Ep. 62: Redefining Boundaries - How Startup Innovation is Transforming Mexico's Ecosystem
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
This week's developments in the Mexican startup landscape highlight two emerging trends: 1) the symbiosis of technology and unique market needs with Ukma’s recent seed funding, exemplifying how technology like 3D printing is elevating traditional sectors like art and design, and 2) Ugandan FinTech Asaak's acquisition of FlexClub Mexico revealing the increasing globalization in the startup world and unconventional mix of markets.
It's not just about new companies doing new things; it’s about startups redefining what’s possible across a multitude of sectors and markets, pointing toward a tech-focused future for Mexico.
Follow The Money
Ukma raised an undisclosed seed funding
The “Cultech” startup specializing in designing, manufacturing, and marketing sculptures, has successfully closed a seed funding round led by CANVAS Partners. The investment is set to enable it to consolidate its presence in Mexico while also expanding internationally. The funds will accelerate the company's technological development, including 3D printing with recycled polymers and biomaterials for its new collections. As part of its growth strategy, Ukma aims to collaborate with leading companies in hospitality, real estate, and interior design sectors, all while advocating for the global recognition of Mexican design through its participation in international design and interior trade shows.
Sector: CulTech
Founders: Alonso del Valle
Investors: Canvas Partners
Startups News
Jüsto leverage AI to offer customers personlaized shopping experiences
Mexico's first fully digital supermarket is leveraging Artificial Intelligence (AI) and data analytics to revolutionize a stagnant industry. The platform offers customers personalized shopping experiences and fresher products by harnessing AI technology. With smart data analytics, Jüsto manages optimal inventory levels to reduce waste and precisely times the ripening of fruits and vegetables. It also employs a "dark store" model, where dedicated warehouses process user orders, and uses eight different storage temperatures to extend the shelf life of products. This focus on technology ensures timely, complete deliveries and optimizes pricing, benefitting both the customer and Jüsto's mainly small-business suppliers.
Nubank will offer personal loans in Mexico
The FinTech, is expanding its offerings in Mexico with the introduction of quick personal loans available in under five minutes through its digital platform. This strategic addition follows the successful launch of Nubank's savings account service in Mexico, which garnered over one million users in just a month. The move comes as the company reports record revenues of US$ 1.9 billion in the last quarter and eyes Mexico as a significant growth market.
Kogni aims to accelerate the digital transformation of local businesses
Leonardo Estrada, who previously co-founded the Hola Cash platform, launched Kogni to serve as an "AI translator" for businesses, helping them identify and integrate relevant AI solutions from a network of over 6,000 AI companies. The startup offers a range of services including brand awareness, sales growth, financial strategy, legal advice, and data analytics. It even features its own generative AI integrated with WhatsApp. This comes as AI adoption in Mexico is on the rise, with a recent study indicating that 40% of companies in the country have already implemented AI technology.
Accelerators - M&A News
Ugandan FinTech Asaak has acquired FlexClub Mexico
The startup specializing in asset financing for mobility workers in emerging markets, has acquired FlexClub Mexico for an undisclosed amount. The move marks Asaak's debut in the Latin American market, following its claim of achieving profitability in Uganda. Rebranded as Asaak Mexico, the acquired entity aims to address financial challenges in a market prone to informality and fraud. Asaak plans to leverage FlexClub Mexico's existing partnerships and customer base to expand its incremental credit solutions, which cover not just vehicle financing but also additional credit lines for fuel, repairs, and other essentials.
Miami Innovation Week
Miami Innovation Week is an immersive experience into Florida's entrepreneurial ecosystem, scheduled for the week of November 27th. The event will bring together around 15 entrepreneurs from across Latin America for valuable meetings with local venture capital firms, successful startups, and innovative companies. Participants will gain insights into the innovation journeys shaping the region. Learn more here.
E-commerce is driving the expansion of industrial infrastructure in Mexico
The boom in e-commerce is significantly driving the expansion of industrial infrastructure in Mexico, as companies capitalize on strategically located logistics, storage, and distribution hubs. For every $1 billion in eCommerce growth, an additional one million square feet of industrial space are needed, according to CBRE. The number of industrial parks has increased from nearly 350 in 2020 to an estimated 425 this year, particularly in the northern, central, and Bajío regions of Mexico. A report by Monex Financial Group predicts that spaces dedicated to digital commerce logistics will at least double by 2025.
See you for the next edition. Have a question or any feedback? Just hit reply. We'd love to chat!
What is “cultech”? The Google machine just turned up a supplement company 🤷🏽♀️