Ep. 34: Local VCs are on fire, HealthTech funding is getting more trendy, and La Tatuadora is looking for a Co-CEO.
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
This week the Sœurs Jumelles startups Yotepresto and Zenfi are sharing a nice US$8.5 million round to boost their growth after many years of bootstrapping, and HealthTech Medsi takes on Debt while looking to close an Equity round.
After Amplifica Capital last week, this time it's Dila Capital announcing the closing of their 4th funds. In addition, Mexico got a new climat-tech focused VC - Rumbo Ventures. Signals are abundant that even if funding has been drying lately, investors are still bullish on the long term prospect of Mexico.
Let’s get to it and more!
Equity Funding Rounds
Shared Funding Round for Yotepresto and Zenfi
The two FinTechs founded by Luis Rubén Chávez Tostado announced a US$8.5 million round to fund dozens of features on the product roadmap, launching three countries in Latin America and hiring more people to add to Zenfi’s 60-person team.
Almost entirely bootstrapped, the two FinTechs combined have more than 3 million users, have distributed over $100 million in loans, have a 3.4% default rate and US$10 million in annual recurring revenue generated from interest rates, small fees associated with credit score checks and commissions from the investment products.
Sector: FinTech
Total raised to date: US$11.5 million
Founders: Luis Rubén Chávez
Investors: Magma Partners, Cometa, Redwood Ventures, Polígono
Venture Debt Rounds
HealthTech Medsi takes on US$10 million in Debt
The startup is working on making healthcare services affordable to everyone through personal loans.
According to Medsi CEO, in Mexico about half of the population has access to a personal health coverage, and only 5% to a private one. He adds that the lack of financial inclusion makes the matter worst as people without a credit card or access to credit lines can’t face health-related emergencies.
The founding team is also looking to raise a Seed equity round to boost its development in the coming months.
Sector: HealthTech
Total raised to date: US$10 million in Debt
Founders: Manuel Villalvazo, Pepe Cabrera
Investors: CAPEM México
Startups News
Kiban Cloud Launch
After years of developing solutions for the fintech industry, Kiban launches its new platform Kiban Cloud, a place that brings together fintech tools at affordable costs. With this new product the company seeks to open the door to companies outside of the financial sector.
With this business twist, Kiban opens the door for companies to know that fintech tools are for everyone, regardless of size or sector, and continue working on its own renewal process.
Lara AI uses AI to boost companies’ culture
We haven’t talked much about the great resignation lately but more about the many lay-offs from tech companies. Still, it doesn’t mean that talents are easy to find and retain. Lara AI platform is here to detect unhappy employees before they take the leap to quit. It uses a conversational AI that integrates into Slack, WhatsApp, and Microsoft Teams to talk to each employee individually and get feedback on their experience in the company.
With work having moved to online and remote, it brings new challenges for the HR department to stay close to the teams and have a feeling on how things are going.
VC - M&A News
Mexico gets a new VC: Rumbo Ventures
Founded by Fernando Lelo de Larrea, Mexico-based Rumbo Ventures will invest in Latin American startups working on the climate change sector and wants to position itself as a major actor in the space.
The funds will be open to lead or co-lead investment rounds ranging from Pre-Seed to Series A and have already written checks in a few startups including: Nilus, Cultivo, Thalasso, and Tycho.
Dila Capital closed its 4th fund
After Amplifica Capital last week, it’s another local VC turn to successfully close a new fund. Looks like Mexico is still attracting capital. Armed with US$115 millions, Dila Capital aims to invest in between 20 to 25 startups with one to four millions check for Pre Serie A and Serie A round.
Strong of 12+ years of experience, the Venture Capital firm counts a portfolio of 50 companies, including names as Kushki, Crehana, Incode, Fairplay, and Cobee.
FinTech Mendel Acquires Te Facturo
Following a US$60 million investment last September, the Mexican spend management startup deployed some of its capital to acquire Te Facturo, a company focused on managing digital tax receipts, known as CFDi in Mexico. The move follows a new regulation from the Mexican government called CFDi 4.0, making it mandatory for companies to send digital invoices through the SAT system (Tax Administration Service).
Job of the Week
EdTech La Tatuadora is looking for a Co-CEO.
The startup is focused on teaching urban beauty-related jobs: Barbers, Tattoo Artists, and Piercing professionals. With more than 8,000 students and a community of over 2 millions, La Tatuadora is positioning itself as a leader in this segment.
If you have experience leading a team of Sales or Marketing and have worked in Tech with a passion for education, you should reach out to Matthieu Dahirel here.
Javier Diaz is strong of 16+ years of experience in the tech industry while holding two master’s degrees in Engineering and Business Administration.
Over the years he got the chance to work and live in several countries (France, USA, Venezuela, Scotland, Brazil, Mexico), while working with global corporations in the energy sector. His time abroad taught him how to adapt to new cultures and speak several languages. He now lives in Mexico City.
Right before Covid, with a friend who is a physician, they decided to start a HealthTech company focused on preventive and predictive healthcare to increase the probability of patients to survive and help them have a better overall health.
What would you have liked to know before starting your company?
First, all the regulations you have to comply with in the health sector. For sure each sector has challenges, but in the case of the health industry there are too many changing and complex regulations.
Second, the physicians’ mindset in LATAM. In the region medical schools only focus on the literature but rarely get students to focus on thinking about processes and numeric-analytics. This reality makes it harder to develop digital tools to improve processes, but also to get them adopted by the industry.
What outsiders often fail to understand about your company/sector?
I would say people from other industries are decades ahead regarding the use of high-technology for their processes and daily operations and might think it is the same in the health industry - which it is not.
Unfortunately, predictive health practices is sometimes a too early topic for people involved in the health industry. They are not used to the fact that data can be used in order to determine patterns in healthcare. Due to these reasons, we are mainly focused on occupational health, where private companies understand better that prevention and prediction can be both used to improve health for their employees; increasing their productivity and profitability.
What's one thing you can keep talking about for hours?
I have several topics that I feel passionate about. Regarding business and strategy, I would say “Management of change”, mainly focused on how to help an organization to embrace new technologies and processes.
Nevertheless, I also like to talk about technology, purpose, business plans, volunteering, finances, marketing, swimming, triathlons, travels, food, etc.
What’s the weirdest job you’ve ever had to do?
Being my own therapist! I needed to mentally force myself to stop working when I was sometimes working too many hours a week. As an entrepreneur, working hours never end. The job needs to be done, and you’re responsible for that. So, finding a work-life balance is really hard when you’re so focused on achieving your goal as an entrepreneur.
What makes you bullish on the Mexican startup ecosystem?
Everything. I mean, we are living in a privileged geographical area. Mexico connects LATAM with the USA and Canada and vice versa. Mexico receives the main proportion of the total external investment of the region. Mexico City only receives more than 5% of all the money invested in LATAM.
Decades of problems and challenges in Mexico have developed a population full of creativity. This creativity can be seen all over the country and push for new ideas and new solutions - sometimes ending in big disruption.
The market in Mexico City is huge and diverse which gives you a lot of room to test and learn.
Talents are everywhere and you can find developers with really outstanding performance even in the most remote places, which makes it easier to build your team.
I see thousands of reasons to start a company in Mexico or to invest here.