$238.8 million in fintech funding (equity and debt)

Hola amig@s fintech,

Happy Day of the Dead, Feliz Día de Muertos! Happy Halloween as well! As usual, we had a great time dressing up in costumes, attending parties, and creating our 'altares de muertos' to honor our loved ones who have passed away. 

Before October ended, TWIF co-hosted a dinner for prominent fintech executives in São Paulo, in partnership with Clara, the all-in-one payments solution for companies in LatAm. They've introduced a new invoice matching feature that allows companies to effortlessly link expenses to invoices, saving time and increasing transparency. If you want to learn more, you can sign up here."

💛 Until next weekend. Até a próxima!

Lorena

 Want to sponsor an event with the TWIF Latam community?  Check out the FAQ here, send us your info via this form or reach out to kate@thisweekinfintech.com

📊 Stat of the Week

From 2008 to 2022, the percentage of Colombians who have access to financial products and services increased from 55% to more than 90% (Source).

📖  Read of the Week

According to Fintech Radar Argentina, from Finnovista and Visa, the Argentinian fintech ecosystem has 343 companies. From 2021 to 2023, there are 154 new ones, but 87 startups ceased operations, which represents a mortality rate of 31.5%.

🎙️Podcast of the Week

✍️ Post of the Week

Matias Garrido through LinkedIn

💸 Venture Financing

💸 Equity

🇧🇷 QI Tech, the Brazilian banking-as-a-service platform, raised $200 million in a Series B funding round, led by General Atlantic and with participation of Across Capital.

🇨🇱 Fracttal, the Chilean asset management startup, raised $10 million in a Series B round led by Kayyak Ventures and the participation of GoHub Ventures and Amador Holdings.

🇨🇴 Finkargo, the Colombian company that finances merchandise purchases for import companies in Colombia and Mexico, raised $20 million in a Series A investment round, led by QED Investors and with participation from Nazca, Quona, Flybridge, Maya, and ONEVC.

🇲🇽 Verqor, the Mexican financing agriculture startup, raised $7.5 million. The funding includes a $4 million pre-Series A round led by Yara Growth Ventures, with participation from Accion Venture Lab, SP Ventures, GLOCAL, and Amplifica Capital. An additional $3.5 million was secured through a debt round involving Co_Capital and Addem Capital. 

🇲🇽 Axify, the Mexican SaaS company specialized in prepaid services, raised $1.3 million in a Seed round led by Alphia Impact 8 and Avalancha Ventures. 

💰 Venture funds 

🇧🇷 Endeavor Brazil's Scale-Up Ventures II fund raised $15 million to support the startups in their seed or Series A stages, which have completed the Scale-Up program. While the primary focus will be Brazilian innovations, there is a potential expansion to other Latam countries. The fund received contributions from Locaweb Ventures, Mago Capital, and 051 Capital.

🇲🇽 Legal Paradox, the Mexican law firm, announced the launch of Paradox Ventures, their private equity fund with a focus on fintech, with an initial investment of $2.5 million, aiming to support 30 companies.

☯️ Exits

🏦 M&A - Bank & Fintech

🇺🇾 Itaú, the Brazilian traditional financial institution, announced the acquisition of a 40% stake in Handy, the Uruguayan payment services company providing POS services. Itaú aims to expand its banking opportunities to businesses and retailers across Uruguay. The transaction is subject to regulatory approval in both Uruguay and Brazil, expected in the next year. No further details were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇺🇾 Prometeo, the Uruguay-based open banking platform, announced a new feature that allows businesses to create real-time payment links and QR codes, streamlining the payment and collection process for their customers.

🇲🇽 Belvo, the Mexican open finance API platform, announced its entry into the payments segment in Mexico, expanding as previously done in Brazil and Colombia. With an Electronic Payment Funds Institution (IFPE), the company will enable recurring payments through bank direct debit.

🇨🇴 Kuadra, the Colombian platform offering management tools, microcredit access, and financial solutions, announced its expansion into Ecuador after winning Netlife Ecuador's Xcalife program. The company aims to serve Netlife's 55,000 SMEs customers by 2024.

🌎 Druo, the US-based online payment gateway for businesses and Yuno, the Colombian payment orchestrator, announced a partnership to introduce a payment solution for businesses, to directly collect payments into bank accounts also internationally.

🏦 Financial Services & Banking

🇨🇴 Bancóldex, the Colombian Foreign Trade Bank, announced the launch of 'neocréditos' on a digital platform, simplifying the loan process for Colombian micro-entrepreneurs. This initiative aims to streamline credit access for micro-entrepreneurs across the country, with loans extending up to 36 months and reaching 30 departments and 280 municipalities.

📜 Policy

🇨🇴 Colombia's Central Bank published the guidelines enabling interoperability in low-value instant payment systems, the country’s “Pix.” The new system is set to be international and will involve integration with other countries. The guidelines include general rules, technical details, and the obligations of participating entities. The Central Bank will integrate the instant payment tool to open finance. 

🇧🇷 Brazil’s Central Bank released a resolution to make the process to renew consents for open finance data sharing easier. It also increases the validity periods of participating institutions. Currently, the periods are for a maximum of 12 months, and to renew a previous consent, one must go through all the process of a new one. The person maintains the right to revoke the consent whenever she or he wants. 

🇧🇷 Brazil’s Central Bank approved the acquisition of Bexs exchange bank by British fintech Ebury, a financial services company under Santander's ownership. The institution also approved several startups to operate as payment institutions: Aarin, …, Flash, …, Liquido, which specializes in flexible benefits, and Zoop, the fintech infrastructure provider.

📺 Sponsored Content

Ever dreamed of seeing your company logo in Times Square? Tell us how your data-powered fintech is redefining the investment and wealth sector for a chance to win a full VIP guest experience at Nasdaq MarketSite. 

Enter now to win this once-in-a-lifetime opportunity. 

Want to sponsor a newsletter? See our sponsorship information here or reach out to latam@thisweekinfintech.com.

📰 Other News 

🇧🇷 Prosegur Crypto, the Spain-based multinational company that offers security solutions and services, announced the creation of a crypto asset custody bunker in Brazil, a country that occupies the ninth position in terms of the use of cryptocurrencies.

🌎 Kamay Ventures, the multi-corporate regional investment fund, announced the entry of Grupo Bimbo as an investor. The fund aims to invest in startups that develop digital commerce, fintech, supply chain digitization, agriculture, biotechnology and environmental solutions.

🌎 SVB seeks to recover startups in Latam after the banking collapse, however, in addition to regaining the trust of its clients, it has to face competition from institutions that captured clients after its financial crisis.

📚 Deeper Reads

How embedded lending changes the game for non-fintech startups

Metal cards and biometrics: enhancing payment experiences

Why venture capitalists aren’t afraid of losing money

VCs No Longer Do DTC

Platformization of digital payments in Latin America (ES)

One year after the collapse of FTX, the crypto market adapts to survive (ES)

COVID-19 financial support for El Salvador was used to promote Bitcoin adoption (ES)

🔦 Spotlight on Daniela Olavarrieta, Senior Investment Analyst at Cultivo / Content Writer at TWIF Latam

Q. Three words to describe yourself? 

A. Empathy, grit, and resilience. 

Q. What has been the most exciting part of your collaboration with TWIF?

A. The most exciting aspect of collaborating with TWIF is the opportunity to connect with inspiring individuals in the fintech world while staying on the pulse of the latest developments in Latam. It's not just about information; it's about building relationships and being part of a dynamic community.

Q. What is making / will make a huge difference for financial inclusion?

A. The game-changer for financial inclusion is the proliferation of digital banking and mobile payment solutions. These innovations are empowering people who were previously excluded from the financial system, enabling them to access essential services and participate in the economy like never before.

Q. What are you most excited about with regard to Latam fintech right now? 

A. What truly gets me buzzing about Latam fintech right now is the sheer level of innovation and growth. The region is a breeding ground for ingenious financial solutions, and I'm eagerly anticipating how these advancements will reshape the financial landscape, making it more inclusive and accessible for everyone. The energy in Latam fintech is infectious!

Q. One resource you would recommend for those interested in learning more about fintech?

A. For those keen to explore the world of fintech, I recommend our very own weekly newsletter. It's like your cheat sheet to all things fintech! 

📣 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

👍👎 Did you like this edition of TWIF Latam?  Take a 1-minute anonymous survey here.

Come meet us in person at www.thisweekinfintech.com/events. You can also join our global community on Twitter, LinkedIn, and Instagram.