Ep. 54: From Crisis to Opportunity: The Unexpected Rise of Healthtech in Mexico
Welcome to Miranda Scenius: Your weekly newsletter on technology, innovation, and startups in Mexico.
Some weeks are busy, others are not. Maybe the startup scene knew that I was travelling to Colombia and that Sara was taking some days off and wanted to give us some time to relax, or perhaps we are entering the summer season and everyone’s much deserved holidays. Who knows… But I hope everyone is finding ways to cool off in this heat.
Nevertheless, today we still have space to cover the latest lay-off at Merama; Clip and Tiendanube partnership; Octapus surfing the cybersecurity wave, and a bunch of exciting LatAm startups making the jump to Mexico following their funding rounds.
And following last week’s analysis of the Venture Debt market in Mexico, we are continuing with our deep dives through an analysis of the HealthTech trend and its recent growth.
Startups News
Le Wagon to encourage women to pursue a career in technology
In partnership with the Inter-American Development Bank and Quotanda, the initiative allows students to learn first and pay later, after securing a job. This model is applicable to part-time bootcamps in Data Analysis, Data Science, or Web Development. According to the Mexican Institute for Competitiveness, only 38% of those studying science, technology, engineering, and mathematics (STEM) subjects in Mexico are women.
Unicorn Merama laid off 10% of its staff
The downsizing affects projects that are no longer a priority and aims to refocus on brands with over US$15 million in revenue. This news comes in the wave of recent layoffs across Latin American startups due to a sharp drop in venture funding. Nevertheless, the company's headcount will remain over 400 employees.
Clip and Tiendanube have formed a strategic partnership
The alliance enables online vendors to access their daily sales regardless of weekends or holidays, effectively reducing the typical four-day working delay to access income. This comprehensive digital payment platform allows entrepreneurs to accept credit, debit cards, and vouchers, and integrate payments for online sales. As a result of this partnership, businesses can now process online payments with daily fund settlements, even on weekends and holidays, with rapid integration and robust anti-fraud technology to provide a secure payment method for users.
Octapus wants to revolutionize Latin America's cybersecurity landscape
This startup specializing in cybersecurity is making waves in the Latin American tech scene. Offering customized solutions in cybersecurity and sovereign cloud services, the firm is currently operating in Mexico and Colombia and is aiming for a wider expansion across Latin America. Mexico, being the company's origin and one of the nations most affected by cyberattacks, plays a vital role in Octapus' market strategy. Cyberattacks in the country have surged by 1600% in the past year, positioning Octapus to cater to the mounting demand for cybersecurity solutions in the region.
Rest of the World
Chilean fintech Shinkansen comes to Mexico
Following a US$3 million seed funding round led by Mexican venture capital firm ALLVP, the FinTech known for its fast money transfer solutions in the banking and fintech sectors is announcing its expansion plan. Shinkansen leverages Artificial Intelligence to automate operations and facilitate money movements in Latin America's fragmented market. As Shinkansen expands, it is expected to enhance the fintech sector's efficiency in Mexico and provide growth opportunities for other startups in the region.
Argentinian startup Nippy lands to Mexico
The startup provides a benefits platform for independent and plans to open its first Nippy Center in Mexico City and extend to Guadalajara and Monterrey. Nippy was founded with the aim to intervene and collaborate with gig economy platforms, such as Uber, Pedidos Ya, Glovo, Rappi, and Delivery Hero. Following a pre-seed funding round of $1 million, the company has grown to over 30 employees and developed an in-house technology and Data Science team. The company is known for its Nippy Centers, described as rest, hydration, and food spaces for workers, where they can also purchase memberships, phone plans, and recharge their devices.
Chilean GrupoTusMaquinas is coming to Mexico
The startup, which developed a specialized tech portal in 2018 to connect machinery with construction projects across Latin America, has secured US$1.2 million in a funding round to support ongoing market growth, the development of tech solutions for the machinery ecosystem, and preparations for the company's expansion into Mexico. The company operates three business lines: ArriendaTuMaquina, CompraTuMaquina, and FinanciaTuMaquina, offering a range of solutions for machinery users in various sectors, including construction, mining, and agriculture.
From Crisis to Opportunity: The Unexpected Rise of Healthtech in Mexico
The pandemic disrupted patient care and access to treatment, leading to an increased focus on healthcare adaptation through technology-based solutions. Virtual appointments, at-home tests, and online services exposed people to a different way of receiving care: cue the emergence of healthtech. While it might lack the high-profile allure of fintech or e-commerce sectors, the potential and significance of healthtech has certainly not escaped the radar of venture capitalists. And the numbers speak for themselves, according to Endeavor and Glisco Partners’ annual report, in 2022, healthtech companies in LatAm raised US$221 million - accounting for 10.7% of all deals.
Mexico is no exception; its health system has been characterized by unequal access, high prices, and low quality of services - in other words - badly in need of disruption for years. And this year US$10 million Seed rounds from Clivi and Medsi are a signal that the market is rip for growth.
Healthtechs of all flavors have emerged to address these chronic pain points. During the pandemic Sofía Salud, founded in 2018, gained popularity, offering health insurance and online services. Through the Sofia app, users can easily access and communicate with their doctors, find specialists for complex issues, and obtain clear information about their coverage. Another notable player is WelbeCare, which specializes in AI-based health management and collaborates with companies to provide healthcare for their employees to develop customized health programs to enhance one’s personal well-being (and productivity). And still, there are even more advanced applications of technology in the space, such as Eva’s cloud-based tool that digitizes radiology processes. With their picture-archiving and communication system (Pacs), medical professionals can quickly view, analyze, and generate reports on patients and their screening results. The software also enables remote operation by radiologists.
Healthtech is being driven by many of the same trends that has made Mexico attractive for other startups: more than half of the country’s 126 million inhabitants are under the age of 34 and 78.6% of the population has access to the internet. It is perhaps no surprise that, according to the Asociación Healthtech México, the sector grew 300% YOY in 2022. The association’s president predicts that by 2023 the market will reach at least US$500 million.
See you for the next edition. Have a question or any feedback? Just hit reply. We'd love to chat!