$80 million in fintech funding (equity and debt)

Hola amig@s fintech,

As we wrap up the last edition of TWIF Latam for 2023, we're thrilled to share that we've reached over 23k weekly readers! Throughout this year, we've witnessed tremendous interest in the content we bring to you. Elena, Daniela, and I are grateful to all of you and the entire TWIF team for your support, valuable suggestions, and comments that make us better. Our region tirelessly continues to innovate, grow, and foster great minds, ideas, and fintech enterprises. We expect many good fintech news in 2024!

Best wishes to the entire TWIF family, and… 

¡¡¡Felices Fiestas para nuestra querida Latinoamérica / 

Felizes Festas para a nossa querida América Latina /

Happy Holidays to our dear Latin America!!!

A quick announcement: we'll be taking a break during the holidays and will be back in the first week of January 2024.

Please find below this week's front page of Latam fintech news. If you're reading this on the web, we'd appreciate your support by sharing and subscribing.

☃️❤️ Until next year!

• Lorena

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📊 Stat of the Week

Banking in Mexico has been led by global giants, but innovation is usually driven by new companies. From 2017 to 2023, Mercado Pago, Nubank, Spin and baz have rapidly grown in Mexico. Mercado Pago alone has reached 10 million users. (Source) 

📖 Read of the Week

The SMEs Radar by BFA Global analyzes institutions interacting with SMEs, identifying opportunities for coordination among financial, e-commerce, and government (and non-government) entities. The goal is to strengthen the ecosystem, promoting resilience and growth for SMEs in Mexico. 

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇲🇽 Kapital, the Mexican startup providing financial visibility to SMEs through data and AI, raised $40 million in a Series B round and $125 million in debt financing. The Series B was led by Tribe Capital and joined by Cervin Ventures, Tru Arrow, MS&AD Ventures, and Alumni Ventures. 

🇲🇽 Yalo, the Mexican AI company, raised $20 million in a Series C round extension from Glisco Partners. 

🇧🇷 Mercado de Recebíveis, the Brazilian POS financial experience startup, raised a Seed investment round led by Urca Angels which made the company to be valued at $14 million. No further details were disclosed.

🇧🇷 InvestPlay, the Brazilian open finance and data company, received a $670,000 investment from BRQ, Osten Moove, and the Darwin Startups accelerator. No further details were disclosed.

🇨🇴 Supra, the Colombian company for SMEs’ international payments, raised a round led by Citi, with the participation of Far Out Ventures and H20 Capital. No further details were disclosed.

☯️ Exits

🏦 M&A - Bank and FinServ

🌎 Visa announced the acquisition of a 51% stake in Prosa, the Mexican payment processor, maintaining its independent operation with existing leadership. The deal, pending regulatory approval, positions Visa to expand Prosa's product offerings with digital solutions while leveraging its global network and technological capabilities. No further details of the transaction were disclosed.

🇧🇷 Bradesco announced the acquisition of TDS, the Brazilian technology provider for correspondent banking platforms. Bradesco aims to leverage this acquisition to expand its presence through Bradesco Expresso, enhancing B2B2C relationships. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇵🇪 Fapro, the Chilean fintech and tax information services platform, announced its entry to Peru, aiming to connect the industry with strategic data, offering 360 indicators for secure decision-making, process optimization, and intelligent financial operations.

🇧🇷 Saks, the Brazilian digital insurance broker, announced the first crypto pension fund from Hashdex and SulAmérica, marking Hashdex's debut retail-focused pension product. 

🏦 Financial Services & Banking

🌎 Banco de la República, Colombia's Central Bank, and ACI Worldwide, the US-based banking solutions platform, announced a partnership to propel real-time payments, leveraging ACI's Digital Central Infrastructure to establish a collaborative and nationwide interoperable real-time payment ecosystem starting in 2025.

🇧🇷 Creditú, the Chilean home financing platform, announced its expansion into Brazil, capitalizing on the country's favorable investment environment.

📜 Policy

🇧🇷 Conta Simples, the Brazilian expense management platform, was approved by the Brazilian Central Bank to offer corporate credit as direct credit society. Vórtx, the infrastructure company for financial markets, also received the approval of the Brazilian regulator to operate as a DCS. 

🇨🇱 The Financial Market Commission (CMF), the Chilean financial regulatory agency, introduced a proposal, available for public consultation until December 29, to finalize regulations for fintech service providers. This proposal covers accreditation of operational capacity for entities providing alternative transaction systems, financial instrument intermediation, order routing, and custody of financial instruments. 

🇲🇽 According to the Public Registry of Commerce of the Mexican Ministry of Commerce, Farmacias del Ahorro, the Mexican pharmaceutical stores chain, received authorization to acquire Tu Dinero Digital, the Mexican licensed electronic payment funds institution. 

🇲🇽 Grupo Financiero Banorte received authorization from the Mexican regulatory authority (CNBV) and the Central Bank to begin operations of Banco Bineo, its digital bank, which will launch in 2024. 

🇸🇻 The Volcano Bond, the Salvadorian bitcoin bond, was approved by the financial regulatory agency, the Digital Assets Commission of El Salvador, and is expected to launch in 2024. 

📰 Other News 

🇧🇷 OXXO, the Mexican convenience stores operated in Brazil by Grupo Nós, launched an advanced WhatsApp chatbot, reinforcing OXXO's presence in the Brazilian market.

🇨🇱 The General Secretary of the Presidency and the Ministry of Science, Technology, Knowledge and Innovation of Chile announced the release of a list of recommendations on the use of AI, to avoid discrimination and misuse of personal information.

🌎 Laboratoria, the bootcamp company for women in tech, announced a new initiative called Laboratoria+, which targets mid-career women seeking to acquire skills and professional networks to advance to roles of greater responsibility and influence.

📚 Deeper Reads

Open Banking, Mexico’s Pending Wave of Data-Driven Innovation

24 million SMEs in LATAM use at least one fintech solution

The 100 Most Innovative People in Latin America in 2023

Financial Transformation in Latin America: The Catalyzing Role of Artificial Intelligence

Brazil's Central Bank Bold Move into Cryptocurrency Regulation

How much weight do startups and fintechs have in the Colombian economy? (ES)

📣 Latam startup alum who have been impacted by layoffs and recruiters looking for top talent, check out the Startups Alumni and Layoffs Brasil databases.  

If you’re looking to hire from a group of 10,000+ smart, motivated fintech professionals, come pick up a Collective Pass and post a job here.  If you’re looking for your next adventure at one of the best fintech companies, check out the open roles here!

Made in Latam with ☃️❤️ by Elena, Daniela, and Lorena

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