$24.2 million in fintech funding (equity and debt)

Hola amig@s fintech,

Last week, I was so focused on Mexico’s elections that I didn’t mention June’s arrival! June is a month of vibrant, respectful, and empowering pride celebrations. It’s important to remember and protect the hard-won freedoms to live our lives authentically with whomever we choose. So, with no more words needed, just a heartfelt message: love is love. Happy Pride Month!

💛 Until next weekend. Até a próxima!

• Lorena

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📊 Stat of the Week

Latin America's tech unicorns face new challenges amidst economic slowdowns and higher interest rates. Kavak (Mexico) leads with a market value of $8.7 billion, followed by Rappi (Colombia) at $5.25 billion, and QuintoAndar (Brazil) at $5.1 billion. Despite difficulties, resilient companies continue to grow, focusing on sustainable business models and leveraging AI for efficiency. (Source)

📖  Read of the Week

The study “Financial culture of Ticos in the digital age” by the Cámara de Tecnologías de Información y Comunicación (CAMTIC) reveals that only 19% of Costa Ricans received financial education during their upbringing. However, newer generations are more exposed to this training, promising to improve the country's financial culture. This finding highlights the need to strengthen financial education to improve personal finance management and promote the use of fintech solutions in the region.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇧🇷 Kanastra, the Brazilian tech back office company for structured funds, raised $20.7 millions in a Series A led by Kaszek Ventures, with the participation of Atlântico, Valor Capital, Quona Capital, QED Investors and Actyus. 

🌎 Prósperos, the California-based financial platform for Latinos and their families, raised $3 millions in a Seed round with investments from FEBE Ventures, BAT VC, Tekton Ventures, and Courtyard Ventures.

🇧🇷 Consignei, the Brazilian payroll loans startup, raised $567,000 from Bertha Capital, which will be used for its expansion in the Western Amazon area of the country. 

☯️ Exits

🤝 M&A - Fintech

🇧🇷 PayRetailers, the Spain-based cross-border transactions platform, announced the acquisition of Transfeera, the Brazilian payment processing and bank data validation platform. The acquisition, pending regulatory approval, aims to bolster PayRetailers' presence in Brazil. No further details of the transaction were disclosed.

🇧🇷 Banco Inter, the Brazilian digital bank, announced the acquisition of Granito, the payment solution platform. The move aims to empower SMEs. No further details of the transaction were disclosed.

🌎Koywe, the Chilean paytech, announced the acquisition of Facto, the Chilean standardized payment and invoicing solutions platform, to introduce a new invoicing standard in the US. Leveraging Facto's founder expertise, Koywe aims to transform cross-border payments with crypto and streamline SMBs' online sales tech stack. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇧🇷 Pefisa, the financial arm of Pernambucanas, the Brazilian retail chain, announced it is expanding its store-in-store model by opening 17 new units within Pernambucanas locations. This expansion follows their initial store-in-store locations in São Paulo and Rio de Janeiro, offering a range of financial solutions including loans, insurance quotes, and digital banking services.

🇦🇷 Paxos, the US-based blockchain infrastructure, announced the launch of a new stablecoin, Lift Dollar (USDL), which functions as a "yield-bearing account" on Ethereum. Unlike other stablecoins, USDL offers daily returns to holders through smart contracts. Initial partners in Argentina include Ripio, Buenbit, Manteca, and Plus Crypto, who will integrate USDL into their product offerings.

🌎 ProntoPaga, the Chilean payment solutions platform for businesses, announced the expansion of its Pay4U platform to five LatAm countries: Chile, Peru, Ecuador, Brazil, and Mexico. This tool aims to facilitate efficient and secure payments to suppliers and collaborators.

🇨🇴 Nuvei, the Canada-based payments provider, and Visa announced a partnership to offer Visa Direct in Colombia, making it the first provider to do so in the country. This service enables near real-time fund delivery using card credentials, benefiting Colombian merchants with instant payout capabilities. 

📜 Policy

🇧🇷 The Central Bank of Brazil, through its Director of Regulation, stated that crypto regulations will be ready by 2025. The financial authority will release a new public consultation in September 2024.

🌎 The Central Reserve Bank of Peru and the NPCI International Payments Limited from India partnered to deploy a UPI-like real-time payments system in the Andean country. This makes Peru the first South American country to adopt the Unified Payment Interface technology. 

📰 Other News 

🇧🇷 Claudia Bortoletto was named to CEO at Ebury Brazil.

🇧🇷 Natália Alexandria was named Head of Commercial at Trademaster.

🇧🇷 Open Finance in Brazil reached 28 million consumers in 2023, representing 15% of the population using banking services. The initiative saw investments totaling $18 million in 2023, a 53% increase from the previous year, mainly directed towards technological infrastructure and cybersecurity. 

🇧🇷 Somos Young, a Brazilian edtech company, secured an investment of up to $12 million from the neobank BS2. This funding will support its business plan, including acquisitions and strategic partnerships.

🌎 The 'United with Crypto' alliance surpassed one million followers. This coalition, consisting of various crypto advocacy groups and individuals, aims to promote cryptocurrency awareness and education globally. The milestone highlights growing interest and support for digital currencies, showcasing the alliance's influence in fostering a more informed and inclusive crypto community. 

📚 Deeper Reads

Banks slowly preparing for AI, open banking

Manufacturing startups in series? The 'venture studio' business that LatAm can take advantage of (ES) 

Digital payments: factors that impact their adoption (ES)

Revving up for Revolut Mexico

📣 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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