$18.5 million in fintech funding

Hola amig@s fintech,

Today, Mexico is holding its largest elections in history, with over 20,000 public positions up for grabs and more than 98 million people eligible to vote. This is a pivotal moment for the country. We urge all our readers in Mexico, and all Mexicans abroad, to exercise their democratic right and go out to vote. Our participation shapes the future of our nation.

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 weekend. Até a próxima!

• Lorena

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📊 Stat of the Week

The combined value of the world's 500 most valuable banking brands reached US$1.44 trillion in 2024. In Latin America, Itaú Unibanco stands out as the most valuable financial brand, with a valuation of US$8.33 billion. (Source)

📖  Read of the Week

The "Fintech Radar Colombia 2024" by Finnovista reports that Colombia now has 394 local fintech companies, marking a 6.8% growth over the past year. Additionally, 169 foreign startups are operating in the country, bringing the total to over 560 fintech companies. With artificial intelligence being the most implemented technology, this growth highlights Colombia's expanding fintech ecosystem, driving innovation and financial inclusion in Latin America.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🌎 Félix Pago, the San Francisco-based WhatsApp remittances platform, raised $15.5 millions in a Series A round led by Castle island Ventures to expand its operations in LatAm and the US. 

🇨🇴 El Dorado, the Colombian crypto wallet, raised $3 millions in a Seed round led by Coinbase Ventures and Multicoin Capital. 

💰 Venture funds 

🇲🇽 GAIN, the Mexican angel investors group, is developing a $5 million fund for LatAm tech and innovation entrepreneurs.

☯️ Exits

🤝 M&A - Fintech

🌎 Koywe, the Chilean payments platform, announced the acquisition of Facto, the US-based electronic invoicing platform. This move aligns with the launch of a new digital billing standard by the Federal Reserve, where Facto has been a key player. No further details of the transaction were disclosed.

🏦 M&A - Bank and FinServ

🇲🇽 BanFeliz, the Mexican financial services provider, announced the acquisition of Banco Forjadores, the Mexican microfinance institution, following CNBV approval. The acquisition aims to expand BanFeliz's reach to 285 service centers, targeting over 48 million unbanked Mexicans and informal SMEs. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇨🇱 X-Company, the Chilean compliance solutions developer, announced the launch of Compliance Xpert, an AI-based platform designed to help companies and financial institutions comply with Chile's new economic crimes Law. The tool aims to enhance compliance departments by preventing money laundering and terrorism financing.

🇲🇽 Kueski, the Mexican BNPL platform, announced the expansion of its in-store payment options in Mexico, integrating QR code technology to accommodate the country’s cash-reliant market. This move follows their collaboration with Amazon to offer BNPL services on its Mexican marketplace.

🇨🇱 Trii, the Colombian investment app for retail investors, announced it is allowing users’ investments in mutual funds and major global stocks from as little as $4,000. The platform offers a fully digital experience with over 100 investment options and free financial education content on social media.

🇧🇷 Nubank announced the launch of a support service for transactions in Bitcoin, Ethereum, and Solana. The company reported a 1,500% increase in crypto transaction volume over the past year and collaborates with Chainalysis to enhance security.

🇦🇷 Belo, the Argentinean digital wallet platform for freelancers and remote workers, announced the launch of ACH transfer support in USD directly to user wallets. This new feature simplifies payments from the US, reducing intermediaries and offering a competitive 2% transaction fee. 

🇦🇷 Mercado Pago announced it has reached an agreement with banks to enable QR code payments via credit cards in Argentina. The initiative, set to be fully operational within two months to start the launch.

📜 Policy

🌎 The financial regulatory agency of Argentina (CNV) met with its counterpart in El Salvador (CNAD) to explore collaboration between authorities to promote Bitcoin regulation and adoption.

📰 Other News 

🇪🇨 Lucas Medola was named CFO at Kushki.

🇨🇱 Fraccional, the Chilean real estate investment platform, allows people to enter the real estate market with as little as $109. Users can buy small shares of properties, such as apartments or commercial spaces, and become partners in real estate projects.

🇲🇽 Alibaba Cloud announced its plans to open its first cloud region in Mexico. This expansion aims to meet the growing demand for AI and cloud services across various industries. The new region will enhance Alibaba Cloud's global infrastructure and support digital talent development through partnerships with universities and local entities.

🇦🇷 Argentine crypto leaders, are spearheading "Crecimiento," a movement to create a "Blockchain Valley" in Buenos Aires. Supported by advisors to President Javier Milei, the initiative aims to attract millions on-chain, expand Argentina's tech ecosystem, and establish a stable regulatory environment. 

🌎 Ripio, the crypto platform, reported that Brazilian companies are now using cryptocurrency to pay Chinese suppliers. This trend is driven by the benefits of speed and cost-efficiency compared to traditional banking methods.

📚 Deeper Reads

Payment operating models.

Tricolor’s plan to serve Hispanics, an emerging economic force.

Leveraging new technologies for operational excellence.

Fintechs in LatAm: saturation in Brazil and opportunities in Mexico, Argentina, Colombia, Chile and Peru. (ES)

The way for 'traditional' banking to stop being so. (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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