Ep. 45: Latin American Unicorns Close Alliances
Welcome to Miranda Scenius: Your weekly newsletter on technology, innovation, and startups in Mexico.
What a surprise?! This past week, we witnessed a late-stage startup closing a mega equity funding round. Obviously, it had to be Latin America’s fastest growing unicorn, Clara. Let’s hope it opens the door to more late-stage funding rounds.
Talking about Unicorns, Latin American giants are joining forces to offer better products across the region. While in the last few months we mostly saw early-stage startup partnering, it seems like late-stage companies are jumping on the trend as well.
From the VC’s side, they are taking advantage of these quieter times to power up their presence, producing more public-facing content and fostering dynamic communities. It’s the right time to add some tangible value to the real world.
Follow The Money
Spend management Clara secures US$60M in equity funding
Clara provides financial spend management software, corporate cards, bill payment and financing solutions. The funds will be used to expand its engineering and product teams, further technology development, and expand its leadership team. The company's new product around Brazil's instant payment method, Pix, is close to launch, said CEO Gerry Giacomán Colyer. It brings total equity funding to US$160 million with US$240 million in venture debt raised.
Sector: FinTech - Spend Management
Total raised to date: US$160 million
Founders: Gerry Giacomán Colyer, Diego Iván García Escobedo
Investors: GGV Capital, Alter Global, Cotaue, DST, monashees
Startups News
Unicorn Tiendanube closed an alliance with Mercado Pago, and Envia.com (a Mexican transport company)
The Argentine unicorn provides a platform for creating online stores, and is launching, with its new partners, a plan that will provide Mexican entrepreneurs with free access to its technology. In Mexico, only 2% of the more than 4 million MSMEs have their own online store, and Tiendanube aims to help entrepreneurs overcome the main challenges faced when starting a business, including lack of financing, time and technological knowledge.
Unicorn Bitso and once-unicorn, Despegar form an alliance too
Bitso, the cryptocurrency unicorn, has partnered with Despegar to allow the two million travelers who are part of the travel platform's rewards program in Mexico to redeem their points for cryptocurrencies, which will be automatically credited to the Bitso wallet created by the user. This collaboration marks Bitso's first with a travel industry company in Mexico, with plans to gradually implement the option in other countries where the program operates. In a statement, Despegar Mexico highlighted the company's constant search for innovative ways to bring its offerings closer to travelers in Latin America.
A new health control startup to launch operations in Mexico
Mexican startup Habits AI has launched Habits Hackers, an app that uses AI and cutting-edge devices to help users take control of their health and reduce the risk of metabolic diseases such as diabetes, hypertension, and obesity. The app offers personalized recommendations based on real-time measurements of glucose, stress, sleep, physical activity, and diet, taken on the user's smartphone. The startup's goal is to promote a preventive approach to healthcare and reduce the economic burden of preventable diseases on individuals, families, and institutions.
FEMSA burns MXN$900 million in its digital bet
The company's digital business includes financial services and loyalty programs for Oxxo customers, generating losses during the first quarter. However, FEMSA hopes that its digital ecosystem, which integrates Spin fintech, rewards programs, and B2B services, will become monetizable and profitable over the next 18 to 24 months. The company is also planning to offer remittance services and credit to businesses it serves through its beverage distribution business. Spin by Oxxo had 6.4 million total users, 4.2 million of which are active, while Spin Premia had 28.9 million total users, 12.7 million of which are active, at the end of the first quarter.
VC - Accelerators News
VC firms ALLVP launches an AI Community
ALLVP has launched LAIC, the first AI community in Latin America. LAIC is a community of founders and investors seeking to build and invest in AI to solve Latin America's toughest problems. The community aims to bring together AI enthusiasts, entrepreneurs, and investors from across the region to share ideas, learn from experts, and shape the future of AI in Latin America. Based in Mexico City, ALLVP is one of the most active Seed and Series A funds in the venture capital industry in Latin America.
Nido Ventures launches its own newsletter
The Mexico City based VC firm has launched its newsletter called "ConteNIDO" (Smart name!) which will contain a variety of articles and essays relevant to the world of venture capital. The aim of the newsletter is to understand VC from a Latin American perspective and unlock its growth potential in the region. José Luis Sabau, EIR of Nido Ventures and the main writer of the newsletter, will share essays that combine his love for Latin America, writing, and learning.
Rest of the World
Brazilian Bonoxs arrives in Mexico
The startup that democratizes payment methods in the gamer community, has arrived in Mexico after its success in Brazil, where it already has over a million users. Bonoxs provides gamers with gift cards to buy products online in their favorite video games and platforms, especially for those who don't have access to credit cards. In Mexico, Bonoxs offers payment options in convenience stores like Oxxo, and the possibility of bank transfers. The Mexican gamer market has grown exponentially, with 57.4% of the population estimated to be gamers. In 2024, the company plans to implement a loyalty program that will offer bonus points that can be redeemed to purchase other products.
Chilean LedgiFi debuts in Mexico
The startup that simplifies cryptocurrency tax compliance arrives in Mexico despite unclear cryptocurrency tax regulations. LedgiFi, which is adapted to Mexico's system, allows users to calculate their taxes and file their declarations efficiently. The platform allows users to keep a record of their cryptocurrency transactions, perform accurate tax calculations, and comply with fiscal obligations more efficiently. It also provides detailed tax reports and portfolio analysis tools for informed investment decisions. LedgiFi is a pioneer in cryptocurrency solutions in Latin America, and its arrival marks a significant milestone in the region's cryptocurrency market.
Community
Every week we share what we have been reading or listening:
Unreasonable México list of 12 selected Startups
Google for Startups Accelerator Latino Founders list of selected founders
Iupana briefing on FRB collapse and its impact in LatAm
Everardo J. Barojas is the Founder and director of Prescrypto, a pioneering blockchain based open source ePrescription platform for Latam. Dedicated to product design and development since 2012 he began his career as a mountaineering guide, later as a subcontractor and early team member in the first Bitcoin exchange in Mexico. He’s a mechatronics engineer, with a MSc in Astronomical Instrumentation and PhD in finance + management, specializing in cryptocurrencies. He is interested in books, mountains, art and technology.
What would you have liked to know before starting your company?
I would've liked to have known more and had some examples about the lifecycle of health technology companies, understanding that VC money is not as liquid in this ecosystem and that headlines and capital would follow the hotness of fintech and ecommerce.
What outsiders often fail to understand about your company?
That our margins are exceptionally high.
What's one thing you can keep talking about for hours?
About product and UX, intuitive design and in lieu of that, mountaineering, climbing and history.
What’s the weirdest job you’ve ever had to do?
To build a robotic arm that mimics how a doctor signs a prescription, with a Mont Blanc pen and everything.
What makes you bullish on the Mexican startup ecosystem?
Am I bullish on the Mexican startup ecosystem? I am, but not always and not blindly. We should always reflect on this subject, as not everything is perfect. However, what makes me bullish is our talent and ingenuity.
See you for the next edition. Have a question or any feedback? Just hit reply. We'd love to chat!