Mexico FinTech News
Learnings from 2Q Earnings: Are markets losing patience with Tech side bets of consumer giants?
Both FEMSA and Walmex saw steep stock declines following disappointing 2Q25 earnings — down as much as 8% and 11%, respectively, capping a year of underperformance. While a tough consumer environment played the major part in this, investors may also be losing patience with costly, so far unprofitable side tech ventures that are pressuring margins: Walmex’s MVNO Bait, Cashi, Health moves and FEMSA’s fintech platform Spin.
Walmex even replaced its CEO — officially for personal reasons — suggesting a possible change in strategy. After just 18 months in the role, Ignacio Caride, who was brought in to push digital and financial services, is unceremoniously out. The interim CEO, Christian Barrientos, a veteran of Bodega Aurrera and CEO of Walmart in Chile, may signal a potential pivot back to core retail.
Meanwhile, FEMSA continues to invest heavily in its digital offering Spin — which has now reached 14.5 million users and is starting to offer loans — but profitability remains elusive. Spin’s annual cash burn is estimated at MXN 2 bn, and analysts expect this to increase as the company expands from payments to credit, and seeks to replicate its dominance in physical payments in the digital world. But competition is much fiercer in digital, and margin correspondingly lower.
Similar conclusions could be drawn looking at the 2Q25 figures released by fintech players last week.
Source: Miranda Partners, Company data, CNBV. Figures in MXN mn.
For Nubank, lower yields on deposits helped results, though losses still rebounded 34% from May to June, due to higher provisions. Lowering yields further (following Banxico’s own rate cuts) should continue to help results, but credit quality remains a concern. Simply put, even if deposits were to fall, Nu would still have too much money it can’t reliably put to work. The bank license should help in that regard, but that could take up to a year, and increase costs further.
As for Stori and Klar, June saw similar trends as May, with steady losses as the NPL ratios continue to creep higher. On the positive side, both reported positive Risk-Adjusted Financial Margin, unlike Nubank, underscoring the need for the Brazilian giant to rationalize its yields further.
DiDi Loans Surpasses 20M Loans Issued in Mexico
DiDi’s financial division announced that its lending platform has issued over 20M loans in Mexico, consolidating its position as a tool for users seeking emergency funds, education financing, or entrepreneurship capital. The platform expanded credit lines up to MXN $46,800 (~US$2,500) for certain users; according to the company, 24% of clients use the fund for educational expenses. A new free membership program rewards responsible borrowers with larger limits, flexible payment dates, and priority service. DiDi’s financial ecosystem now includes DiDi Cuenta, offering a 15% annual interest rate, following its 2024 acquisition of JP Sofiexpress.
El Economista, 29/07/25, Sebastian Estrada: DiDi Loans Surpasses 20M Loans Issued in Mexico.
FinUp Plans Expansion to Mexico and Brazil
Colombian fintech FinUp, focused on debt settlement, plans to expand to Mexico, Brazil, the U.S., and Europe. The company projects managing over COP$50,000 mn (~US$12 mn) in debt in 2025 and reaching 1,000 new users this year. Its model negotiates directly with creditors, achieving discounts of up to 100% on interest and 60% on principal without requiring new loans. FinUp’s goal is to position itself as the leading platform for debt liquidation and financial reintegration, supported by a growing market for inclusive credit solutions and fintech-driven collections.
Bloomberg Línea, 27/07/25, María C. Suárez: FinUp plans expansion to Mexico and Brazil.
Additional reading…
LatAm FinTech News
Neon Raises US$129mn Series E Extension to Scale Sustainable Growth in Brazil
Brazilian fintech Neon secured a US$129mn Series E extension with new backing from the International Finance Corporation (IFC) and DEG (KfW Group), alongside existing investors BBVA and General Atlantic. Founded in 2016, Neon provides digital banking services—including current accounts, credit cards, personal loans, and investments—targeted at middle- and low-income segments. The funds will be used to expand operations, enhance Pix payment capabilities, integrate open finance frameworks, and apply AI to streamline processes. In 2024, Neon grew revenues by 50% and achieved profitability, with a credit portfolio exceeding BRL 6bn (~US$1.1 bn).
Latam Fintech Hub, 30/07/25, Staff: Neon raises US$129mn to scale sustainable growth in Brazil .
QI Tech Secures US$63mn Series B Extension to Strengthen Brazil Operations
Brazil-based fintech QI Tech raised US$63mn in a Series B extension led by General Atlantic, with continued support from Across Capital, its fourth investment in the company. This follows a US$200mn Series B in 2023. Founded in 2018, QI Tech offers a full-stack financial infrastructure platform covering core banking, payments, lending, investments, and insurance, all delivered via APIs and supported by regulatory licenses. The company, Brazil’s largest FIDC custodian, manages US$17bn in assets under custody and US$25bn in assets under management. It has also issued US$27mn in insurance premiums in just six months through its new insurance-as-a-service platform.
FinTech Global, 01/08/25, Staff: Brazil FinTech QI Tech lands US$63mn in Series B extension.
Juvo Raises US$25mn FIDC to Expand Credit Access in Brazil
Brazilian microcredit fintech Juvo raised US$11.5mn in equity and US$25mn through an FIDC, led and coordinated by SRM. The company uses AI and proprietary technology to create credit scores for underserved populations, particularly classes C and D, often excluded by traditional banks. Juvo offers loans up to R$4,500 (~US$800) at below-market rates and partners with telecom providers to deliver mobile credit advances to over 100,000 users daily. The funds will be used to grow loan offerings and extend financial services to more than 20 million current users.
LatamList, 31/07/25, Araceli Dominguez: Juvo raises US$25mn FIDC to expand access to credit in Brazil.
BitGo Opens Brazil subsidiary
BitGo has officially launched a new subsidiary in Brazil—BitGo Brasil Tecnologia Ltda.—as part of its international expansion strategy. This move is aimed at supporting financial institutions in Brazil through secure digital asset custody and treasury solutions. The company’s expansion responds to evolving Brazilian regulations that are likely to require the local management of cryptographic keys and is designed to align with the country’s increasing compliance requirements for virtual asset services. BitGo’s new Brazilian subsidiary will provide insured cold storage, automated treasury workflows, audit-ready APIs, and technical support for banks, brokerages, and asset managers
The Paypers, 29/07/25, Dragos Cernescu: BitGo sets up Brazilian unit for crypto custody services.
Additional reading…
- Brazil’s PIX Becomes a Symbol of Defiance as Trump Targets Instant-Pay System.
- Bancolombia partners with Frisby and Mercado Libre for debit card benefits.
Global FinTech News
JPMorgan Flags Excessive API Calls from Fintech Middlemen like Plaid
JPMorgan Chase reports that fintech intermediaries connecting financial apps with checking accounts are overloading its systems with unnecessary data requests. In June alone, 1.89 billion API calls were logged, but only 13% were customer-initiated transactions. The rest were largely for product improvements, fraud prevention, or data harvesting. JPMorgan is considering charging middlemen for access, a move that could impose annual fees of up to US$ 300 mn on major players like Plaid. The bank links aggregator activity to rising fraud claims, noting ACH transactions routed through these intermediaries are 69% more likely to result in fraud. Plaid disputes the characterization, arguing that authorized background data pulls are standard industry practice to provide timely alerts.
CNBC, 28/07/25, Hugh Son: JPMorgan says fintech middlemen like Plaid are ‘massively taxing’ its systems with unnecessary pings.
Santander Eyes Major Expansion in the US, Aiming to Double Assets in Two Years
Banco Santander is preparing a significant expansion in the US, with plans to double its assets in the country from around US$100bn in 2024 over the next two years. The move seeks to secure Tier III status with the Federal Reserve, supported by the strong growth of Openbank. The US has become a strategic focus for the bank under chair Ana Botín.
El País, 29/07/25, Álvaro Bayón: Santander studies major leap in the US and aims to double assets in two years.
Ramp Secures US$500mn for US$22.5bn valuation to Expand AI Finance Automation
Expense management platform Ramp has raised US$500mn in fresh capital, bringing its valuation to US$22.5bn. The funding will accelerate the company’s expansion of AI-driven finance automation tools, aimed at optimizing corporate expense management and payment processes. This raise comes just six weeks after its previous capital injection, underscoring strong investor confidence in its growth trajectory.
FinTech Magazine, 01/08/25, Louis Thompsett: How Ramp Secured US$500mn to Advance AI Finance Automation.
Additional reading…
- What founders should think about if looking to raise a Series C.
- UK firms face fraud risks amid lax due diligence and compliance gaps.
- Bitzero secures US$25mn to accelerate blockchain mining with next-gen mining deployment.
- Worldline announces the contemplated strategic divestment.
- SEC Chairman speech: American Leadership in the Digital Finance Revolution.
- PayPal Drives Crypto Payments into the Mainstream, Reducing Costs and Expanding Global Commerce.
Download PDF: MI-MexicoFintechChatter-080425