Miranda’s Weekly Mex FinTech Monitor

Miranda’s Weekly Mex FinTech Monitor

 November 6, 2023  

 

Mexico FinTech News

FinTech branches support quarterly earnings 

In the third quarter of 2023, FEMSA made known that Spin by Oxxo reached 8.8 million customers and consumes only a fraction of the cash generated from its operations, offering opportunities for valuable acquisitions. The company also announced that it would open a thousand new Oxxo stores annually in Mexico and accelerate its retail expansion in Colombia, Chile, and Peru. Meanwhile, Mercado Pago, Mercado Libre’s FinTech arm, reported that during the second quarter of 2023, their sales increased 17.2% year-over-year, adding 7.1 million users in Mexico, Argentina, and Brazil. Mexico has become a primary market for the e-commerce giant in part due to its fintech which grew 60% in Q2 compared to the same period of last year.

El Financiero, 10/31/2023, Alejandra Rodríguez: FEMSA invertirá 5,000 mdd en su expansión

Creze secures a credit line of 100 million pesos from BBVA Spark

The SOFOM Creze, a financial institution specializing in lending to small and medium-sized enterprises (SMEs), secured a credit line of up to 100 million pesos from BBVA Spark, a financial arm of BBVA that supports high-impact companies. Creze, led by Juan Ahedo and Bernardo Prum, has facilitated over 2 billion pesos in loans to more than 5,000 SMEs using its platform and risk model, which leverages technologies like artificial intelligence to provide accessible credit to underserved SMEs. This partnership with BBVA Spark is expected to enhance Creze’s mission of empowering Mexican SMEs, with the potential to extend the credit line.

El Economista, 11/2/2023, Sebastián Estrada: Creze obtiene línea de crédito por 100 millones de pesos de BBVA Spark

Vergor raises US $7.5 million to digitalize Mexico’s agricultural sector

Mexico-based fintech startup Verqor has raised US $7.5 million, including US $4 million in a pre-Series A funding round led by Yara Growth Ventures. The round also saw participation from Accion Venture Lab, SP Ventures, Glocal, and Amplifica Capital, in addition to US $3.5 million in additional debt financing from Co_Capital and Addem Capital. Verqor offers cashless credits to farmers for purchasing necessary inputs like fertilizers, agrochemicals, and organic products, with 55% of users accessing credit for the first time. The company uses data such as Normalized Difference Vegetation Index (NDVI) factors and supply chain trends to assess an agricultural borrower’s creditworthiness. The funds will enable Verqor to expand and develop its credit approval process, aiming to transform traditional agribusiness in Mexico.

Other news

El Economista, 11/01/2023, Sebastián Estrada: Belvo entra al segmento de pagos en México

 

LatAm FinTech News

Brazilin FinTech raises US $200 million and plans future IPO 

Sao Paulo-based FinTech QI Tech, raised US $200 million in a series B round led by General Atlantic. The company, which specializes in banking services and digital infrastructure for businesses plans to use the funds for future acquisitions and to prepare for a public offering either in Brazil or abroad. According to QI Tech’s Chief Financial Officer Marcelo Bentivoglio, the company has been profitable since the beginning.

Silicon Valley Bank seeks to attract Latin American startups back after collapse 

Silicon Valley Bank is on a mission to rebuild relationships with Latin American startups, aiming to restore trust following a challenging period. Recognizing the pivotal role of these innovative businesses in the region’s growth, the bank seeks to position itself as the preferred financial partner for Latin American startups looking to scale and expand. By offering not only financial solutions but also valuable insights and resources, Silicon Valley Bank is committed to fostering a stronger and more collaborative relationship with the region’s entrepreneurs. As Latin American startups continue to shine on the global stage, this initiative holds the promise of further propelling the region’s entrepreneurial spirit and supporting its growth.

Other news 

Iupana, 11/3/2023, Ivis Aguilera: Los planes de Credicorp on Yape

Global FinTech News 

Tabby lands US $200 million Series D at US $1.5 billion valuation ahead of planned IPO

Tabby, a Saudi-based fintech firm, has successfully raised US $80 million in an equity funding round, with contributions from Bluepool Capital and existing investors, such as STV, Mubadala Investment Capital, PayPal Ventures, and Arbor Ventures. This funding round has positioned Tabby as the first fintech unicorn in the region, paving the way for its planned initial public offering (IPO) in Saudi Arabia, where it is now headquartered. The company, which previously raised US $58 million in its Series C earlier this year, claims to be profitable and has attracted over 10 million users, collaborating with more than 30,000 brands in the Middle East and North Africa region. The fresh capital will support the growing demand for its Buy Now, Pay Later (BNPL) product and further product development.

Ibotta prepares for IPO

Digital marketing software firm and FinTech Ibotta is reportedly preparing for an initial public offering (IPO) with the assistance of advisers Goldman Sachs Group and Citigroup, which could potentially value the company at over US $2 billion. The US-based FinTech specializes in facilitating mobile promotions through rewards and rebates for brands, partnering with over 2,000 retailers, including major players like Walmart and Dollar General. While the exact timing of the IPO has not been determined, it is expected to take place next year. Ibotta joins a list of companies that are waiting for more favorable market conditions to launch their IPOs, given the uncertainty in the US IPO market.

PYMNTS, 11/2/2023, Staff: Ibotta Prepares for $2 Billion IPO

Other news