Miranda’s Weekly Mex FinTech Monitor – August 5, 2024
Mexico FinTech News
Aviva raises $5.5mn in seed funding
Aviva, a Mexican fintech, raised $5.5 million in seed funding to expand its presence to over 50 cities in Mexico and diversify its product offerings. The funding round included investors such as Krealo, Ignia Partners, and 500 Global. Aviva aims to achieve profitability by 2025 and will use the funds to introduce a credit card and form more retail partnerships. The company provides loans to individuals and small businesses, primarily in informal economies, using innovative technology for loan processing
Bloomberg En Linea: Fintech mexicana Aviva recauda US$5,5 millones y fija meta de rentabilidad (bloomberglinea.com)
Latam FinTech Hub, 08/01/2024, Staff: FinTech Aviva anuncia una ronda de capital de US$5.5M para impulsar su expansión en México
Mercado Libre goes from strength to strength
Meli’s stock soared Friday 10% in a falling market, as 2Q24 earnings blew through expectations. Net income more than doubled YoY, exceeding consensus expectations by 30%, sales grew 40%+, while EBIT reached $726 million, surpassing the consensus forecast of $679 million. GMV growth was broad-based, with Brazil at +36% YoY, Mexico at +30%, and Argentina at +8% YoY item growth. FInTech in Mexico continued to gain customers, driven by merchandise sales. Mx Credit portfolio reached $1.5bn (30% of total credit book) nearly double Nu Mexico’s. In the conference call, the company mentioned the Mexico bank license may be two years away, even though the company says meanwhile it is well equipped to compete. Despite investors expressing concerns about recent increase in interest rates on deposit accounts, the company argued the strong adoption of revenue-generating products shows that account holders are not just parking money. Mercado Pago has driven significant efficiencies, with many transactions using stored balances.
MELI Q2’24 Earnings Presentation (mercadolibre.com)
Mercado Pago alcanza 52 millones de usuarios en Brasil, Argentina y México (eleconomista.com.mx)
Rappi says “no” to FinTech Law; CNBV asks for exit plan
Rappi has expressed opposition to Mexico’s new FinTech Law, which aims to regulate financial technology companies. Rappi, a major player in the FinTech space, is concerned that the law could negatively impact its operations. The National Banking and Securities Commission (CNBV) has asked Rappi to submit a compliance plan or face potential penalties. Rappi argues that the law’s measures might be too restrictive and could hinder its business model and growth in Mexico.
El Economista, 08/01/2024, Sebastián Estrada: Rappi dice “no” a la Ley FinTech; CNBV le pide plan de salida
Nu temporarily suspended interbank transfers as losses continue
In an embarrassing IT failure, Nu announced a temporary and brief suspension of interbank transfers due to technical issues with its payment processing system. This disruption affectected users who need to transfer funds between different banks. Meanwhile Nu Mexico reported further heavy losses in April of MXP161mn, versus MXP171mn loss in March, affected by its high interest rate of 14.25% on deposits, and high write-offs on credit portfolio. Nu’s efficient ratio remains above 100%, and credit portfolio MoM growth at 2.5% in April, remains far below deposit growth of 18% MoM, suggesting numbers will remain in the red for some time yet.
Milenio, 08/01/2024, Áxel Martinez: ¿No ha caído la quincena? Nu suspende transferencias interbancarias de forma temporal
Other news
Latam FinTech Hub, 07/31/2024, Staff: FinTech mexicana de créditos educativos Crediko, recaudó US$2.5M para transformar su modelo de negocio en el ciclo escolar 2024-2025
LatAm FinTech News
Global66 launches a groundbreaking feature in Latin America, offering global accounts with IBAN and routing numbers in both USD and EUR
Global66 has introduced a new feature in Latin America, allowing users to open global accounts with IBAN and routing numbers in both U.S. dollars and euros. This service, a first in the region, enables easier cross-border transactions, making it simpler for customers to manage their finances internationally.
Latam FinTech Hub, 08/02/2024, Staff: Global66 lanza funcionalidad pionera en LATAM con cuentas globales con IBAN y routing number en dólares y euros
Google Pay launches Pix payments in Brazil through a partnership with FinTechs C6 Bank and PicPay
Google Pay has expanded its services in Brazil by integrating Pix payments, in collaboration with FinTechs C6 Bank and PicPay. This new feature allows users to make instant payments directly through the Google Pay app, leveraging Pix, a popular and widely used payment system in Brazil. The partnership with C6 Bank and PicPay, two prominent Brazilian FinTechs, is aimed at enhancing the app’s functionality and convenience for Brazilian users. This move strengthens Google Pay’s position in a key market by incorporating a locally preferred payment method.
Latam FinTech Hub, 07/30/2024, Staff: Google Pay lanza pagos con Pix en alianza con las FinTechs C6 Bank y PicPay en Brasil
Other news
Latam FinTech Hub, 07/29/2024, Staff: FinTechs Inswitch y Nequi se alían para atender las necesidades financieras de los salvadoreños no bancarizados
Global FinTech News
Stripe buys US paytech start-up Lemon Squeezy
Stripe has acquired U.S. paytech start-up Lemon Squeezy, a company specializing in helping digital content creators manage payments, taxes, and subscriptions. This acquisition aligns with Stripe’s strategy to expand its offerings for small businesses and content creators. Lemon Squeezy’s platform simplifies the process of selling digital products online, and its integration into Stripe’s ecosystem will likely enhance Stripe’s capabilities in serving this growing market segment.
FinTech Futures, 07/30/2024, Tyler Pathe: Stripe buys US paytech start-up Lemon Squeezy
US FinTech GeoWealth bags $18m investment led by BlackRock
GeoWealth, a U.S. FinTech firm, secured an $18 million investment led by BlackRock. The funding will help GeoWealth expand its platform, which provides wealth management solutions, including portfolio management and reporting, to financial advisors. This investment reflects BlackRock’s interest in supporting innovative FinTech solutions in the wealth management industry.
FinTech Futures, 07/30/2024, Cameron Emanuel-Burns: US FinTech GeoWealth bags $18m investment led by BlackRock
Other news
FinTech Futures, 07/30/2024, Tyler Pathe: NatWest to acquire £2.5bn in prime UK residential mortgages from Metro Bank
FinTech Futures, 07/30/2024, Cameron Emanuel-Burns: Mississippi’s Renasant Corporation to buy The First Bancshares in $1.2bn all-stock deal