Ep. 58: Will InsurTech be the hot trend in 2024?
Welcome to Miranda Scenius: Your weekly newsletter on technology, innovation, and startups in Mexico.
The LATAM startup investment market is starting to show positive signs of life, and July was the best month of the year with a volume of investment almost 10% higher than January, according to data from Sling Hub.
And August is starting strong with Momento Seguros announcing a US $10.5 million investment to launch its operation in Mexico. While being a broad sector, InsurTech has the potential to be the next FinTech in 2024, and we started digging on the subject 3 weeks ago with our deep dive on the health coverage disruption model.
Speaking about FinTech, the market might start to consolidate, with bigger players acquiring startups founded during the 2019-21 boom. In this edition we will cover Albo’s acquisition of Deltai for US $20 million and the strategy behind the deal.
Follow The Money
Momento Seguros raised US $10.5 million
The startup, aiming to revolutionize the insurance sector in Latin America by offering personalized pricing, flexible coverage options, and facilitating payments for unbanked customers, has recently acquired a license from Mexico's CNSF and raised $10.5 million to commence its operations. Despite challenges in the insurtech market, analyst Rodrigo Maranhão from Boston Consulting Group has emphasized the potential of mergers and acquisitions in the sector's growth.
Sector: InsurTech
Total raised to date: US$10.5 million
Founders: Lois Rogel, León Bartolomé, Andrés Guerrero
Investors: Foundation Capital, HSCM Ventures, Gilgamesh Ventures, Picus Capital, Wollef, Clocktower Technology Ventures, BoxGroup, GFC, Y Combinator.
Startups News
Bitso has integrated Payoneer as a cash deposit method on its platform
Now, Bitso users can swiftly transfer their payments received via Payoneer to their Bitso account. This collaboration facilitates users' connection to both companies' services. Payoneer is a global digital financial solutions platform, caters to freelancers and SMEs, allowing them to make and receive international payments easily.
VC - M&A News
Fintech Albo has acquired Delt.ai for US $20 million
Founded in 2019, Delt.ai specializes in creating business management tools and has processed over 130,000 transactions through its platform, granting more than US $90 million in business loans. This acquisition aims to merge the expertise of both startup, with Albo's SME customers set to particularly benefit from Delt.ai's business loan products. Since gaining authorization from the National Banking and Securities Commission in May 2022, Albo has seen rapid growth, amassing over 2 million users and achieving transactions exceeding $5 billion.
Eduardo Haro and Fernando Chavez Ponce announced the launch of Eunoia Capital
The Mexican investment firm began operations in June after successfully completing its fundraising round in the first half of the year. Eunoia aims to acquire mid-sized companies in Mexico and engage in active management to drive their future growth.
Rest of the World
Revolut aims to expand its Revolut Lite to Mexico
The app's "lite" version will allow free transfers between Revolut customers through its P2P system, card transfers, and international bank transfers. In relation to the US, Revolut allows non-US citizens legally residing in the country without specific visas to open bank accounts. This service can aid in the remittance corridor between the US and Mexico, where approximately $60 billion is transferred annually. In Mexico, Revolut is currently developing its first international transfer product and has already announced a waiting list. The firm received a money transmitter license from the National Banking and Securities Commission (CNBV) in December and is expected to start its operations in Mexico soon.
Chilean Capitaria to land in Mexico
Despite being in Mexico for only four months, the company aims to acquire over 200 clients in its first year and transact amounts totaling US $500 million. Pedro Torrealba, the general manager of Capitaria, states that they chose Mexico due to its market size, which is ten times larger than Chile's, alongside similarities in the broker industry behavior and the liquidity of the dollar-peso exchange on a regional level.
Chilean Acid Labs has begun operations in the Mexican market
With an investment of US$ 1.2 million and a starting team of 21, Acid Labs aims to stand out in the tech services sector with its diverse technology portfolio. Acid Labs specializes in e-commerce platform implementation, growth optimization, staffing of highly qualified professionals for key projects, and high-quality cloud services. The CEO, Álvaro Rojas, views Mexico as a significant opportunity given its position as Latin America's second-largest IT services market.
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