Mexico Fintech Chatter – May 5, 2025

Mexico FinTech News

Continued challenges for fintech players in March

Nu, Klar and Ualá published their 1Q25 results. As with February financials, there were no major surprises, with portfolio data matching earlier disclosures by Condusef, and steady overall trends. For Nu, most notable was its continued growth in deposits, up an impressive 6% MoM (P$6.3 bn, to P$110 bn), cementing its status as Mexico’s preferred fintech for deposits. On the other hand, higher interest expenses and continued credit quality woes mean the bottom line will stay in the red for the foreseeable future; losses before taxes in the quarter totaled P$878 mn.  For Klar, the profits posted late last year have proven fleeting: there was no respite in March, with operating losses widening to P$59 mn, from P$44 mn in February. The quarterly operating loss amounted to P$123 mn. Lastly, for Ualá, deposits were essentially flat, at P$5.8 bn, while consumer loans grew marginally to a negligible P$344 mn from P$314 mn in February. Operating expenses for the month jumped to P$79 mn, not quite alarming, but still somewhat concerning that the bank is spending more than what its portfolio grows. Losses before taxes for the quarter were P$252 mn. We have no doubt Ualá Mexico does have a strategy to turn around operations, but we cannot work out what it is at this time.

 

Mexican Paytech Clara Raises US$80M to Accelerate Latin American Expansion

Clara, a leading Mexican paytech platform, has raised US$80 million in funding to drive its growth across Latin America, split evenly between equity and debt. The equity round included participation from Citi Ventures, Kaszek Ventures, and debt from General Catalyst. As the company did not provide an updated valuation, this may have ben a down round from the $1bn valuation reached in 2021. Clara provides corporate expense management solutions through smart credit cards and an integrated financial platform for businesses. The new capital will support product development, regional expansion, and the strengthening of Clara’s operational capacity in key markets including Brazil, Colombia, and Mexico.

Latam Fintech, 05/03/25, Staff: Mexican paytech Clara raises $80M to accelerate Latin American expansion

 

Vexi Secures MXN 300 mn Credit to Accelerate Growth in Latin America

Vexi has secured a structured credit line of MXN 300 million from Banco Covalto to expand its lending capacity for Mexico’s emerging middle class and financially excluded users. The facility is backed by Vexi’s own credit portfolio and denominated in pesos, avoiding FX risk. The funds will support user growth, the launch of new products, and tools to improve financial health. The deal signals growing collaboration between traditional banks and impact-driven fintechs in Mexico’s evolving credit ecosystem.

Latam Fintech, 04/30/25, Staff: Vexi raises $15M to accelerate growth in Latin America

 

Supra Raises Undisclosed Funding from Citi to Expand Supply Chain Financing

Mexican fintech Supra has secured an undisclosed investment from Citi to strengthen its supply chain financing platform. The funding will support Supra’s efforts to provide small and medium-sized enterprises (SMEs) in Latin America with greater access to working capital through technology-driven financial solutions. Supra leverages data and automation to streamline B2B payments and reduce liquidity gaps for businesses across various industries.

LatAm List, 04/29/25, Isabelle Lee: Supra raises undisclosed funding from Citi to expand supply chain financing

 

Additional reading…

 

 

LatAm FinTech News

Credicuotas Raises $3.3M Through Bond Issuance to Expand Consumer Lending in Argentina

Argentine fintech Credicuotas has raised $3.3 million through a successful negotiable obligation (bond) issuance aimed at strengthening its consumer lending operations. Specializing in installment-based credit for retail purchases, Credicuotas plans to use the capital to scale its presence in the Argentine market and improve access to financing for underserved populations. The company’s model focuses on partnerships with retail chains to offer in-store credit options, targeting segments with limited access to traditional banking.

Latam Fintech, 05/02/25, Staff: Credicuotas raises $3.3M through bond issuance to expand consumer lending in Argentina

 

Brazilian Fintech Credituz Raises $5M to Finance Property Ownership for Social Minorities

Credituz, a Brazilian digital lending fintech, has raised $5 million to expand its mission of providing real estate financing to historically underserved and socially excluded groups. The funding will be used to strengthen Credituz’s lending capacity, enhance its digital platform, and scale its impact-driven model. Latam Fintech, 05/03/25, Redacción: Brazilian fintech Credituz raises $5M to finance property ownership for social minorities

 

What Will Happen to Nubank if It Can’t Become a Bank in Brazil?

Nubank is facing regulatory challenges in Brazil as it seeks formal approval to operate as a full-fledged financial institution. The Central Bank of Brazil has delayed a decision on Nubank’s application, citing concerns about governance and operational transparency.

Infobae, 05/03/25, Staff: What Will Happen to Nubank if It Can’t Become a Bank in Brazil?

 

Additional Reading…

 

 

Global FinTech News

PowerPay Secures $400M Warehouse Facility to Expand Consumer Lending

PowerPay, a fintech platform specializing in home improvement financing, has secured a $400 million committed multi-lender warehouse facility led by KeyBank. The funding will support PowerPay’s continued expansion in the U.S. consumer lending market, enabling the company to increase loan origination capacity and invest in its proprietary technology platform. PowerPay has seen strong growth by partnering with contractors and merchants to offer embedded financing solutions for homeowners.

Fintech Finance News, 05/01/25, Editorial Team: PowerPay secures $400 million committed multi-lender warehouse facility led by KeyBank

 

Tide Secures $100M Debt Facility from Fasanara to Boost SME Credit Offerings

UK-based fintech Tide has raised a $100 million debt facility from Fasanara Capital to expand its credit solutions for small and medium-sized enterprises (SMEs). The funding will be used to scale Tide’s lending operations, including working capital products, as part of its broader mission to support underserved businesses.

Fintech Finance News, 05/01/25, Editorial Team: Tide secures $100 million debt facility from Fasanara for enhanced credit offerings

 

Klarna Hits 11 Million UK Customers as Revenue Soars 30% in Breakout 2024

Klarna has reached a major milestone with over 11 million customers in the UK, following a 30% surge in annual revenue during 2024. The Swedish buy-now-pay-later (BNPL) giant attributed the growth to expanded partnerships with top-tier UK retailers, a sharp rise in app engagement, and enhanced AI-driven personalization across its platform.

Fintech Finance News, 04/30/25, Editorial Team: Klarna hits 11 million UK customers as UK revenue soars 30% in breakout 2024

 

Additional Reading…

 

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