LATAM Fintech | 2021 #12
Hi, there! Welcome back to another LATAM Fintech Newsletter. In this newsletter, I cover all the major news related to LATAM Fintech. Thank you for subscribing!
Prometeo Open Banking, an Open Banking API platform in Latin America, has announced the launch of Spark, a free program for startups, fintech companies, and small businesses that provides access to its infrastructure of banking connections with APIs in a region that has been historically underserved financially.
Any of the aforementioned companies are welcome to join the free program from Prometeo.
They will have access to all of Prometeo’s fiscal and payment API connections in their country and be granted $5,000 for six months to test solutions, optimize and automate their internal processes, and expand the reach of their digital products.
👉 Read more here.
NOW, ON TO THE SUMMARY OF THE LATEST NEWS IN LATAM
NEWS HIGHLIGHTS
Small and medium-sized businesses in Latin America can find it difficult to get the funds they need to export their goods to the United States.
It’s a gap Marco Financial is looking to bridge through its tech-enabled risk assessment platform that can provide better insight on who should receive loans.
To continue its mission, the Miami-based trade finance company raised $7 million in seed funding and $75 million in a credit facility, led by Arcadia Funds LLC and Kayyak Ventures, to increase its credit line to $100 million.
Marco was backed last September by a small seed round from Struck Capital and Antler and over $20 million in a credit facility underwritten by Arcadia Funds.
👉 Read more here.
INDUSTRY HIGHLIGHTS
⭐️ Nubank was elected as the best bank in Latin America in 2021, according to the Euromoney’s Awards for Excellence, by the British magazine Euromoney. Link here.
⭐️ Rappi raised “over” $500 million at a $5.25 billion valuation in a Series F round led by T. Rowe Price. Link here.
⭐️ Chicago-based fintech M1 Finance has raised $150 million in a Series E funding round led by SoftBank’s Vision Fund 2. Link here.
⭐️ Following the launch of its premium card, the Nubank Ultraviolet, Nubank has just launched its first investment funds on the Easynvest platform, which belongs to the digital bank. Link here.
EL SALVADOR
Many companies are approaching El Salvador’s government authorities to invest in Salvador to expand their Cryptocurrency business & startups at a significant level.
👉 Read more here.
BRAZIL
Nubank released a new interface for its application. With the aim of making everyday life uncomplicated and making it easier to access information in the app, the new design promises to be more practical and intuitive.
The virtual bank has launched several services since the beginning of this year and says that as its products grow, access to information should be easier.
The home screen has been redesigned to highlight the functions most frequently used in the daily lives of your customers.
👉 Read more here.
MEXICO
Mexico City-based Vexi aims to serve underbanked Mexicans with credit cards and a mobile app for managing transactions and budgeting.
A $500,000 debt investment from Pomona comes as Vexi prepares to launch a new American Express card for “buy now, pay later” promotions, said Vexi’s Gustavo Blasquez.
Pomona invested via its second venture fund, which is looking to raise $30 million to invest in early-stage businesses in agriculture, renewable energy, financial services and other sectors.
The vehicle is backed by Capria Ventures, IDB Lab, the Fund for the Promotion of Development, and others.
👉 Read more here.
Fiserv Inc., a leading global provider of payments and financial services technology, today announced the integration of a cutting-edge fraud prevention solution into its e-commerce payment gateway to reduce the fraud-related chargeback risk for Mexico’s online commerce.
The Vesta fraud prevention platform helps secure online payment transactions, reduces the decline rate, and includes a “Zero Chargeback Guarantee.”
👉 Read more here.
Klar, a leading digital financial services platform providing a transparent, free and secure alternative to traditional debit and credit services in Mexico, today announced its Series B funding round, subject to applicable regulatory approvals, including clearance of the Mexican Banking and Securities Commission (CNBV) and the Mexican Economic Competition Commission (COFECE).
General Atlantic, a leading global growth equity firm, led the round with participation from existing investors Prosus Ventures, Quona Capital, Mouro Capital, International Finance Corporation, and WTI.
The funding will be used to strengthen Klar’s efforts to broaden access to consumer credit as Mexico’s transition to a digital economy accelerates through product and proprietary technology expansion.
👉 Read more here.
ARGENTINA
Argentina’s booming fintech industry boasts over 300 companies that employ nearly 15,000 people.
This year, the sector is expected to create more than 5,600 positions, reflecting on the industry’s massive growth and traction, according to data from Cámara Argentina de Fintech (the Argentine Chamber of Fintech).
Results of research shared in May 2021 by the organization show that 20% of all Argentine fintech companies currently in operation were founded just last year, showcasing the accelerated growth the sector witnessed during the global pandemic.
👉 Read more here.
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This ends my weekly LATAM fintech newsletter. Thank you for reading to the end! If you liked it, I invite you to like, share and/or leave a comment below.
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Regards,
Marcel van Oost
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