LATAM Fintech | 2021 #14
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!
London-based payments company Paysafe has agreed to acquire SafetyPay in a $441 million deal, its second acquisition in the space of a month.
Paysafe says the acquisition will boost its presence in Latin America, SafetyPay’s majority market. It builds on the firm’s recent deal with Peruvian platform PagoEfectivo.
The firm says its double acquisition sets it apart as “the leading open banking and e-cash solutions provider in Latin America”.
SafetyPay was founded in 2007 as an e-commerce platform focused on allowing customers to use alternative methods of payment.
The firm has a presence in 11 Latin American countries via a network of banks, cash collection points, and merchants. It claims 90% bank coverage in the region.
👉 Read more here.
NOW, ON TO THE SUMMARY OF THE LATEST NEWS IN LATAM
NEWS HIGHLIGHTS
Fintech venture capital investments continue at a record-breaking pace, and nowhere is this more apparent than in the Latin American region.
According to Crunchbase, this area is now home to more than 20 unicorns.
Per their report, “If you’re wondering what industry has captured the most startup capital, it’s fintech by a long shot.”
One area that has captured VC attention in this geography recently has been technology aimed at small and medium business (SMB) enablement.
This comes down to 3 primary reasons: right time, right place, and right people.
👉 Read more here.
INDUSTRY HIGHLIGHTS
⭐️ Almost a year after buying Easynvest, Nubank is leaving behind the brokerage firm's brand and changing its name to Nu Invest - another step in integrating the two companies and the fintech's investment strategy. Link here.
⭐️ David Vélez, founder of the world's largest independent digital bank, Nubank, has signed the Giving Pledge initiative. He pledges to donate the majority of his wealth to solving social problems. Link here.
ARGENTINA
The dollars keep flowing into Latin America.
Ualá announced it has raised $350 million in a Series D round at a post-money valuation of $2.45 billion.
SoftBank Latin America Fund and affiliates of China-based Tencent co-led the round, which included participation from a slew of existing backers, including funds managed by Soros Capital Fund Management LLC, funds managed by affiliates of Goldman Sachs Asset Management, Ribbit Capital, Greyhound Capital, monashees and Endeavor Catalyst.
New funds, such as D1 Capital Partners L.P. and 166 2nd, also put money in the round in addition to angel investors such as Jacqueline Reses and Isaac Lee.
The round is believed to be the largest private raise ever by an Argentinian company and brings Ualá’s total raised to $544 million since its 2017 inception.
👉 Read more here.
BRAZIL
There are many people who would love to earn income in that way but can’t because of their lack of car ownership (and all that goes with it) — especially in countries outside of the United States.
In an attempt to remedy that problem, São Paulo-based Kovi was founded in 2018 to give those people access to those opportunities.
Kovi is announcing it has raised $104 million in a Series B round of funding co-led by Valor Capital Group and Prosus Ventures.
👉 Read more here.
Brazilian digital bank Nubank, which has a multimillion-dollar investment from legendary investor Warren Buffett's company, is planning an initial public offering of more than $2 billion in the US stock market, according to a Bloomberg LP report.
The FinTech, legally named Nu Pagamentos SA, is aiming to launch its IPO on Nasdaq by the end of 2021 and it may seek a valuation of more than $40 billion.
👉 Read more here.
MEXICO
Angel Sahagun is now on his third company, and it has already raised tens of millions of dollars to completely disrupt a major industry.
On the DealMakers Show, Sahagun shared his journey through several startups. Including how his third venture has managed to gain 40% market share in a major industry in just a few years.
Plus, fundraising from Latin America, engaging investors, the three main factors for securing a startup investment, and how he has built a new all remote employee bank.
Angel Sahagun was born in the small coastal town of Campeche, on Mexico’s Yucatan Peninsula.
It is a tranquil place which had a population of fewer than 100k, and where you grow up being very connected with your family and involved in your community.
👉 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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