Bloomberg Línea — After nearly two decades leading Google’s engineering team in Brazil, computer scientist Berthier Ribeiro-Neto has been appointed as the new CTO (Chief Technology Officer) of the Brazilian fintech UME. The startup, which has attracted investment from PayPal, has developed a platform that analyzes and offers credit to consumers of small and medium-sized retailers. The company was established in 2019 by his son, Berthier Ribeiro, partner Theo Ramalho, and computer scientist Marco Cristo, Ribeiro-Neto’s former Ph.D. student.
“When I made the decision to leave Google, I had planned to repair the fence and raise chickens on the small farm we own in the countryside,” Ribeiro-Neto stated in an interview with Bloomberg Línea, his first contact with the media since his departure from the tech giant. But ultimately, he knew he wouldn’t remain idle for long.
Ribeiro-Neto is regarded as a pivotal figure in Google’s expansion in Brazil and the advancement of the company’s search technologies. He and other colleagues from the Department of Computer Science at UFMG (Federal University of Minas Gerais) were also the cofounders of Akwan, a company that developed its own search engine and was acquired by the Silicon Valley powerhouse for an undisclosed amount in 2005.
The name Akwan is derived from the indigenous Tupi-Guarani word “acuã,” which translates to “quick.” Akwan was one of the few Brazilian-founded businesses to be acquired by a global tech giant. Another notable example is Instagram, founded by São Paulo native Mike Krieger and sold to Facebook in 2012 for US$1 billion.
Following the acquisition by Google, Ribeiro-Neto became the inaugural employee of the search giant in Brazil. He spent the subsequent 19 years spearheading the company’s engineering center in Belo Horizonte, which originated from Akwan’s operations. Under his guidance, the approximately 200 engineers working there today have developed technologies utilized in Google’s global search tool. The center is currently undergoing expansion and will open a new unit in São Paulo by 2026, potentially doubling the team’s size.
Return to Entrepreneurship
The computer scientist stated that he was one of the initial investors in his son’s startup and assisted the team in identifying a candidate to lead UME’s engineering department. Following his departure from the technology company in July, UME’s partners extended an invitation for a meeting, and the former Google engineering leader accepted the position, marking a return to his entrepreneurial roots.
One of the factors that influenced his decision, according to Ribeiro-Neto, was the evident advantage that UME’s technology offers to consumers and retailers in Brazil. “We serve a population with a significant demand for credit,” he said. “UME provides consumers with the option to purchase a more expensive product that they may not currently be able to afford. For retailers without their own credit options, this represents a potential loss of sale.”
Ribeiro-Neto’s appointment follows UME’s successful completion of a $15 million funding round in late August, led by PayPal with participation from Globo Ventures, the media group’s venture capital arm. Additionally, the company has secured investments from other venture capital funds, including NFX, Clocktower Ventures, FJ Labs, Big Bets, and Canary.
The engineering team, now under the direction of Ribeiro-Neto, has 15 members and is expected to grow to 20 by the end of the year. One of the technical challenges is preparing the platform to scale and make the technology infrastructure more robust to handle higher traffic volumes. The credit analysis system was developed by partners Marco Cristo and Márcio Palheta, both PhDs in computer science and former researchers at the Federal University of Amazonas.
At the university, the team concentrated on developing an academic framework for credit decision-making based on neural networks, which are systems designed to learn from data and make autonomous predictions. The project expanded, and the researchers developed a commercial prototype and began offering services to a retail company in Manaus.
His son, Berthier Ribeiro, an economics graduate, had taken a sabbatical after working for several years in investment banking at Méliuz and BTG Pactual. It was at this time that his father introduced him to Marco Cristo, and the idea of expanding the business with a credit analysis tool was born.
Helping Small Retailers
UME’s objective is to assist small and medium-sized retailers, who lack the capacity to operate their own credit systems like larger stores, and enable their customers to make installment purchases. Currently, over 2,000 retailers are connected to the platform, with approximately 400,000 users who have been granted credit approval.
In the previous fiscal year, the company provided loans amounting to approximately R$220 million, representing a twofold increase compared to the preceding year. It is anticipated that the amount of credit originated will reach R$ 500 million in the forthcoming fiscal year. The capital for financing is sourced from a R$100 million FIDC (Credit Rights Investment Fund) raised by the company.
Ribeiro-Neto stated that the company came to recognize over time that consumers were seeking diverse repayment options for loans. UME then leveraged its technology to develop products with flexible modalities, such as credit with weekly or biweekly payments.
“How does someone proceed if he has only a week to pay?” For instance, a consumer may borrow R$500. The interest rate is high due to the current Selic rate, but, over the course of a week, the amount is relatively small, Ribeiro-Neto explained. The company can therefore offset this cost through product sales or services, he added.
Another opportunity identified by the company is payment via Pix. Currently, consumers have the option of taking credit to make purchases at one of UME’s partner retailers. However, if they prefer to buy from other shops, they can pay via Pix, which provides flexibility and helps attract new retail partners.
A ‘Lighter’ Approach
After two decades at a big tech company, Ribeiro-Neto said that the chance to work at a startup again has brought him a sense of “lightness” since he can make decisions with more autonomy. He decided to leave Google following a moment of tragic loss.
In September 2023, Luiz André Barroso, who was Google’s VP of engineering at the time, passed away at 59. Barroso had been the one who introduced Akwan to Google founders Larry Page and Sergey Brin before the acquisition, and he and Ribeiro-Neto had become close friends. Ribeiro-Neto said the event made him think and made him wonder if it was time for a new challenge or if he should stay at the company until he decided to stop working. After an internal change, his boss switched roles, and that’s when Ribeiro-Neto decided it was time to move on.
The computer scientist remembered that in the early days at Google, Page and Brin made sure to interview every employee to make sure the company stayed true to its values. At UME, it’s the same thing; it’s the same culture. It’s the same story I heard at Akwan more than 25 years ago. It’s inspiring. There’s a small but very competent technical team, very well selected and eager to get things done.
