Mexico Fintech Chatter – October 21st, 2024
Mexico Fintech News
Nu Mexico sees portfolio contraction in September, according to regulatory data
Consumer watchdog Condusef disclosed loan portfolio balances for Sofipos as of September (CNBV, which publishes much more detailed data, has only published figures as of July). Nu Mexico posted its first month-on-month contraction of the year (sixth since becoming a Sofipo in December 2022), with performing loans declining by MXN 304 mn or 1.9% relative to August. Its NPL ratio bounced back to 8.3%, same as in January of this year (the adjusted ratio, which includes write-offs, stood at 23.4% in July). We believe this likely reflects persistent credit quality issues, as the company continues to adjust its Mexican risk model. Among the other Sofipos, fintech Klar posted a notable 11% m-o-m growth in performing loans; however, its non-performing actually rose faster, at 14%. Stori saw 7% growth in its performing portfolio, faster than non-performing loans at 2%.
Chart of the Week – Nu Mexico’s Monthly Portfolio Variations, Provisions and Write-Offs
Fintech “Boom” in Mexico Expected to Continue Through 2025, Says Moody’s
In another fIntech puff piece, Moody’s expects the fintech sector in Mexico to continue to grow in 2025, contributing to the development of the country’s financial system. The increasing demand for digital financial services and innovations in the sector are expected to drive this expansion. The report also suggests that fintechs will play a crucial role in enhancing financial inclusion and creating more opportunities within the formal financial system, particularly those that might receive bank licenses in the coming months.
El Universal, 10/14/24, Antonio Hernández: Fintech boom to continue through 2025.
Albo obtains credit line, says it will be profitable in a few months
Fintech Albo obtained a US$60 mn credit line from SixPoint Capital Management. The company said it would use the funds to boost its personal and enterprise credit offerings, which it expects to help it become profitable, which CEO Ángel Sahagún described as a “critical goal”, in a scenario of increased competition. Albo, serving over 3 million users and having facilitated more than US $130 million in credit placements, is dedicated to delivering financial solutions to underbanked communities in Mexico.
El Economista, 10/16/24, Sebastián Estrada: Fintech Albo to reach profitability in a few months, after US$60 mn credit line.
Paysend Libre Launched in Mexico to Improve Access and Speed of Remittances
UK fintech has launched its new service, Paysend Libre, in Mexico, aimed at enhancing access to remittances by providing faster and more affordable cross-border payment options. The service, a partnership with Mastercard, will allow the sender to initiate the transfer with just the phone number of the recipient. The recipient can then directly access the funds in real-time via a virtual Paysend Mastercard.
The Fintech Times, 10/17/24, Staff: Paysend Libre Launched in Mexico to Improve Access and Speed of Remittances.
Stori Launches New Investment Product “Inversión+”
Stori has introduced “Stori Inversión+,” a fixed-term investment product offering returns of up to 15.50% for periods of 90, 180, or 360 days. With a minimum investment of just $100 MXN, users can earn higher returns, without fees or commissions. This new product follows Stori’s recent expansion efforts, including its expansion to Colombia, and aims to provide users with better financial management options.
El Universal, 10/10/24, Staff: Stori launches Inversión+.
Blow to Rappi potential IPO as Gig Worker costs set to soar
The government’s proposal to require delivery workers and drivers to be given social security and other employee benefits could hinder Rappi’s IPO plans. The new law would substantially increase costs and labor liabilities for companies such as UBER, Rappi, Didi, among others. By sharply raising costs and thus prices, demand for such services could plummet, reducing the demand for labor, hurting the very people the reform is meant to help.
Proceso, 10/16/24, Staff: Sheinbaum presents initiative to regulate app-based employment.
Other news
Reminder – Mexico Tech Week starts today: Official Website.
Forbes México, 10/16/24, Martin Weidemann: Challenges slowing down fintech innovation.
El Financiero, 10/17/24, Lizeth Martínez: Technology and Women’s Financial Freedom.
Press Release, 10/17/24: Jüsto Secures USD $70 Million in Equity and Debt Financing from General Atlantic, HSBC, and Others to Accelerate Growth.
LatAm Fintech News
Fintual launches AI-powered investment assistant
Fast-growing Chile and Mexico-based wealth management fintech Fintual announced it has introduced a generative AI-powered investment assistant. The tool, available in its app, provides insights into the user’s portfolio, and is able to answer clients’ questions. Fintual low fees, user-friendly interface, diversified portfolios, and top-notch regulatory compliance, have made it the investment platform of choice for Chile and Mexico’s savvy digital savers.
Diario Financiero, 10/10/24, Marco Zecchetto: Fintual reaches new level, launches AI-powered assistant.
MACH to Launch Credit Card in Chile by 2025
BCI’s MACH platform in Chile is set to launch its first credit card in the first quarter of 2025, with plans to offer consumer loans by the second half of the year. This move marks MACH’s expansion into new financial services.
Iupana, 10/11/24, Ivis Aguilera: Strategic FinTech News.
PXP Financial Selects Kushki to Expand Its LATAM Footprint
PXP Financial, a global payment solutions provider, has partnered with Kushki to strengthen its presence in Latin America. This collaboration will allow PXP to leverage Kushki’s expertise in local payment methods, enabling businesses to offer seamless transactions across the region. The partnership is expected to enhance payment processing capabilities and improve customer experience in LATAM markets.
The Fintech Times, 10/16/24, Staff: PXP Financial selects Kushki to expand its LATAM footprint.
Davivienda Acquires ePayco in Colombia
Davivienda, a major Colombian financial group, has acquired 100% of ePayco, a digital and physical payment platform. This acquisition strengthens Davivienda’s position within Colombia’s electronic payments ecosystem, expanding its reach and capabilities in digital transactions.
Iupana, 10/11/24, Ivis Aguilera: Strategic FinTech News.
Contabilizei Attracts $125M Investment from Warburg Pincus
Brazilian digital accounting platform Contabilizei has raised $125 million in an investment led by Warburg Pincus. This funding will help Contabilizei scale its services, which focus on providing accounting and tax solutions for small and medium-sized businesses (SMEs) across Brazil. The capital will further support the company’s mission to streamline financial management for SMEs in the country.
LatamList, 10/14/24, Matheus Tomé: Contabilizei attracts $125M investment from Warburg Pincus.
Other news
ESAN, 10/16/24, Luis D’Ambrosio: The Fintech Revolution in Peru.
El Colombiano, 10/13/24, Miguel Alguero: Nubank and Rappi lead fintech revolution in Latin America.
LatamList, 10/11/24, Matheus Tomé: Tuna raises $2M in a round led by Abseed.
LatamList, 10/11/24, Sara Delgado: Barte raises $8M Series A round.
Press release: Nubank launches coupon Hub in Shopping do Nu.
Global Fintech News
20VC Closes $400M Fund to Focus on European Startups
Harry Stebbings’ 20VC has raised a new $400 million fund aimed at bolstering Europe’s tech ecosystem. The fund, which is part of 20VC’s mission to “make Europe great again,” will focus on early-stage startups across the continent. Stebbings emphasizes the importance of supporting European founders and helping them compete on a global scale.
TechCrunch, 10/15/24, Paul Sawers: 20VC closes $400M fund to “make Europe great again”.
Venture and Private Equity Funds Prioritize Fintech Investments
Khosla Ventures raised $405 million, with many funds focused on fintech investments. Buckley Ventures is targeting $250 million for its fourth fund, while BNP Paribas Asset Management launched a private credit fund under European regulations. This trend highlights the strong investor interest in the fintech sector, reflecting the significant growth potential of financial technology innovations in reshaping global markets.
PitchBook, 10/18/24, Staff: Global VC and PE Fundraising News.
FIS Teams Up with Fulham FC: A Game-Changer for London’s Fintech Scene
Financial technology giant FIS has partnered with Fulham FC to bolster its presence in the London fintech landscape. The partnership is expected to enhance fan experiences through cutting-edge financial services while establishing FIS as a key player in London’s thriving fintech ecosystem.
FF News, 10/17/24, Staff: FIS teams up with Fulham FC: A game changer for London’s fintech scene.
8i Ventures Earns 12x Return on Full Exit from M2P Fintech
8i Ventures, an early-stage India-focused VC fund, announced a full exit from its investment in M2P Fintech as part of a recent $100 million capital raise. The raise included primary and secondary investments, delivering a 12x return for 8i Ventures. M2P Fintech has become a leader in digital payments, lending, and banking infrastructure across Asia.
FF News, 10/17/24, Staff: 8i Ventures earns 12x return on full exit from M2P Fintech.
Other news
The Fintech Times, 10/17/24, Staff: Fintech Scotland unveils winners tackling ESG integration challenges.
Bloomberg, 10/16/24, Emily Mason: Stripe in Advanced Talks to Acquire Stablecoin-Focused Fintech Platform Bridge.
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