Miranda’s Weekly Mex FinTech Monitor


Mexico FinTech News

Mexican microlending start-up Baubap secures $120m in debt financing

Baubap (YC S21) | LinkedInBaubap, a FinTech based in Mexico City, will use a $120 million debt financing to expand its credit lending activities, focusing on underserved borrowers overlooked by traditional lenders. Through its app-based service, Baubap offers consumer microloans of up to MXN 5,000 ($300) within 15 minutes, leveraging alternative data sources. With half a million active loans monthly, Baubap aims to attract 1.4 million new customers this year. This funding adds to the $20 million debt financing from Park Cities Asset Management in November 2022 and $3 million seed funding from Grupo Grameen in March 2021.


Ride-share app inDrive launches loan, credit card offering for drivers in Mexico Ride-Share App Indrive Launches Loan, Credit Card Offering for Drivers in Mexico - English Version - Periódico Digital Centroamericano y del Caribe

Ride-share app InDrive has introduced a loan credit card program for drivers in Mexico, aiming to provide them with financial assistance. This initiative offers drivers access to credit cards that can be used for personal expenses, vehicle maintenance, and fuel costs. The program seeks to address financial challenges faced by gig economy workers and enhance their financial stability.


Nubank Mexico to offer Cash In/Cash Out partnerships soon?

Nubank applies for a banking license in Mexico 🇲🇽Nubank’s CFO told a Brazilian brokerage house that it aims to announce soon partnerships in CashIn / CashOut in Mexico, thus seeking to overcome what is its single biggest limitation from a customer perspective. Apparently the partnerships will involve revenue sharing, whatever that exactly means. It remains to be seen if customers will be charged for depositing cash in their accounts, which is free in incumbent banks. About 85% of transactions in Mexico are executed in cash, and instant transfers CoDi/DiMO have so far failed to take off. While Nu’s offer of a 15% yield has attracted over USD$1bn of deposits, this will now be costing the company money as the SOFIPO’s fast growing deposit balance likely exceeds its slower growing credit card balance, meaning it will re re-invesitng the excess money at a lower 11.25%, the offficial interest rate.


Mexican fintech Ziff acquired digital lending company Arrenda 

This acquisition aims to place over MXN $1 billion in liquidity in the next three years. Arrenda’s CEO will join Ziff as CTO, enhancing the financial platform and expanding across Mexico. This partnership is expected to transform the SME financing sector by combining Ziff’s industry experience with Arrenda’s cutting-edge technology.


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LatAm FinTech News

FinTech PagHiper receives approval from the Central Bank of Brazil to operate as a Payment Institution (PI) PIX no Boleto Bancário PagHiper – Central de Atendimento PAGHIPER

FinTech PagHiper has been granted approval by the Central Bank of Brazil to operate as a Payment Institution in the country. This authorization allows PagHiper to expand its services and offerings, enhancing its presence in the Brazilian FinTech market.


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Global FinTech News 

Klarna in Talks for US IPO at $20 Billion Value 

Klarna Logotipo Vector - Descarga Gratis SVG | WorldvectorlogoSwedish firm may list as soon as in the third quarter at a $20bn valuation, far below the $45.6bn peak but above the $6.7bn last year. The Fintech BNPL giant was once Europe’s most valuable startup.


Blackstone buys $1.1bn of US credit card debt from Barclays

Barclays’ strategy of reducing capital requirements through risk transfer agreements. The deal, subject to closing conditions, is expected to finalize this quarter, with Barclays retaining ownership of the accounts and servicing them for a fee. For Blackstone, it highlights their role in providing capital solutions to financial institutions. This follows recent market activity involving both parties, including Blackstone’s acquisition of Sony Payment Services and Barclays’ takeover of Tesco Bank, showcasing a focus on lending.

FinTech Futures, 02/28/2024, Tyler Pathe: Blackstone buys $1.1bn of US credit card debt from Barclays


Webull set for Nasdaq public listing via $7.3bn SPAC merger

Webull set for Nasdaq public listing via $7.3bn SPAC merger - FinTech Futures: Fintech newsSK Growth Opportunities is set to merge with Webull, a New York-based stock trading app, in the second half of 2024, pending regulatory and shareholder approvals. The combined entity will operate under the name “Webull Corporation” and is expected to be listed on Nasdaq with a new ticker symbol. This SPAC deal allows Webull to go public without the usual lengthy process. Webull’s president anticipates the merger to expand their services for retail investors, while SK Growth Opportunities’ CEO is confident that their experience and network will fuel Webull’s growth as a public company. Additionally, Webull entered the Mexican market by acquiring investment platform Flink in November last year. FinTech Futures, 02/29/2024, Tyler Pathe: Webull set for Nasdaq public listing via $7.3bn SPAC merger


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