Miranda’s Weekly Mex FinTech Monitor
January 22, 2024
Mexico FinTech News
Rappi appears to adjust its Mexico FinTech Strategy
Rappi, the on-demand delivery startup, appears to have downsized its Mexico FinTech ambitions, although the company itself denies this on social media posts (without providing details). Last week Banorte announced that it was fully controlling and thus consolidating the JV in credit cards (RappiCard) with Rappi, suggesting Rappi now has a minority interest and/or its role will be focused more on customer acquisition, co-branding and related economic benefits. Previously Rappi had announced the closure of RappiCuenta, its virtual savings account, from February 11th. The company also said Teresa Gutierrez was stepping down as Country Manager after only about a year, to be replaced by Ivan Cadavid, former VP of Restaurants, and company veteran of nearly five years.
Contxto, 01/17/2024, Staff: Iván Cadavid Silva Appointed CEO of Rappi México
Nubank sees strong deposit growth, low credit growth, integrates Dimo into its app in Mexico
Nu México, a subsidiary of Nubank, reported strong deposit growth in November following the rise in rates to savers of 15%, nearly tripling its deposits to MXN $8.8 bn from MXN $3.1 bn in October. Meanwhile its credit portfolio barely expanded, showing that high non-performing loans are making it more cautious. Nu also announced it has integrated its app with Dimo, a platform managed by Banxico for cellphone-based money transfers.
El Economista, 01/15/2024, Edgar Juárez: Nu México integra Dimo a su app; usuarios podrán transferir dinero sólo con el número de celular
Klar seeks to grow from 3mn to 4mn active customers in 2024 as raises rate up to 17%
Klar continued the FinTech war for depositors by raising rates up to 17% (subject to certain conditions), and announcing that it was hoping to gain another 1mn customers in 2024 to 4mn in total. In November its credit portfolio grew by over 50%.
Banorte rolling out Bineo January 29
Banorte said in its 4Q23 call that Bineo will be officially launched on January 29. The key question will be what interest rate will savers be offered, given that Klar now offers up to 17%, Nu and Uala 15% and (for certain accounts) hey, banco 13%. Without an attractive interest rate, what will be its key value proposition to customers?
FinTech R2 seals alliance with payment company TUU to continue delivering loans to SMEs in Latam
Multinational FinTech R2 is expanding its SME lending operations, strengthening its partnership with Chilean payment processor TUU. TUU, operational since 2021, has over 15,000 clients. R2, founded in 2020, operates in Mexico, Colombia, and Chile, offering SME financing solutions. The collaboration aims to provide over 2,600 SME loans totaling $16 billion, with $4.4 billion already delivered in 2023. Loans range from $500,000 to $13 million, granted based on transactional behavior. Repayment is through a percentage-based deduction from monthly sales, resulting in a 20-30% sales increase for businesses that availed loans in 2023.
Latam Fintech Hub, 01/16/2024, Vicente Vera Vasquez: Fintech R2 seals alliance with payment company TUU to continue delivering loans to SMEs in Latam
Other news
Latam Fintech Hub, 01/18/2024, Staff: Neosofipo Finsus lanza Sin Fronteras, su Tarjeta de Débito Mastercard en México
Contxto, 01/19/2024, Staff: Asofom Advances Regulatory Update for Sofomes in Mexico
LatAm FinTech News
LatAm FinTech Pomelo secures $40m Series B led by Kaszek
Argentinian FinTech Pomelo has secured $68 million in a funding round led by Kaszek, with participation from investors like Monashees and Index Ventures. This brings Pomelo’s total funding to $103 million. The startup, founded in Buenos Aires in 2021, offers payment technology enabling FinTechs to launch global virtual accounts and card programs cost-effectively. The funds will be used to invest in technology and expand market presence, targeting a business size doubling in 2024. Pomelo achieved a sevenfold increase in daily processing capacity, reaching 55 million transactions by end-2023, supported by alliances with Visa and Mastercard and a Payment Institution license from the Central Bank of Brazil.
Fintech Futures, 01/19/2024, Tyler Pathe: LatAm fintech Pomelo secures $40m Series B led by Kaszek
Ebury Launches Operations in Brazil with Ebury Bank
FinTech Ebury has launched Ebury Bank in Brazil following the acquisition of Bexs Banco and Bexs Pays. Operating with a local banking license, Ebury Bank will primarily focus on providing foreign exchange services, including facilitating direct currency transactions between the Brazilian real and Chinese yuan. This expansion aligns with Ebury’s growth strategy, emphasizing Brazil’s significance in integrating local businesses into international trade. Ebury recently entered Africa by acquiring Prime Financial Markets in South Africa. The company, founded in London in 2009, has over 24,000 clients globally and employs over 650 staff across multiple countries.
Conxto, 01/18/2024, Staff: Ebury Launches Operations in Brazil with Ebury Bank
Other news
Latam Fintech Hub, 01/17/2024, Marystela Barbosa: Fintech mexicana Palenca se expande para democratizar el acceso al crédito en Latam
Contxto, 01/17/2024, Staff: Traemelo Beta E-commerce and Delivery Service Debuts in Lima
Global FinTech News
Kasdaq listed on Nasdaq with $17.5bn valuation
Kasakstan-based Kaspi.kz operates through three segments – payments, marketplace and fintech – and caters to both consumers and merchants. Besides e-commerce purchases, its app lets customers access buy now, pay later (BNPL) debt, renew their driving licenses and register their businesses, reports Reuters. It may be the most profitable Fintech in the world, expected to earn nearly US$2bn this year in a country of only 20mn people.
US private equity firm WCAS buys majority stake in EquiLend
Private equity firm Welsh, Carson, Anderson & Stowe (WCAS) is set to acquire FinTech EquiLend. The deal, expected to close in Q2 2024 pending regulatory approval, comes with an undisclosed financial arrangement. Concurrently, WCAS plans to invest an additional $200 million to support EquiLend’s organic growth and acquisitions. EquiLend, founded in 2001, offers securities finance solutions, including trading, post-trade, analytics, and regtech services. The firm operates the multi-asset class trading platform Next Generation Trading and executes approximately $2.4 trillion in transactions monthly for nearly 200 clients.
Fintech Futures, 01/19/2024, Tyler Pathe: US private equity firm WCAS buys majority stake in EquiLend
Digital asset firm HashKey bags $100m Series A funding at unicorn valuation
HashKey Group, a Hong Kong-based blockchain and digital assets company, has successfully raised an undisclosed amount in its latest funding round. The round saw participation from both new and existing investors, including lead investor OKX Ventures, according to Bloomberg. HashKey Group, founded in 2018, operates HashKey Exchange, a licensed digital asset exchange regulated by the Hong Kong SFC, and HashKey Capital, a global asset manager focused on blockchain technology. The company plans to use the fresh capital to strengthen its Web3 ecosystem, diversify product offerings in its licensed Hong Kong business, and expand globally. Last year, HashKey’s virtual asset exchange app in Hong Kong attracted over 155,000 registered users within four months of its launch.
Fintech Futures, 01/16/2024, Shruti Khairnar: Digital asset firm HashKey bags $100m Series A funding at unicorn valuation
Other news
Fintech Futures, 01/18/2024, Tyler Pathe: India’s DMI Group snaps up BNPL fintech ZestMoney
Fintech Futures, 01/19/2024, Tyler Pathe: Business spend management platform Payhawk lands UK EMI licence