Ep. 103: It's raining pesos in Mexico!
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇲🇽 Jüsto raised a US $70 Million Series C
Jüsto is a new generation of online supermarkets with operations in Mexico, Brazil, and Peru. The team just raised US $50 million in equity led by General Atlantic and, US $20 million debt financing from HSBC México. The funding will support Jüsto's growth strategy, particularly in Mexico, while improving operational efficiency and expanding its e-commerce model across the region. Founded in 2019, Jüsto is Mexico’s first fully online grocery platform, leveraging AI and data analytics to enhance supply chain efficiency and reduce waste. The startup promotes fair trade practices and partners with both large and local producers, offering customers competitive prices and high-quality products.
Sector: Online Supermarkets
Founders: Ricardo Weder, Ricardo Martinez Finger, Alejandro Sisniega
Investors: General Atlantic, HSBC México
🇲🇽 albo secures a US $60 million credit line
The Mexican Fintech albo has secured a new US $60 million credit line to boost its credit products and reach profitability within months. CEO Ángel Sahagún emphasized the importance of profitability in a Fintech landscape where many firms are losing money. While albo's Electronic Payment Fund Institution (IFPE) has been profitable for three years, the company aims to make its entire group, including credit-focused entities, profitable. With over 3 million users and US $130 million in historical credit placements, albo is focused on providing credit to underserved segments in Mexico's growing financial market.
Sector: FinTech
Founders: Ángel Sahagún
Investors: SixPoint Capital Management
🇲🇽 Sistema.bio secures US $15 million in financing
Sistema.bio is a global leader in biogas technology. The funding will fuel the company’s growth, diversify its bioenergy products, and expand its impact across Asia, Africa, and Latin America. Sistema.bio’s innovative technology converts animal waste into clean biogas and biofertilizer, enhancing agricultural productivity and reducing carbon emissions. With over 100,000 biogas units installed globally, the company aims to empower one million farmers by 2025 and reduce 1% of global emissions by 2030.
Sector: BioTech
Founders: Alexander Eaton, Camilo Pages
Investors: ElectriFI, Chroma Impact Investment, KawiSafi Ventures, AXA IM Alts, Blink CV, EcoEnterprises Fund
Startups News
Platzi partners with DeVry University
EdTech Platzi has partnered with DeVry University to offer Latin American students the opportunity to obtain U.S. degrees without needing a visa and at significantly reduced costs. Active Platzi users can now earn certifications, bachelor's, or master's degrees from DeVry University, with discounts of up to 75% for those passing Challenge Exams. This initiative allows students to study remotely in fields such as software development and cybersecurity, providing affordable access to accredited U.S. education. Additionally, companies can use this program to enhance their workforce’s skills in key technological areas.
Minka and Kupi partnered in Colombia
Fintech companies Minka and Kupi have partnered to bring real-time interoperable payment systems to Colombia's solidarity sector. This collaboration benefits over 40 Cajas de Compensación Familiar, 2,000 employee funds, and cooperatives, allowing them to offer instant payments through the Transfiya service. The alliance will simplify transfers for 450,000 current users and over one million potential users, improving financial inclusion and modernizing the sector. By facilitating quick and seamless payments, the partnership supports the distribution of benefits, subsidies, and credits, boosting efficiency in a market that moves US $70 million annually.
VC - M&A News
Seedstars Capital X Redwood Ventures
Seedstars Capital and Redwood Ventures have formed a strategic alliance to boost innovation and economic growth in Latin America. The partnership combines Seedstars' global network and expertise in emerging markets with Redwood's focus on post-Seed and Series A investments in Mexico. Together, they aim to strengthen the region's startup ecosystem, attract foreign investment, and provide support for high-potential startups. By leveraging resources and mentorship, this alliance seeks to close the gap between Latin American innovation and international markets, fostering a transformative impact on both the economy and society.
Economy
Latin American saw a 30% increase in capital raised
According to a recent report by Endeavor Mexico and Glisco Partners, Latin American startups saw a 30% increase in capital raised during the first half of 2024 compared to the same period in 2023. This growth, amounting to US$1.1 billion, was mostly driven by investments in later-stage startups. However, the total number of investments decreased by 63%, reflecting greater selectivity. High interest rates and longer funding timelines have created a more competitive environment, especially for early-stage startups. Brazil leads the region in capital raised, while Colombia is emerging as a strong contender.
Expansion Plans
England-based PXP Financial is expanding into Latin America
PXP Financial has partnered with payment platform Kushki to expand its services across the region, targeting Mexico, Chile, Colombia, Ecuador, and Peru. The partnership aims to provide comprehensive payment solutions for both merchants and consumers, leveraging Kushki's technology to simplify local and cross-border payments. This collaboration allows PXP Financial to access new customers and markets in LATAM, offering multiple payment methods and currencies.
🇨🇱 Rocketbot is opening new offices in Brazil
The Chilean Scaleup Rocketbot is accelerating its international expansion by opening new offices in São Paulo, Brazil, marking a shift from relying on local distributors to establishing a direct presence with Brazilian talent. This decision came after challenges with cultural and tax complexities in the market. Led by Matías Leiva, Rocketbot aims to strengthen its presence in Brazil, targeting 20 corporate partners within a year. This expansion is part of Rocketbot's strategy to lead the RPA sector in Latin America, while also supporting industries like automotive through partnerships, such as with ITALIKA in Mexico.
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Abrazo,
Arnaud