Mexico FinTech News
Nu Posts Muted Growth in February; Credit Quality Still a Concern Across the Board
Nubank remains unable to reignite growth, with a marginal 0.2% MoM increase in performing loans in February, according to preliminary data released by financial consumer watchdog Condusef. Non-performing loans declined 2.2%, bringing the NPL ratio to 8.0% from 8.2% in January, though lacking write-off data, it’s not possible to say for sure whether credit quality actually improved; in fact, the decline in peso terms in NPLs was just P$35 million, much lower than the average monthly write-off posted over the past year, of P$275 mn. Meanwhile, Klar and Stori once again posted better growth, up 5.9% and 4.9%, respectively, but also rising NPLs, up 7.1% and 8.9%.
As for the fintech banks, more detailed data from CNBV again showed rather lackluster growth from underwhelming Ualá, up just PS$20 mn to P$314 mn (considering consumer loans only); deposits were essentially flat at a much higher P$5.9 billion; net losses for the month narrowed slightly to P$75 mn, from P$80 mn in January. Banorte’s troubled Bineo was virtually unchanged, with a net loss of P$98 mn, basically the same as the P$99 mn loss of January. Lastly, Santander’s Openbank recorded its first P$3 mn in loans, and much faster deposit growth, reaching P$168 mn; it lost P$62 mn in February, at a similar pace relative to January’s P$64 mn.
Nubank’s lackluster loan growth
Source: Miranda Partners, Condusef, CNBV. Figures in P$ mn. * Ualá considers consumer loans only.
Felix Pago Raises US$75 mn in QED-led Series B
Fintech Felix Pago raised US$75 million in a Series B round led by QED Investors. The remittance startup intends to expand its operations across LatAm, including in Colombia, Ecuador and Peru and broaden its product portfolio to offer loans and savings accounts. Last year, the company handled more than US$1 billion in remittances through its Whatsapp-based platform, with an average transfer of US$290. Valuation terms weren’t disclosed.
Bloomberg, 04/03/25, Valentine Hilaire and Michael O’Boyle: “QED Leads $75 Million Round for Remittance Startup Felix”
Banxico Urges Transformation of Financial Services to Be Faster, Cheaper, and More Inclusive
During the Second Fintech Week, Victoria Rodríguez Ceja, Governor of Banxico, called for a revolution in Mexico’s financial services to make them faster, cheaper, and more accessible. Highlighting persistent gaps in digital access—especially between urban and rural areas—she urged joint action among regulators, fintechs, and financial institutions to promote financial education, innovation, and inclusion. Only one in three Mexicans uses a physical card, and one in five uses electronic transfers, revealing the need for broader adoption. Rodríguez emphasized the importance of modern regulation to ensure consumer protection while fostering sector growth.
El Financiero, 04/03/25, Ana Martínez: “Banxico urges financial services revolution: ‘They must be fast and affordable,’ says Rodríguez Ceja”
TruBit Launches DeFi Product to Offer Bitcoin-Backed Loans Across Latin America
Latin American crypto exchange TruBit, licensed in Mexico and Argentina, has partnered with crypto lender Morpho to launch a new decentralized finance (DeFi) product offering Bitcoin-backed loans across the region. The solution allows users to interact with automated DeFi protocols through a simplified fintech front-end —described as a “mullet DeFi” model. This approach merges the user-friendly interface of fintech platforms with the backend efficiency of DeFi, making it easier for retail users to access crypto-secured lending.
Latam Fintech, 04/02/25, Staff: “TruBit launches DeFi product to offer Bitcoin-backed loans across Latin America”
Additional reading…
- “Yumi Hosaka Clark Joins Kueski’s Board of Directors”
- “3G Founder Telles Among Investors in Merama’s $215M Funding Round for Merama”
- “DiDi Moves Forward with Financial Services Bet in Mexico”.
- “There Were Only 13 Requests to Incorporate FinTech Institutions in 2024”
LatAm FinTech News
FinanZero Raises US$808K to Expand AI-Powered Loan Marketplace in Brazil
Brazilian fintech FinanZero raised US$808K from a mix of existing and new investors to enhance its online loan marketplace and explore the integration of AI tools. The platform partners with over 70 financial institutions, allowing users to compare pre-approved loan offers—including personal, property-backed, and working capital loans—with disbursements made within 48 hours.
LatamList, 04/04/25, Matheus Tomé: “FinanZero Raises US$808K”
Additional Reading…
- “Addi Secures US$70 mn in New Loan from Goldman Sachs and Fasanara Capital”
- “LatAm’s Insurtech Sector Closes 2024 with over 500 Companies” | Link to report
Global FinTech News
Klarna’s IPO on Hold amid Market Volatility
Klarna, the specialty lending and online payments provider, has halted its planned initial public offering, the latest IPO casualty in the wake of the Trump administration’s sweeping tariff announcement. The Sweden-based company was set to launch marketing shares for the offering Monday, but decided to postpone, people familiar with the matter said.
WSJ, 04/04/25,
Ben Dummett and Joe Wallace: “Klarna Pauses Planned IPO in Wake of Trump Tariff Announcement”
Circle Files for IPO; Might Reconsider due to Volatility
Stablecoin leader Circle filed for a potential US IPO, its second attempt at a NY listing. The company disclosed a nearly 16% jump in revenue to $1.68 billion for last year, compared with $1.45 billion in 2023. Net income from continuing operations was nearly $157 million in 2024 versus $271.5 million in the previous year. J.P. Morgan and Citigroup are the lead underwriters. However, the company is said to be “watching anxiously before deciding what to do”, following the market turmoil from President Trump’s tariff announcement, according to a report from the Wall Street Journal.
Reuters, 04/02/25, Niket Nishant: “Stablecoin giant Circle reveals revenue growth in US IPO filing” | Other sources: WSJ, 04/04/25, Corrie Driebusch and Angel Au-Yeung: “Tariff Turmoil Freezes the U.S. IPO Market”
Plaid Raises US$575mn at US$6.1bn Valuation Amid Fintech Market Reset
Plaid, the fintech platform connecting bank accounts to apps like Venmo and Robinhood, raised US$575mn in a new funding round, lowering its valuation to US$6.1bn—down from US$13.4bn in 2021. The round included new investors such as BlackRock, Fidelity, and Franklin Templeton. Despite the valuation dip, CEO Zach Perret stated Plaid’s revenue and business fundamentals have improved. The funds will be used for employee stock-related tax obligations and a share buyback program. An IPO remains on the company’s long-term roadmap, though no date has been confirmed.
Forbes, 04/03/25, Jeff Kauflin: “Plaid Raises US$575mn in Funding at US$6.1bn Valuation”
Trump’s Tariffs Serve as Wake-Up Call for European VCs
New U.S. tariffs introduced under Donald Trump, including a 10% baseline on all imports and up to 50% on selected countries, have sparked concern among European venture capitalists, especially those backing deep tech, hardware, and consumer startups. The increased trade barriers could lead to supply chain disruptions, higher costs, and slower IPO activity in the U.S., prompting some European startups to consider relocating operations stateside to avoid the impact. VCs are now urged to adapt investment strategies and build resilience in anticipation of prolonged trade volatility and political shifts in the global tech landscape.
PitchBook, 04/03/25, Staff: “Trump’s Tariffs Are a Wake-Up Call for European VCs”
Turbine Raises US$22mn to Help VC Investors Unlock Liquidity Without Selling Stakes
Turbine, a debt platform founded by Mike Hurst, has emerged from stealth with US$22mn in equity funding co-led by Alpha Edison and TTV Capital, plus up to US$100mn in debt financing from Silicon Valley Bank. The startup helps limited partners in VC and private equity funds access liquidity by using their fund stakes as collateral—offering an alternative to selling discounted assets on secondary markets. Interest rates are currently around 9%, which Turbine argues is a better deal than traditional liquidity routes. Its initial customers include the five VC firms that backed the equity round, with broader rollout expected soon.
TechCrunch, 04/04/25, Marina Temkin: “Turbine Raises US$22mn to Help VC Investors Get Cash Without Selling Their Stakes”
Zepz Secures US$165mn in Growth Financing Led by HSBC Innovation Banking and HSBC Private Credit
Zepz, the parent company of digital remittance brands WorldRemit and Sendwave, has secured US$165mn in growth financing. The funding round was led by HSBC Innovation Banking and HSBC Private Credit, with participation from other investors. This capital will be used to further develop Zepz’s technology platform, expand its customer base, and enhance its suite of financial services aimed at facilitating cross-border money transfers.
Fintech Finance News, 04/04/25: “Zepz Secures US$165mn in Growth Financing Led by HSBC Innovation Banking and HSBC Private Credit”
Additional Reading..
- “Wise Owners Day: Money Without Borders”
- “Visa bids $100 million to replace Mastercard as Apple’s new credit card partner”
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