Miranda’s Weekly Mex FinTech Monitor – September 17, 2024   

Miranda’s Weekly Mex FinTech Monitor – September 17th, 2024   

 

Mexico FinTech News 

 

SoftBank-Backed App Rappi Expects to Be IPO-Ready in 12 Months 

Rappi, one of LatAm’s most valuable startups, expects to be ready to launch an initial public offering in 12 months, co-founder Simon Borrero said in a press conference, with New York as the “likely” jurisdiction. “We will be ready in a year, but we are not in a hurry,” he said. “Now that we are profitable, we are generating cash in order to invest.” The company is still in growth mode, pouring money into Mexico and Brazil. It plans to expand to Central America. This would be the first LatAm fintech IPO since Nubank went public in December 2021. The startup was most recently valued at $5.25 billion, after a Series F of over $500 million led by T. Rowe Price in July 2021. 

Bloomberg, 09/16/24, Patricia Laya: SoftBank-Backed App Rappi Expects to Be IPO-Ready in 12 Months. 

 

Judicial Reform Won’t Affect Mercado Libre’s Investment Plans in Mexico 

Mercado Libre has stated that Mexico’s recent Judicial Reform will not alter its investment plans in the country, which are estimated to reach USD 2.45 billion. The company remains optimistic about the upcoming “Buen Fin” sales event, expecting strong growth in consumer spending. Mercado Libre continues to view Mexico as a strategic market for expansion, despite regulatory changes and plans to maintain its long-term investments in logistics and technology infrastructure. 

El Universal, 09/11/24, Antonio Hernández: Reforma judicial no cambia planes de inversión en México, dice Mercado Libre; espera un potente Buen Fin. 

 

Mexican Fintech Stori Aims to Add 350,000 Clients in Colombia in Its First Year 

Mexican fintech Stori plans to expand its presence in Colombia, targeting 350,000 new clients within its first year of operation. The company, known for offering credit cards to underserved markets, sees Colombia as a strategic opportunity due to its growing fintech sector and increasing demand for credit. Stori’s expansion is part of its broader strategy to establish a foothold in key Latin American markets. 

Bloomberg Línea, 09/09/24, Diana Nava: Mexicana Stori prevé añadir 350,000 clientes en su primer año en Colombia. 

 

Ualá Launches Secured Credit Card in Mexico 

Digital bank Ualá announced the launch of a secured credit card in Mexico. Users can request the card online, making a deposit ranging from 300 to 20,000 pesos, that will be used to guarantee the credit line. Deposited funds will earn 5%. 

DPL News, 09/08/24, Raúl Parra: Ualá va por población no bancarizada en México: lanza tarjeta de crédito garantizada. 

 

LatAm FinTech News  

 

Nubank Ends Trading of Nucoin in Latin America 

Nubank, one of Latin America’s largest fintech companies, has announced they will not continue trading its cryptocurrency, Nucoin. The decision comes after a review of its digital asset strategy, with the company deciding to shift its focus back to other financial products and services.  

Bitcoin.com, 09/05/24, Sergio Goschenko: Latam’s Fintech Giant Nubank Termina el Comercio de Nucoin. 

 

Neon Raises $102M in Series E Funding Round 

Brazilian fintech Neon has raised $102 million in its latest Series E funding round. This capital will be used to further expand its digital banking services and accelerate product development to better serve Brazil’s growing demand for financial inclusion. Neon, already a leader in offering accessible banking services to underserved populations, aims to increase its market presence and develop more innovative solutions in the fintech space. 

LatamList, 09/10/24, Matheus Tomé: Neon Raises $102M Series E Round. 

 

Yumari Connects Latin America with Major D2C Brands 

Yumari, a Latin American platform, has rapidly expanded by onboarding over 100 global Direct-to-Consumer (D2C) brands and now operates in 10 Latin American countries. The company aims to generate over $50 million in annual sales for its partner brands by the end of 2024, with plans to reach more than 5 million consumers across the region. This growth positions Yumari as a key player in connecting Latin American markets with major international brands. 

LatamList, 09/10/24, Eduardo Hernandez: Yumari, la plataforma que conecta a América Latina con las grandes marcas D2C. 

 

Other news  

Cointelegraph, 09/12/24, Katha Jimenez: Bitso named new country head for Brazil 

LatamList, 09/12/24, Milena Garbarino: Colombian fintech Cobre secured $ 35M in Series B funding. 

 

Global FinTech News  

 

Miami-Based AI Bookkeeping Startup Finally Raises $200M in Equity and Debt 

AI-powered bookkeeping startup Finally, based in Miami, has secured $200 million in a new funding round, which includes both equity and debt financing. The company aims to use this capital to enhance its AI technology and expand its service offerings, catering to the growing demand for automated bookkeeping solutions.  

TechCrunch, 09/09/24, Mary Ann Azevedo: Miami-based AI bookkeeping startup Finally has raised another big round: $200M in equity and debt. 

 

The Fintech Landscape of China in 2024 

China’s fintech sector continues to dominate the global landscape in 2024, with payment innovations, wealth management, and blockchain technology. Major players like Ant Group and Tencent maintain their leadership, but regulatory scrutiny remains high, particularly in areas such as data privacy and anti-monopolistic practices. The sector’s growth is also being fueled by China’s increasing focus on expanding its central bank digital currency (CBDC), which is expected to further transform the digital economy.  

The Fintech Times, 09/11/24, Richie Santosdiaz: The Fintech Landscape of China in 2024. 

 

Other news 

TechCrunch, 09/13/24, Anna Heim: Frankfurt-based startup Qualifyze raised a $54 million Series B 

The Fintech Times, 09/11/24, Staff: Paymob Extends Series B to USD $72 Million 

The Fintech Times, 09/09/24, Staff: FlapKap Secures $34M Pre-Series A to Scale SME-Financing Across MENA