Mexico FinTech News
Cofece Investigates Retail Stores and Fintechs for Potential Monopolistic Practices
Mexico’s Federal Economic Competition Commission (Cofece) has launched an investigation into retail stores and fintech companies offering financial services, such as loans and banking, for potential monopolistic behavior. This investigation aims to determine if these entities are engaging in practices that limit competition, particularly demanding exclusivity to provide certain services, affecting consumer choice and market fairness.
El Economista, 04/09/24, Edgar Juárez: Cofece investiga a tiendas que ofrecen servicios financieros.
Banco Covalto Achieves Another Credit Rating Upgrade
Banco Covalto has secured its third consecutive upgrade in counterparty risk rating, reflecting robust growth and solid financial performance. The bank’s strategic focus on supporting SMEs with financing has driven its credit portfolio expansion by 193% since 2021. CEO Mark McCoy attributes this progress to the bank’s strong positioning in the market.
Imagen Radio, 09/02/24, Staff: Banco Covalto obtiene por tercera vez mejora en calificación de riesgo de contraparte.
Rappi Strengthens TURBO Operations with Fountain9 Asset Acquisition
Rappi has acquired assets from the Indian firm Fountain9 to enhance its TURBO retail business. By integrating Fountain9’s AI-based supply chain technology, Rappi aims to improve inventory management and operational efficiency, reducing waste and supporting faster growth. Additionally, the acquisition will give Rappi access to a skilled tech workforce in India.
AméricaEconomía, 09/03/24, Staff: Rappi compra activos de Fountain9, compañía india, para acelerar crecimiento.
Nu Mexico Customers Can Now Pay Bills Directly from Their Nu Account
Nu Mexico customers now have the option to pay for services such as electricity, water, and more directly from their Nu account. This new feature allows users to pay for services while their balance grows through Nu’s interest-earning account. The goal is to provide customers with greater financial control and convenience, bringing Nu closer to principality.
Nu Blog, 09/05/24, Staff: Clientes de Nu México ahora pueden pagar servicios desde su cuenta Nu.
Fintech Companies Seek Traditional Banking Licenses
Mexican fintechs like Mercado Pago and Konfío are moving towards traditional banking licenses to enhance their services. Out of 773 existing fintechs in Mexico, and with 213 emerging, some fintechs are shifting from IFPE licenses to banking to offer public deposits and loans. While this strategy provides growth potential, they face higher regulatory demands and operational costs. The transition could result in more partnerships and acquisitions in the evolving Mexican financial sector.
LexLatin, 09/03/24, Ingrid Rojas: De la licencia IFPE a la bancaria.
CoinFlip expande la adopción de criptomonedas en México (beincrypto.com)
LatAm FinTech News
Nubank Expands Rapidly in LatAm Amid Rising Loan Defaults
Nubank’s growth in Latin America continues at a strong pace, especially in Brazil, with a 28% year-over-year increase in its loan portfolio. However, the bank faces rising default rates, with 7% of loans past due by over 90 days, surpassing the industry average of 5.5%. We note that while some analysts are becoming cautious about the impact of these rising delinquencies on Nubank’s financial performance, the market has been more focused on the strong top-line growth, driving the stock to all-time highs (until the sharp sell-off this week).
Bloomberg Línea, 09/05/24, Giovanna Bellotti: Nubank no deja de crecer en LatAm, pero tampoco sus créditos en mora.
Bitso Celebrates 10 Years with Over Eight Million Users
Bitso, a leading Latin American cryptocurrency exchange, marked its 10th anniversary, reporting a sustained growth rate of 15-18% in 2024. The platform now serves over 8 million users. According to Bitso’s CEO in Argentina, Julián Colombo, the adoption of digital dollars (stablecoins) has surged, reflecting Argentina’s demand for dollarized savings.
iProUP, 09/03/24, Pablo Weiss: Bitso cumplió 10 años.
Other news
StartUps.com.br, 09/03/24: Brazilian digital account solutions platform Neon raised $90 million in a Series E round
Latam List, 09/03/24, Sara Delgado: Puntored raises $2M from Stellar Development Foundation
Latam List, 09/03/24, Milena Garbarino: Comun Digital Bank secures $21.5M in Series A funding
Global FinTech News
Drip Capital Picks Up $113M to Provide Working Capital to SMBs
Fintech firm Drip Capital, which provides working capital to small and medium-sized businesses (SMBs), has raised $113 million in a funding round. The company aims to use the funds to expand its global operations and support SMBs in international trade, particularly by streamlining the financing process for cross-border transactions. Drip Capital’s innovative platform offers flexible trade financing solutions tailored to the needs of growing businesses.
TechCrunch, 09/05/24, Jagmeet Singh: Drip Capital picks up $113M to provide working capital to SMBs.
Ryan Breslow’s Lofty $450M Bolt Deal is in Trouble
The $450 million deal to take Bolt private, spearheaded by its founder Ryan Breslow, is reportedly facing complications. Originally expected to close smoothly, internal issues and disagreements have emerged, raising concerns about the transaction’s success. Bolt, which offers checkout technology for online merchants, has been in the spotlight for its rapid rise and controversial leadership style, and this latest hurdle adds to its challenges.
TechCrunch, 09/04/24, Mary Ann Azevedo: Ryan Breslow’s lofty $450M Bolt deal is in trouble.
Venture Firms Take a Break in August
Global venture funding in August 2024 fell to $18 billion, marking the lowest monthly total this year, down 36% from July and 23% year-over-year. North American companies led, raising 66% of the total, while AI-related companies secured $4.3 billion, making AI the top-funded sector. Large rounds included Anduril’s $1.5 billion and Groq’s $640 million but exits remain sluggish as IPO and M&A activity continues to stall.
Crunchbase News, 09/05/24, Gene Teare: Venture Firms Take a Break in August.
Other news
Pitch Book, 09/05/24, Staff: Fido, a digital lender based in Ghana, landed $30 million in a Series B led by BlueOrchard and FMO.
Pitch Book, 09/04/24, Staff: Fintech startup Unlock Technologies raised a $30 million Series B led by D2 Asset Management.
Pitch Book, 09/04/24, Staff: Ziina, a Dubai-based fintech startup, raised $22 million in a Series A led by Altos Ventures.