Ep. 109: 🇲🇽 ZeBrands generates 26.7x returns for its early backers
Plus, 🇲🇽 Fintech R2 US$59 million funding, 🇨🇴 Bia Energy US$8.5 million Bridge round, and more!
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇲🇽 ZeBrands secures a US$53 million credit line
Mexican retail startup ZeBrands secured a syndicated loan of US$53 million from HSBC Mexico and Banco Sabadell Mexico to fund its expansion plans. With the funding the team aims to open at least three new stores per week in 2025, scale manufacturing capacity by tenfold, and repurchase shares to reward early investors. This buyback will provide Seed investors, led by Nazca in 2016, a 26.7x return on their investment. HSBC emphasized the loan reflects confidence in startups like ZeBrands to drive innovation and sustainable growth in Mexico.
Sector: FinTech
Founders: Carlos Salinas, Guillermo Villegas, William Kasstan
Investors: HSBC Mexico, Banco Sabadell
🇲🇽 Fintech R2 US$59 million new funding round
Fintech startup R2 has raised US$59 million in a mix of equity and debt, to expand its lending infrastructure for tech companies across the region. The funding includes US$9 million in a Series A extension and a US$50 million credit line from Community Investment Management to support lending operations in Chile. R2 enables companies like Rappi and Clip to offer revenue-based loans under their own brands, with repayments tied to sales, minimizing defaults. The funds will enhance R2’s AI-driven underwriting models, expand its client base, and support plans for a banking license in Mexico, its largest market, to offer debit cards and improve operational efficiency. Operating in Mexico, Chile, Colombia, and Peru, R2 now aims to double its lending by 2025 while pursuing profitability.
Sector: FinTech
Founders: Roger Larach, Roger Teran
Investors: Hi Ventures, Cometa, Endeavor Catalyst, Community Investment Management
🇨🇴 Bia Energy secures a US$8.5 million Bridge round
Colombian Energy startup, Bia Energy, secured US$8.5 million in a bridge funding round, attracting "green" investors to bolster its climate-focused initiatives. The funding will enhance its AI-powered platform, expand its reach across 140 municipalities, and strengthen its financial position for energy contracts. While planning future international expansion to markets like Brazil and Chile, Bia remains focused on consolidating its operations in Colombia where it currently serves over 3,000 businesses, including Coca-Cola Femsa and Falabella, generating US$8 million in monthly revenue. This deal was RA Capital Management Planetary Health’s first investment in South America.
Sector: Energy Tech
Founders: Sebastián Ruales, Leonardo Velásquez, Guillermo Plaza
Investors: RA Capital Management Planetary Health, IDB Lab
Startups News
Nu Colombia partners with Puntored
Nu Colombia has partnered with Puntored to enable customers to deposit cash directly into their Nu accounts across the country through Puntored’s network of over 15,000 locations. This collaboration aims to enhance financial inclusion by making Nu’s services more accessible, aligning with Nu’s goal to evolve its savings account into a transactional account by 2025. The initiative complements Nu’s focus on promoting cashless payments, PSE transactions, and its Nuplaca. This alliance is a transformative step for Colombia’s financial ecosystem, paving the way for broader payment democratization.
Yumari won the 2024 Entrepreneurship World Cup
Mexican startup Yumari, accelerated by incMTY, achieved a historic victory by winning first place in the Early Stage category at the 2024 Entrepreneurship World Cup (EWC) in Riyadh, Saudi Arabia. Yumari, a B2B commerce platform leveraging AI and proprietary data to optimize supply chains, received US$1 million in cash prizes. This marks the first time a Latin American startup has earned this distinction in the global competition, which is organized by the Global Entrepreneurship Network and Monsha’at.
VC - M&A News
🇲🇽 Venture Capital fund Eko announced US$10 million earmarked for investment by 2025
Eko is a Mexican venture capital fund investing in early-stage startup with a model that combines financial support with strategic and technological backing. With US$10 million earmarked for investment by 2025, Eko focuses on startups in Fintech, logistics, AI, Healthtech, and Edtech, investing US$150,000 per project—70% for technology development and 30% for operational growth. Acting as "Extended Co-Founders" Eko has already supported 11 startups with a combined valuation of US$70 million, including success stories like Balam (cross-border payments) and KargaPorte (logistics platform).
Latin America’s Fintech sector is showing signs of recovery
Latin America’s Fintech sector is showing signs of recovery, with US$2.6 billion invested in 174 deals so far in 2024—a 73% increase from 2023. Mike Packer of QED Investors noted this rebound reflects both startups resurfacing for funding and achieving growth milestones. The quality of founders and projects has improved, shifting from consumer-focused ventures to infrastructure-building startups. However, challenges remain, including limited exits and reliance on local funding, underscoring the region's untapped potential for innovation in financial services.
Economy
🇸🇻 Moody’s has upgraded El Salvador’s sovereign rating from Caa1 to B3
This upgrade, the second time this year, comes from improved growth and investment prospects driven by enhanced security conditions and strong government liquidity. Recent debt management operations, including bond buybacks, have significantly reduced external bond maturities until 2029, boosting market confidence. The 2025 budget focuses on fiscal consolidation through austerity measures, reducing current expenditures while increasing investment spending to stimulate economic activity. The fiscal deficit of the non-financial public sector (NFPS) has steadily declined to 2.3% of GDP in 2023, with further reductions projected to 1.1% by 2025.
Expansion Plans
🇪🇸 Coinscrap Finance is expanding into Colombia
Spanish Fintech Coinscrap Finance has entered the Colombian market to enhance financial health and inclusion using AI-powered tools. Led by CEO David Conde, the company offers solutions like transaction categorization, personalized financial products, and automated savings, aimed at improving financial transparency and efficiency. Coinscrap’s AI engine, COCO, enables accurate transaction analysis, and supports local banks in fostering financial education. With a strong focus on cybersecurity and user protection, Coinscrap plans to contribute to Colombia's financial ecosystem while aligning with Open Banking trends and promoting informed decision-making.
🇦🇷 Koin is landing in Colombia
Koin, the Fintech arm of Grupo Despegar, has launched operations in Colombia to combat e-commerce fraud. Led by CEO Nicolás Obejero, the company plans to onboard at least 100 merchants in its first year, addressing threats like card fraud, phishing, and identity theft. Annually, Koin analyzes over 25 million transactions across Latin America. With Colombia experiencing rapid e-commerce growth, Koin sees its entry as strategically aligned to provide fraud prevention solutions and improve user experiences.
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Abrazo,
Arnaud