Hola amig@s fintech,

We want to thank all of you who joined us in our events this past week. We always enjoy getting to know you and we always appreciate your feedback on the work we do, the newsletter and events. 

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

According to a recent report by the Inter-American Development Bank and Finnovista, the region has seen a 340% increase in fintechs since 2017, with the majority concentrated in Brazil, Mexico, Argentina, Colombia, and Chile. These modern financial players are revolutionizing services like payments, lending, and digital wallets, challenging long-established institutions and transforming the financial landscape.

📖  Read of the Week

Visa’s new perspective paper, "Micro and Nano Merchants Fueling LatAm & Caribbean Economies," sheds light on the pivotal role small businesses play in the region. With 99.5% of firms being SMBs, responsible for 60% of formal employment, the report explores the challenges they face and highlights opportunities for financial institutions to support their digital transformation through payments innovation. 

🦉 Post of the Week

🎙️ Podcast of the Week

💸 Venture Financing

💸 Equity

🇨🇴 ExcelCredit, the Colombian credit company, secured a $50 million funding from Nomura, the Japanese bank. 

🇧🇷 Gibb, the Brazilian on-demand salary solutions startup, received an investment of $5.5 million from SRM Ventures.

🇧🇷 Noodle, the Brazilian financial services startup for content creators and influencers, received a $920,000 Seed round from QED Investors.

💵 Debt 

🇧🇷 Mercado Pago completed the issuance of its first financial letter for $184 millions, coordinated by Itaú BBA. This consisted of two series of $92 million each. 

💰 Venture funds 

🇵🇪 Worthit, the new Peruvian micro fund, will invest in more than 20 LatAm startups.  

☯️ Exits

🤝 M&A - Fintech

🇧🇷 RecargaPay, the Brazilian super payment app, announced the acquisition of the micro-entrepreneur client portfolio of Celcoin, the Brazilian financial infrastructure company. This move will allow RecargaPay to expand its offerings to the corporate sector while Celcoin shifts focus to BaaS and embedded finance. No further details of the transaction were disclosed.

🚀 Product Launches & Partnerships

💻 Fintech 

🇧🇷 Mercado Pago announced it has leveraged Open Finance to provide 30,000 SMEs with faster access to credit. By enabling customers to share their financial data, the company has reduced the credit approval process from up to a year to just one month. The company is also launching management software tailored for SMEs, consolidating tools like inventory management and sales reports.

🇨🇴 inDrive, the Russian ride-hailing app, announced it has launched inDrive Money in Colombia, offering drivers income-based loans. Partnering with R2, the Mexican embedded lending platform, the service provides cash loans of up to $250 with repayment tied to drivers' activity on the app.

🌎 Mattilda, the Mexican startup for school payment management, and Tapi, the Argentinian payment solutions platform, announced a partnership to simplify tuition payments for over 100,000 families. This collaboration aims to support schools struggling with high delinquency rates.

🌎 Osmo, the Costa Rica-based bitcoin and lightning network wallet, announced it has expanded its suite of financial services. Users can now top up their wallets using Sinpemovil, a local payment method linked to mobile phones, debit, and credit cards. Osmo also enables users to convert between fiat currency, bitcoin, and USDC, and transfer funds to the US and Mexico. 

🌎 Bnka, the digital banking platform for LatAm migrants, announced it has reached 25,000 users by providing easy access to European financial services. With its multi-currency wallet, users can obtain a free Euro IBAN and a VISA card using only their native passport, bypassing traditional banking requirements. 

🏦 Financial Services & Banking

🇦🇷 BIND, the Argetinian commercial banking company, announced it has expanded to Vaca Muerta, aiming to support the region's energy sector with innovative financial solutions. 

📜 Policy

🇧🇷 Bulla, the Brazilian credit and corporate benefits startup, received approval from the Central Bank of Brazil to operate as a payment institution. The company is also waiting for the Direct Credit Company license. 

🇲🇽 Mercado Pago announced it has filed for a banking license before the financial regulatory authorities of Mexico. 

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📰 Other News 

🇲🇽 Oxxo, the Mexican convenience store chain, announced it has appointed Carlos Arroyo Rico as its new director starting in November.

🇨🇴 Yuno, the Colombian payment orchestration platform, announced it has appointed Walter Campos as its new general manager in Brazil. This leadership change follows Yuno's $25 million Series A funding round in March.

🇧🇷 GooRoo, the Brazilian payroll loan fintech for SMEs, announced it has appointed Marcelo Tadeu as its new Head of Operations. 

🇨🇴 Nubank announced it proposes eliminating Colombia’s usury rate to improve financial inclusion and reduce reliance on informal lending. Its CEO suggests a more flexible regulatory framework, allowing differentiated interest rates based on loan types.

🇺🇾 Flipando AI, the Uruguayan regtech platform, announced it has secured a $600,000 investment to expand its FlipFlow platform, which automates cross-border compliance for financial institutions. The company plans to launch operations in Paraguay and Mexico. 

📚 Deeper Reads

Why investment is leaving LatAm in 2024, according to JP Morgan Colombia

Fintech industry has a challenge to gain customers trust (ES)

Brazilians take out loans to place bets (POR)

📣 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 Daniela, and Lorena

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