$43.3 million in fintech funding (equity and debt)

Hola amig@s fintech,

As Hispanic Heritage Month in the US concludes today, it reminds us of the rich tapestry of cultures, which includes Hispanics and Latinos, bringing diversity to the country and also enriching our region. Embracing differences definitely enhances our understanding and connection to others.

And talking about connections, our Fintech Trek in Mexico City is set to kick off, and we're thrilled to have over 200 fintech enthusiasts joining the Happy Hour on October 19. You can still RSVP. Check out the details of the Trek here, and we look forward to seeing everyone there!

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 Sunday! Até a próxima!

• Lorena

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📊 Stat of the Week

Fintech Investments in Latam reached 35 transactions in Q1 2023, a drop of 69% drop YoY. Raising a combined total of $186 million in Q3 2023, a 66% drop YoY (Source)

📖  Read of the Week

The fintech ecosystem in Chile reached 300 companies in 2023, an annual increase of 29.5% since 2021. More than half of the business models  are  fintech payments and remittances (20.7%), enterprise financial management (17.3%), and lending (14.3%), according to Finnovista Fintech Radar Chile 

🎙️ Podcast of the Week

🦉 Tweet of the Week

💸 Venture Financing

💸 Equity

🇨🇱 Galgo, the Chilean financing startup, raised $40 million in a round led by Nazca, and with the participation of Grupo Auteco, WIND Ventures, Güil Mobility Ventures, Dalus Capital, Kayyak Ventures, Fynsa, Buena Vista Capital, and Amarena VC. Galgo will keep expanding in Chile, Peru, Colombia and Mexico.

🇧🇷 Sling Hub, the Brazilian startup connecting ventures and investment funds, raised $735,000 in a seed round led by former Oracle president Silvio Genesini. It also had the participation from Urca Angels. 

🇨🇱 Valuelist, the Chilean SaaS platform for the financial organization of assets, raised $600,000 in an investment from Synapse.

💵 Debt 

🇧🇷 Laqus, the Brazilian asset storage company, acquired almost $2 million in venture debt.

☯️ Exits

🤝 M&A - Fintech

🇧🇷 ZINK, the US-based software development and information technology platform, and SIZE, the Brazilian receivables financing platform, announced a merger to reshape the B2B credit solutions landscape. The merger is expected to result in substantial cost savings, extended credit terms, and increased profitability for investors and financiers.

🚀 Product Launches & Partnerships

💻 Fintech 

🇨🇴 Druo, the Colombian payment network, announced a new offer of real-time transactions to 18 banks, reducing processing times to seconds. Customers can now conduct instant transactions, such as subscription payments, credit placements, payroll, and supplier payments.

🇲🇽 Ualá, the Argentine financial services platform, announced an increment in its Mexican offerings with a 5% cashback on credit and debit card purchases and an increase in savings returns from 9% to 12%.

🌎Belo, the Argentine crypto wallet, announced a USD account for users to receive international transfers through ACH and Wire, with funds arriving in USDC. This aims to simplify income access for people working abroad, such as freelancers, remote workers, and content creators.

🇧🇷 EBW Bank, the payment solution platform from Brazil’s Federal District, launched Passou Ganhou, a payment solution for the Brazilian market. It uses CND-RS technology to let retailers create geolocation-based ads and allows customers to access promotions.

🌎 Pronus, the Colombian investment and innovation boutique for financial institutions, and Págame, the Ecuador-based mobile digital correspondent, announced a partnership enabling entrepreneurs to access services and products from their mobile devices that were traditionally available only in physical stores. 

🏦 Financial Services & Banking

🇦🇷 Cencosud, the Chilean multinational retailer, announced its entry into the fintech ecosystem in Argentina with the digital account CencoPay. This platform will allow users to manage money, pay with QR codes in Cencosud stores with discounts, and get a daily 2% cashback on purchases.

📜 Policy

🇨🇴 The Superintendence of Industry and Commerce of Colombia (SIC), the financial regulatory agency, established clearer measures regarding fintech credit offerings in Colombia, such as transparent information and service guarantees to consumers. The SIC recently imposed a fine of $147,000 on Wadana Finance Colombia after the agency found that the company did not disclose the applicable annual effective interest rate to loan consumers. 

🇩🇴 The national agency ProDominicana presented the Fintech survey in the Dominican Republic. The survey emphasizes the need to promote the internationalization and growth of SMEs. Notably, 59% of companies have made sales in other markets, and 26% reported receiving new capital in 2022. The presentation took place during the Caribbean Community and Common Market (CARICAM) Fintech & Insurtech Summit 2023. 

📰 Other News 

🇧🇷 Brazil moved to the 21st place in the World Financial Inclusion Index, The country rose 14 positions within 42 markets analyzed between 2022 and 2023, progressing in financial inclusion. This is explained, mainly, by the drive of Pix. 

🇪🇨 Kushki, the Ecuador-based integrated payments and omnichannel solutions platform, became the first non-banking regional acquirer for merchants in Latam, being the intermediary between businesses, card issuers, and banks.

🇨🇱 Colledge, the Chilean Web3 academy, announced a partnership with Web3 leaders to launch a program boosting blockchain and Web3 development in Latam. This initiative combines education in blockchain technology and community mentorship to equip participants with essential skills. 

🌎 Galileo, the leading financial technology company owned by SoFi Technologies, received a Mastercard certification to provide services simultaneously in five new Latam countries: Argentina, Brazil, Chile, Peru and Uruguay.

🌎 Mercado Pago exceeded open finance's goal of 2.5 million consents to access financial information at other institutions, enabling a more accurate and efficient credit analysis.

🌎 Krealo, the Credicorp's Corporate Venture Capital company, announced the 10 startups in the region that will participate in the “Future of Financial Services” accelerator program, carried out along with the BCP InnovaCXion Center and Seedstars.

📚 Deeper Reads

How Are Fintechs Ensuring Financial Inclusion?

Inspired by Pix, instant payments are moving forward in Latin America

When Is A Startup Not A Startup Anymore? And Why Does It Matter?

Decline in initial investments shakes the startup ecosystem in Latin America

New trends in alternative payments (ES)

The role of cryptocurrencies in the Israel-Palestine conflict (ES)

Pix places Brazil at the forefront of payments in Latin America (PO)

Made in Latam with 💛 by Elena, Daniela, and Lorena

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