Hola amig@s fintech,

Our TWIF LatAm edition just reached 50,000 subscribers! Thank you all for your support and interest in what we do, we’ll keep bringing you the fintech news of our region each week! And if you want to keep engaging with the team, we remind you of these upcoming events: 

TWIF exclusive RiskCon Dinner on September 3, co-hosted by Oscilar in Mexico City! Enjoy a lively happy hour, a delicious dinner, and engaging discussions on credit, fraud, and risk management. Register now to join us!

Finnovista’s FINNOSUMMIT 2024 on September 25-26 also in Mexico City! You get a 20% discount as a TWIF paid subscriber, just email us at latam@thisweekinfintech.com. Secure your place! And one day before, We’re co-hosting a fireside chat and an insightful networking night in alliance with Accion Venture Lab, Niva, CFX Network, and BGBG on September 24. RSVP now here! 

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

In 2023, Mexican immigrants in the US sent $61 billion in remittances to Mexico, with California leading at $530 per capita. States like North Dakota, with a small Hispanic population, also saw significant remittances activity, reflecting a growing trend of Latinos moving beyond traditional states. This shows their increasing economic impact across the US (Source).

📖  Read of the Week

Bitso’s report “Crypto panorama in Latin America” analyzes crypto growth and adoption in LatAm, highlighting that Mexico and Brazil lead with the highest number of active users. The report also emphasizes the importance of stablecoins in cross-border transactions and how remittances have been a key factor in the expansion of crypto use in these countries.

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇧🇷 Ume, the Brazilian Pix payments offering startup, raised $15 millions in a Series A funding round led by PayPal Ventures, with participation from NFX, Globo Ventures, Clocktower Ventures, Big Bets, FJ Labs, Endeavor and Norte Ventures. The company also raised a $20 million FIDC, in partnership with Verde, Wersten Asset, Itaú, Credit Saison and Milenio.  

🇸🇻 Abaco, the Salvadorian financial startup for SMEs, raised $4 millions in a Pre-seed round with the participation of Caricaco Ventures, Cacao Capital, Innogen Capital Ventures, Invariantes Fund, Mercy Corps Ventures, and Bridge Latam.

🇪🇨 Mercately, the Ecuadorian B2B financial infrastructure software for companies to sell on Whatsapp, raised a $2.6 million Seed round led by Inventus Capital Partners and SVQuad, with participation from Techstars, Salkantay Ventures, and BuenTRip Ventures.

🇨🇴 Puntored, the Colombian financial services habilitator company, announced a $2 million investment from the Stellar Development Foundation. 

☯️ Exits

🤝 M&A - Fintech

🇲🇽 Finsus, the Mexican Sofipo aiming to become a bank, announced the acquisition of Pulpi, the Mexican payroll loans and salary advances platform. This acquisition enables Finsus to expand its services to 70,000 workers, leveraging Pulpi's established portfolio and technology. No further details of the transaction were disclosed.

🇺🇾 Handy, the Uruguayan payment solutions provider, announced it has completed the sale of a 40% stake to Itaú Unibanco, the Brazilian financial institution. This partnership aims to enhance Handy's offerings for SMEs by integrating Itaú's expertise in digital banking and embedded applications. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇨🇴 Stori, the Mexican digital financial platform, announced its expansion into Colombia with a $100 million investment over the next three years. The company will offer its "S" credit card, focusing on providing access to credit for those with limited or no credit history. 

🇨🇴 RapiCredit, the Colombian digital lending platform, and Alianza In, the Colombian initiative combating fraud, announced a partnership aiming to protect users from abusive practices by illegal lending platforms and promote transparency and security in this online activities. 

🇨🇴 Nubank announced the launch of a pilot program in Colombia called Nu Plus, designed to reward credit card users with financial benefits. Selected participants can earn Nu Points, which can be redeemed for credit card payments or reduced interest rates, by meeting monthly spending goals.

🇦🇷 Littio, the Colombian financial systems platform, announced the launch of a US bank account service for Argentinians, allowing users to access international banking and investment options. The account offers benefits like low-fee ACH and US Wire transfers, capital growth through US Treasury bonds, and future access to accounts in other currencies such as euro. 

🇦🇷 Bitso, the Mexican crypto platform, announced the introduction of QR code payments for tourists in Argentina, allowing them to make purchases using crypto like Bitcoin, Ether, and stablecoins. This new feature simplifies travel by enabling visitors to bypass traditional currency exchange, paying directly with crypto.

🇩🇴 Qik, the Dominican Republic-based neobank and a subsidiary of Grupo Popular, announced the launch of a fully digital certificate of deposit, enabling users to easily invest and manage their savings directly from their mobile devices. With tiered interest rates, these certificates offer higher returns for larger investments, and interest is paid out monthly.

🏦 Financial Services & Banking

🇨🇴 Dock, the Brazilian banking and technology provider, and Visa, announced a partnership to enhance financial inclusion in Colombia by increasing access to electronic payments. This collaboration will allow Dock to offer Visa's services to third parties, supporting companies in launching financial services. 

📜 Policy

🇧🇷 The Brazilian Central Bank established the deadlines for production testing of the payment transaction initiation service without redirection in Open Finance, which will begin on November 14. The access for the general public will be on February 28, 2024. 

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📰 Other News 

🇲🇽 The International Organization for Migration (IOM) signed an agreement with Banco Azteca to provide financial assistance to migrants, enhancing access to banking services.

🇨🇴 BBVA Spark provided up to $10 million in funding to BIA Energy to support its energy platform. This investment aims to advance clean energy initiatives in Colombia, with BIA Energy focusing on innovative solutions in the renewable energy sector.

🇲🇽 Temu, Shein, and AliExpress have surpassed Liverpool, Walmart, and Coppel in user numbers in Mexico, reflecting the growing preference for international e-commerce platforms over retail giants.

🌎 Gartner Magic Quadrant named Stripe as Leader in 2024 for its Billing product. In Mexico and LatAm, different companies are using Stripe Billing to manage their subscriptions. 

🌎 Bdeo, the insurtech that provides a visual intelligence solution, launched a new platform that allows users to manage insurance claims in just minutes using mobile photos. This innovative service aims to streamline claims processes, making them more efficient and user-friendly.

📚 Deeper Reads

Argentina’s economic shock therapy and fintech boom are wiping out peso notes 

Social responsibility of banks and financial inclusion in Latin America (ES)

The Mexican financial system is highly concentrated (ES)

Digital payments in Mexico: Ready for a cashless future? (ES)

Technological unicorns (ES)

If you're a first-time boss, you're probably doing something wrong: what and how to stop doing it? (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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