partner at Lightspeed, commented on Cumbuca’s market position: “Brazil represents a significant opportunity for forward-thinking, global firms, but they need local partners to help enable their market presence. Cumbuca is ideally placed to meet that need: as our only investment in Brazil, it has deep sector expertise, a team that understands exactly what their customers are going through, and a unique position not just as a start-up, but as a source of Open Finance knowledge.” Cumbuca has also launched on Product Hunt.
