$221.8 million in fintech funding (equity and debt)

Hola amig@s fintech,

I hope you’re finding some time to relax and enjoy your summer vacation. The great thing about TWIF is that you can catch up on the latest fintech news wherever you are!

As we head into the second half of the year, we’ve got exciting news! We’re bringing our events to major cities across LatAm, starting with a Fintech Happy Hour in São Paulo on July 16, in partnership with Ensemblex.

After Brazil, we’ll be in Bogotá, Mexico City, Santiago de Chile, and Buenos Aires. Interested in partnering with us and connecting with fintech leaders in this dynamic region? Reach out to us at ramon@thisweekinfintech.com or fill out this form!

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

Generation Z holds fewer credit cards compared to other generations. In the last quarter of last year, their average debt increased by 3.1%, reaching $16,283—the highest increase among all generations (Source).

📖  Read of the Week

The flagship report “IV Fintech Report in Latin America and the Caribbean”, by Finnovista and IDB, reveals significant growth in the fintech ecosystem in LatAm and the Caribbean, with a 340% increase in the number of startups since 2017. There are currently 3,069 fintechs in 26 countries. Brazil leads with 24% of the total, followed by Mexico, Colombia, Argentina, and Chile. The dominant sectors are payments and remittances, loans, and business finance management, highlighting the importance of fintech for financial inclusion in the region.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇧🇷 Celcoin, the Brazilian banking as a service company, raised a $120 million Series C led by Summit Partners, and with the participation of Innova Capital.

🇲🇽 Clip, the Mexican payments platform, raised a $100 million round of funds administered by Morgan Stanley Tactical Value.

🇵🇪 Moonflow, the Peruvian accounts receivable management software startup, raised a $1.8 million Seed round led by TheVentureCity, Salkantay Ventures, Amador Holdings, and Morro Ventures. 

💰 Venture funds 

🇨🇴 Latin Leap Venture Capital Studio, the Colombian VC fund,  announced a series of investments for entrepreneurs in Colombia. 

☯️ Exits

🤝 M&A - Fintech

🇲🇽 Finsus, the Mexican digital financial services provider, announced the acquisition of Distrito Pyme, the Mexican credit technology platform for SMEs, to launch its new Crédito Digital Pyme. This initiative enables digital loans to SMEs, offering pre-approved loans ranging from $28,000 to $83,000. No further details of the transaction were disclosed.

🇲🇽 DiDi México, the mobility platform, announced the acquisition of JP Sofiexpress, the Mexican financial institution registered as a popular financial society (Sofipo), to expand its financial services in the country. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🌎 Prometeo, the Uruguayan open banking platform, announced its expansion to the US with its account validation solution. This feature aims to allow seamless integration for verifying bank accounts in LatAm and the US, facilitating international transactions.

🇧🇷 Belvo, the Spanish-Mexican open finance platform, announced the launch of Pix Recorrente, enabling recurring payments through Pix. This new feature is designed for businesses with regular monthly payments and it offers secure payment initiation, aimed at reducing the need for credit cards and minimizing defaults by automating payment collections.

🇧🇷 InfinitePay, the Brazilian financial services platform by CloudWalk, announced it is leveraging AI and open finance to customize transaction fees for its card machines. By analyzing customer profiles and categorizing them into three revenue brackets, the company aims to save clients $55 million annually. 

🇧🇷 Scalable, the Brazilian fintech focused on credit for startups, announced the launch of Scalable Analytics to analyze recurring revenue and help unlock credit access in Brazil. The company collects and organizes financial data to offer tailored credit solutions. 

🇦🇷 Prosegur Crypto, the Spain-based digital asset custody division of Prosegur Cash, announced a new cold storage crypto bunker in Argentina. This facility, following their operations in Spain and Brazil, aims to protect digital assets from hacks and online theft by keeping private keys entirely offline. 

🇧🇷 Nubank announced it will allow its customers in Brazil to pay for fuel at Shell stations using NuPay. This integration enables users to link their bank details for credit or debit payments in just one click, enhancing convenience at the pump.

🇧🇷 iFood, the Brazilian food delivery platform, announced the launch of iFood Pago, a digital bank  the restaurant industry. With 140,000 accounts, a $8 billion credit portfolio, iFood Pago integrates credit, data (CRM), and acquiring services. 

🌎 dLocal, the Uruguay-based cross-border payment platform, and Eneba, the European growing gaming marketplace, announced a partnership to enhance gaming access in LatAm. The partnership aims to provide various payment methods, including bank transfers, card and cash payments, and PIX, across countries such as Argentina, Brazil, Chile, and Mexico. 

🇲🇽 Xepelin, the digital financial services platform, announced the launch of XData, a tool designed to detect suspicious financial behaviors. In its first month, XData has analyzed over 12,000 companies, flagging 30% as high risk and identifying 1,358 highly suspicious invoices.

🇲🇽 Klar, the Mexican digital financial services provider, announced the launch of  "Meses Sin Intereses" (MSI) for its credit card users. The MSI service offers flexible payment terms from 3 to 24 months for purchases over $15 at various retailers. 

🏦 Financial Services & Banking

🇨🇱 Banco Security, the Chilean traditional financial institution, announced the launch of Security HUB, a digital API platform enhancing transaction automation and security for corporate clients. The new "Pagos de Altos Montos (LBTR)" feature enables instant transfers up to $5 million.

🇲🇽 Citibanamex, the Mexican banking institution, and Belvo, the Spanish-Mexican open finance platform, announced a partnership to leverage open finance to provide credit access to the unbanked. The partnership aims to extend credit to users without a credit history and improve financial services, using secure data sharing to verify employment and economic activity.

🇲🇽 Comex, the Mexican architectural coatings company, and Kushki, the Ecuador-based payment processing company, announced a partnership aimed to enhance payment solutions for Comex's network of distributors, offering both electronic and digital payment options. 

🇵🇾 Bancard, the Paraguay-based payment processor, and PayGoal, the Argentinian payment solutions provider, announced the launch of Tokefon in Paraguay. Tokefon uses NFC technology to enable contactless payments via mobile phones, turning over 70,000 establishments into portable POS terminals. 

📜 Policy

🇦🇷 Argentina’s government assured the IMF that regulations are underway to guarantee equal conditions between banks and the fintech industry.  

🇨🇴 Colombia’s financial regulatory agency announced that they will publish several regulations regarding Open Finance  starting December 2024. 

📰 Other News 

🌎 Angélica Castellanos was named Chief Operating Officer at Bitso.

🇧🇷 Tiago Ladeia was named Senior Investment Manager and Head of LatAm at Experian Ventures.

🌎 Orium, the specialize in composable commerce, customer data, and retail data platforms, acquired the ecommerce agency Gluo. This acquisition will strengthen Orium’s capabilities in providing e-commerce and digital transformation solutions in the region. No additional details about the transaction were disclosed.

🇲🇽 Decelera, the first startup decelerator, announced "Decelera Mexico 2024" a new program for Latam startups set to take place in Riviera Maya from October 3 to 12, 2024. This exclusive program will select 20 promising startups and guide them through a transformative 9-day journey, structured around the phases of Breathe, Focus, and Grow. With investments of up to $300,000 for participants, the call for startups is currently receiving applications.

📚 Deeper Reads

Enhanced digital identity needed secure business growth

Argentina President Javier Milei promotes bitcoin and free currency competition

Digital transformation for microfinance: an unfinished agenda (ES)

Credit and debit cards as we know them will disappear; this will be the new payment method (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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