Mexico FinTech News
Nu Receives First Authorization to Become a Bank in Mexico
Nu México, the local arm of Brazilian fintech giant Nubank, has received the authorization to incorporate as a bank from regulator CNBV, the first of two steps to become a fully licensed bank in the country. The second and final step—the approval to start operations—is expected within 180 days, though it could take over a year. Currently operating as a Sofipo, Nu primarily serves low-income individuals who haven’t had a credit card before; it reached 10mn customers in Mexico over the past five years. A full banking license will allow Nu to offer a wider array of products and services, including perhaps most notable payroll accounts and payroll loans, which could allow it to reduce its cost of risk and eventually reach profitability, which so far has eluded it in the country. But a full bank license is no panacea. It also involves added costs, and reduces flexibility and speed. Ualá had its bank license via the purchase of ABC bank approved in late 2021, and has yet to gain much traction in Mexico.
Expansión, 04/15/25, Staff: Nu receives first authorization to become a bank in Mexico Other Sources; Reforma, El Financiero, El Economista
Banorte to Acquire Full Ownership of RappiCard for US $50mn
Grupo Financiero Banorte announced an agreement to acquire the remaining 44.28% of Tarjetas del Futuro, the joint venture behind RappiCard, for US $50mn, gaining full ownership of the business. The transaction is part of Banorte’s strategy to enhance profitability through cross-selling and hyper-personalization. The deal includes a 15-year exclusive agreement allowing Banorte to offer financial services within Rappi’s ecosystem. As of 2024, RappiCard had issued 1.1mn cards and held a portfolio of MXN 5.64bn. The acquisition follows Rappi’s decision to exit fintech operations in Mexico, including the shutdown of RappiPay. Banorte has not yet announced its plans for Bineo, its fully-digital bank that’s set to be restructured; we would expect the company to fold its digital efforts into its legacy bank, following the same strategy as BBVA. More details are expected when Banorte reports 1Q25 results later this week.
Bloomberg Línea, 04/15/25, Michelle del Campo & Italia López: Banorte acquires full ownership of RappiCard for US $50mn
Kavak Sees its Valuation Plunge in US$127 mn Down Rund
Online used-car dealer Kavak raised US$127 mn in a down round that cut its valuation to a still impressive US$2.2 bn, from the US$8.7 bn set in September 2021. The new funds allowed the company to tap US$200 million in debt facilities from Goldman Sachs and HSBC, which will be used to boost its financing arm, Kuna. While still loss-making, the company is “on a clear path to hit profitability in all the markets in 2025 and hopefully by the end of the year as a whole”, according to CEO Carlos García.
Bloomberg, 04/15/25, Michael O’Boyle: Kavak Valuation Slashed by $6.5 Billion After $127 Million Raise
Belvo Secures US $15mn to Expand Open Finance and AI Capabilities in Latin America
Belvo, a leading Open Finance platform in Latin America, has raised US $15mn in a new funding round led by Quona Capital, with participation from existing investors including Kaszek, Kibo Ventures, Future Positive, Citi Ventures, and Y Combinator. The funds will support the expansion of Belvo’s Open Finance products across data and payments and bolster its AI capabilities to deliver more inclusive and personalized financial tools. Belvo’s platform powers over 150 clients—including BBVA, Banamex, Bradesco, Santander, Mercado Libre, and Creditas—and currently processes nearly 2mn transactions monthly, with an annualized TPV exceeding US $500mn.
FF News, 04/18/25, Staff: Belvo secures US $15mn in new round of funding to expand open finance access and innovation across Latin America
Onfly Expands to Mexico
Onfly, a Brazilian corporate travel and expense management platform, announced on April 15, 2025, it raised $40 million in a Series B round led by Tidemark, with participation from Endeavor Catalyst and Left Lane Capital. Expansion into Mexico: Onfly aims to onboard 2,500 clients in Mexico by 2027, expanding in Latin America’s second-largest corporate travel market. Services: It offers an integrated platform for travel booking, expense tracking, and policy compliance to streamline corporate travel across Latin America. Use of funds: The new capital will be used to accelerate product development and expand operations in Mexico and the region.
PYMNTS, 04/16/25, Staff: Onfly Raises $40 Million for Travel and Expense Management Platform
Additional reading…
- Venture capital in Mexico grew 65.8% in Q1 2025
- Nufi raises US $1.5mn seed round led by Magma Partners and GPCompas
- Finsus launches new debit card and app aimed at greater financial inclusion among baseball fans
LatAm FinTech News
Oak HC/FT Leads US $48mn Series A Extension in Latin American Fintech Toku
Toku, a payment management fintech operating in Mexico, Brazil, and Chile, has secured a US $48mn extension to its Series A funding round, led by venture capital firm Oak HC/FT. The investment will be used to reinforce Toku’s go-to-market strategy and accelerate product development. The company’s software connects enterprise resource planning (ERP) systems with banks and payment methods, serving clients such as Chevrolet, Santander, Mapfre, Liverpool, and MetLife. This marks Oak HC/FT’s fourth fintech investment in Latin America over the past three years.
Bloomberg Línea, 04/17/25, Michelle del Campo: Oak HC/FT leads US $48mn Series A extension in Latin American fintech Toku
Nubank Launches Recomeço, its largest debt renegotiation campaign
Nubank is launching Recomeço (“Fresh Start” in English), its largest campaign to date to help customers with overdue payments in Brazil renegotiate their debts. Eligible customers will gradually receive a notification in the Nubank app containing personalized details about their renegotiation options and next steps, and will receive discounts of up to 99.9% for a limited time. The goal is to support those who don’t usually have recurring debts and have a positive history with Nu but who may have faced financial difficulties. Eligible customers might also recover access to the card in the secured or credit version.
Company press release, 04/14/25: Nubank launches ‘Recomeço’, its largest debt renegotiation campaign reaching more than 6 million customers
Additional Reading..
- Mercado Pago launches its new stablecoin Meli Dólar to help Chilean users save and invest
- Altis raises US $2.6mn in equity and debt
Global FinTech News
Startup Funding Hits US $91.5bn in Q1, but 2025 Outlook Remains Bleak
Startup funding in the U.S. reached US $91.5bn in Q1 2025, up 18.5% from the previous quarter and marking the second-highest quarterly total in a decade, according to PitchBook. However, nearly US $40bn of that was raised by OpenAI, while just nine other companies—including Anthropic (US $3.5bn) and Isomorphic Labs (US $600mn)—secured rounds over US $500mn. This signals a concentration of capital among a few giants, while the broader ecosystem faces a tough climate. With limited IPOs, M&A slowdowns, and macroeconomic pressures, analysts warn of potential down rounds, distressed sales, or startup closures ahead.
TechCrunch, 04/16/25, Rebecca Szkutak: Startup funding hit records in Q1, but the outlook for 2025 is still awful
Luma Financial Technologies Raises US $63mn in Series C Funding
Luma Financial Technologies, a platform offering structured products and insurance solutions, has closed a US $63mn Series C financing round led by Sixth Street Growth, with participation from Bank of America, Morgan Stanley, UBS, and TD Bank Group. Founded in 2018, Luma provides a buy-side technology platform that assists financial teams in efficiently learning about, researching, purchasing, and managing alternative investments and annuities. The company also plans to expand its offerings to include life insurance solutions in the future.
Crunchbase, 04/16/25, Staff: Luma Financial Technologies raises $63 million.
Additional Reading…
- UK fintech Marshmallow secures US $90mn in funding at a valuation of US $2bn
- Visa invests in African fintech Konnect and PayTic following GITEX Africa 2025
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