Miranda’s Weekly Mex FinTech Monitor
December 4, 2023
Mexico FinTech News
US stock trading app Webull enters Mexico with Flink acquisition
Webull has acquired the Mexican FinTech Flink, including the brokerage house Vifaru Casa de Bolsa, as part of its strategy to expand its digital investment platform globally. Flink, once the darling of the Mexico WealthTech sector, provides commission-free access to ETFs and fractional shares listed on the New York Stock Exchange, but has struggled post-pandemic. The acquisition allows Webull to extend its services in Mexico, where it plans to introduce a broader set of investment products. The integration of Flink’s technology into Webull’s platform is expected in the coming months. Webull, currently operating in various countries, sees the Mexican market as having an untapped demand for technology-based wealth-building solutions and plans to use the acquisition to expand to the rest of the region. The main competitor in Mexico is GBM.
FinTech Futures, 11/30/2023, Tyler Pathe: US stock trading app Webull enters Mexico with Flink acquisition
Mexican FinTech Klu seeks to acquire a Sofipo
Klu, which was recently authorized as an Electronic Payment Funds Institution (IFPE) under the FinTech Law, plans to expand its services by acquiring a Popular Financial Society (Sofipo). The decision comes as the company, which serves over 2,500 corporate accounts and processes over 7 billion pesos per month, aims to enhance its offering. Klu views its authorization as an IFPE as a gateway for expansion and intends to partner with a U.S.-based company for remittance transfers. Alberto Djemal, Klu’s CEO, emphasized a growing demand for credit services, highlighting how a Sofipo license would improve its financing and short-term international transfer services. The IFPE approval process for Klu was one of the longest, taking 1,511 days, in part because it is the only FinTech approved by the Bank of Mexico to conduct foreign currency operations.
El Economista, 11/27/2023, Sebastián Estrada: Tras obtener aval como fintech, Klu buscará ir por una Sofipo
Other news
Tekios, 30/11/23, Staff: Cómo las Fintech están transformando el mercado de remesas en América Latina
El Economista, 27/11/23, Yuridia Torres: Clientes de Santander podrán usar Yastás
El Economista, 30/11/23, Fernando Gutiérrez: Se delineará política pública fintech antes de que finalice el sexenio; cambios vendrán después
LatAm FinTech News
NXTP closes largest fund yet with B2B focus in Latin America
NXTP, a Latin American VC announced that it had secured $98 million in capital commitments for its third fund. The fund will focus on early-stage, business-to-business startups with a ticket size of US $500,000 to US $5 million. In an interview with TechCrunch, Managing Partner Darly Bendo highlighted how there were many more second and third-time founders supporting the growing startup ecosystem, as well as continued positive trends in B2B software and cloud for enterprise and mid-market.
TechCrunch, 11/28/2023, Christine Hall: NXTP closes largest fund with $98M for early-stage B2B founders in Latin America
Cubo closes funding round and expands to Guatemala
El Salvadoran FinTech Cubo has secured US $3.5 million from the -American Development Bank Lab (IDB Lab) to expand to Guatemala and develop digital payment solutions for micro, small, and medium-sized enterprises in Central America. Cubo’s payment platform processes card transactions offering point-of-sale systems, payment links, and QR codes. The FinTech, which connects with over 10,000 businesses in Central America, aims to achieve regional financial and technological inclusion, with a strong focus on women-owned businesses. Cubo has grown 45% MoM, also officially launched operations in Guatemala, aiming to drive digital payment adoption among local businesses.
Contxto, 11/27/2023, Eduardo Vega: Cubo raises USD$3.5 million round and arrives in Guatemala
Other news
Contxto, 12/01/2023, Eduardo Vega: Globant buys creative agency GUT to boost its expansion
FinTech Nexus, 12/01/2023, David Feliba: LatAm neobanks show promising signs, soaring profits in Q3
Global FinTech News
Berkshire Hathaway sells stake in India’s Paytm at a loss
Warren Buffet’s holding company has decided to sell its stake in the parent company of Paytm, a leading payments platform, for around 40% of its total investment. Berkshire Hathaway’s sale comes after the Ant Group and Softbank also chose to divest from the company. Paytm represented the holding company’s first investment in India. However, it appears the group had a change of heart after Paytm’s IPO in 2021 and the stock prices’ dramatic decline thereafter. That said, in its latest earnings call, the company highlighted that profitability had improved with 2Q24 revenue up 32% YoY.
FinTech Futures, 11/27/2023, Shruti Khairnar: Berkshire Hathaway sells stake in India’s Paytm for $165m
SoFi exits crypto amid increased regulatory scrutiny
SoFi Technologies is exiting the cryptocurrency sector amid increased regulatory scrutiny of lenders’ involvement in digital assets. The San Francisco-based company, which expanded into various financial services since its start as a student-lending refinancing firm 12 years ago, received a bank charter in January 2022, although some restrictions were placed on its crypto business. SoFi informed customers they must liquidate their crypto accounts or transfer to Blockchain.com by December 19. SoFi, a high-profile participant in the crypto sector since 2019, will no longer allow new crypto accounts.
Bloomberg, 11/29/2023, Olga Kharif: SoFi Is Exiting Crypto With Banking Regulators Stepping Up Scrutiny HYPERLINK “https://www.fintechfutures.com/2023/11/commerzbank-becomes-first-german-bank-to-receive-crypto-custody-licence/”
Nucleus Commercial Finance secures £200m funding facility from NatWest
Nucleus has secured a new funding facility, bringing its total lending capacity to £900 million. This enables the UK-based firm to support over 2,000 small and medium-sized businesses through its unsecured loan product, Nucleus Business Loan. The AI-led automated underwriting system allows SMEs to access up to £2 million, with loan decisions made in minutes. Nucleus CEO Chirag Shah emphasized the company’s streamlined lending process, stating that 96% of decisions are made in under one minute, providing fast and accessible finance options for SME growth.
Fintech Futures, 11/30/2023, Shruti Khairnar: Nucleus Commercial Finance secures £200m funding facility from NatWest
Other news
Fintech Futures, 11/28/2023, Shruti Khairnar: India’s PhonePe reportedly planning to launch consumer lending in January 2024
Fintech Futures, 11/30/2023, Shruti Khairnar: US fintech start-up CapitalOS emerges from stealth with $39m in equity and debt financing
Bloomberg, 11/29/2023, Loni Prinsloo: Prosus-Backed PayU’s India Unit Seeks IPO Within Next 12 Months TechCrunch, 11/30/2023, Mary Ann Azevedo: Yieldstreet to acquire real estate investment platform Cadre
IBS Intelligence, 11/29/2023, Gloria Methri: Paysend raises $65m in latest funding round led by Mastercard
N26, 11/28/2023, Staff: N26 Group Shares Profitability Expectations and Announces Upcoming Trading Product
Bloomberg, 11/30/2023, Anna Irrera and Aisha S. Gani: Robinhood (HOOD) Launches Stock Trading App in UK Marking International Debut – Bloomberg