Ep 56: Should we trust the "We Are So Back" narrative?
Welcome to Miranda Scenius: Your weekly newsletter on technology, innovation, and startups in Mexico.
When the news broke that mattilda closed its Serie A, the (small) Mexican startup Twittosphere started debating if we should categorize them as an EdTech or a FinTech. We’re stating for the record that mattilda is a FinTech focused on the education sector. However, let’s start another fight: should we write its name with a capital M or not?
Jokes aside, the more important point is this might be the first sign of the return of growth-stage funding. With public technology stock markets back to their all-time high, many are feeding the “We Are So Back” narrative. But even if it was the case, private markets always lag behind a few quarters, and LatAm a few years. So, let’s be patient.
Follow The Money
Mattilda closes a US$19 million Serie A
The FinTech focuses on the education sector and provides payment processing and collections management for private schools. The company also offers a loan program for schools and has grown its student base to 35,000. The team plans to use the new funding to expand both within Mexico and across Latin America, with Colombia hinted as a possible first location.
Sector: FinTech
Total raised to date: US$29 million Equity + US$10 million Debt
Founders: José Agote,Juan Pablo Bravo, Adrián Garza, Ileana Gómez
Investors: DILA Capital, Fintech Collective, QED Investors, GSV Ventures
Startups News
Jüsto is expanding to Colombia and Chile
Since its founding in 2019 and without any physical store, Jüsto has become a key player in the supermarket sector in Mexico. And after expanding to other countries, such as Brazil and Peru, the startup now aims to reach Colombia and Chile, expanding its presence all over the Latin American market. In its quest to dominate the region, the startup can tap into an investment round of US$152 million which it closed in April of last year.
In some ways, it feels like it is intentionally following the footsteps of Jokr, a grocery delivery platform from Luxembourg, that, after rapidly expanding throughout LatAm, has since pulled back from the region, systematically abandoning Mexico, Peru, and Colombia, with only operations in Brazil. (Note, somewhat perplexingly, Jokr originally left the US market for LatAm).
Hey Banco, the digital arm of Banregio, has acquired its own banking license
This move makes Hey Banco one of three digital entities with a banking license belonging to traditional banks in Mexico, along with Bineo from Banorte, and Openbank from Santander. Since its launch in 2019, Hey Banco has amassed over 600,000 customers with a product line that includes credit and debit cards, and investments, among others.
Rest of the World
Chilean Envíame starts operations in Mexico
The logistics marketplace startup aims to build the largest logistics ecosystem in the country to accelerate e-commerce. The company integrates over 150 last-mile operators across Latin America, and it has incorporated 20 logistics operators in Mexico, with plans to increase that to 30 by the end of 2023. Envíame's decision to expand in Mexico was motivated by the country's 23% growth in e-commerce, with logistics being a significant issue for many online stores. Mexico City accounts for the majority of online deliveries at 33%, followed by Nuevo León, Jalisco, Veracruz, and Puebla.
Chilean Mineral Forecast expands into Mexico
The Startup provides AI-based software to help mining companies process exploratory data. The software allows companies to more quickly identify areas with high mineral potential, reducing costs and time. In Mexico, Mineral Forecast works with Canadian gold and silver company First Majestic, on its San Dimas operation in Durango.
Shaping the Future of Health Coverage: InsurTech's Innovative Approach in Mexico
It seems like everything is ripe for disruption nowadays. In addition to re-thinking how we offer care, InsurTech is reengineering how we pay for care. In 2020 in Latin America, according to a study by MAPFRE, the region’s average penetration rate was 3.1%. This is a third of Europe and a quarter of the United States, a fact that entrepreneurs have not overlooked. The organization also estimates that InsurTech grew 20% YoY from 2018 to 2021.
Machine learning, artificial intelligence, and advanced data analytics provide up-to-date information and analysis of health profiles, allowing for product greater optimization, increased risk management, and more accurate underwriting. Data that comes from everyday health equipment such as wearables, along with tracking and lifestyle apps, give important insight as to changes in health status and lifestyle, escaping the never-ending manual process of collecting descriptive information and carrying out annual checkups. But, given that insurance is a well-established sector, new user acquisition costs can quickly creep up especially if going after corporate clients.
There are various key players including Meddi, which offers a digital platform to help companies to monitor employee health, provide health coverage for a range of events, and offer incentives to those who practice healthy lifestyles, including reduced premiums on their insurance. Betterfly, originally from Chile, now also has offerings in Mexico, offering ‘dynamic insurance’ through which coverage increases as you engage in healthy practices. Sofia Salud, a local startup, recently announced in April that in addition to offering insurance for individuals, it would offer coverage directly to SMEs.
For context, only 49% of the Mexican population has access to some type of health coverage, and only 5% has access to private health insurance, according to the Organization for Economic Cooperation and Development (OECD). In order to change this not only will startups have to offer attractive products, but they will need to understand the main drivers of this statistic.
See you for the next edition. Have a question or any feedback? Just hit reply. We'd love to chat!