Ep. 64: Mexico is not just witnessing growth; it's experiencing a holistic evolution in its startup culture.
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
This week, the big news comes from the M&A activities happening in the ecosystem. Players like Kapital making bold acquisitions, signifying a broader ambition than just product expansion. And Kolors' acquisition of Urbvan positioning the company to redefine commuting solutions in the coming years. From the investment side, Attom Capital’s initiative will fill a current vacuum, suggesting that the Mexican startup scene is advancing in its maturity. Mexico is not just witnessing growth; it's experiencing a holistic evolution in its startup culture.
Dive into this week's digest to grasp the full spectrum of these exciting developments.
Follow The Money
FinTech Alza secures US$ 6.6 million
Alza, founded by Mexican Arturo Villanueva, is poised to redefine financial inclusivity for Latin and Central American immigrants in the U.S. Leveraging Villanueva's extensive experience as a former Stripe executive, the startup offers FDIC-insured checking accounts, debit cards, and a standout feature: the capability to send cross-border remittances to over 20 countries in Latin America, streamlining a typically complex process. The service, designed to mitigate challenges immigrants face, provides flexible verification processes, accepting varied ID forms, and offers bilingual support. Although not a bank itself, Alza operates within strict financial regulations and aims to serve the increasing demographic of immigrants, recognizing the considerable economic output and potential of the Latino community in the U.S. As it appears, the round was closed in late 2021 but only made public this week in TechCrunch with the startup going out of stealth mode.
Sector: FinTech
Total raised to date: US$ 6.6 million
Founders: Arturo Villanueva, Andrew Mahon, David Meadows
Investors: Thrive Capital, Henrique Dubugras, Sebastian Mejia, Cristina Cordova, Sarah Heck
Startups News
Nelo entered a strategic alliance with Paymentology
Nelo is a consumer payment platform in Mexico, aiming to enhance financial inclusivity in the country. This partnership will bolster Nelo’s Mastercard support for transactions via Google Wallet and the rollout of physical cards. With over 6 million online transactions, Nelo’s intent is to revolutionize Mexico's credit sector, introducing a card featuring unique partial refunds. Leveraging Paymentology's robust infrastructure, Nelo plans to debut its “Tap to Pay” service and expand its customer reach.
VC - M&A News
Kapital's bold move to buy a bank
The FinTech has acquired Banco Autofin México (BAM), a banking institution with a focus on retail and SME markets, with an initial investment of US$ 50 million. Kapital aims to roll out an array of products including credit cards, automatic investments, and AI solutions, while also enhancing its digital channels. The CEO of Kapital, René Saúl, emphasized that the move isn't just about product expansion but shaping a more innovative, digital, and user-centric financial market.
Kolors acquired Urbvan for US$ 12 million
Kolors is a startup that bridges intercity bus riders with bus drivers, while Urbvan is a B2B van pooling service. Urbvan will enhance Kolors' offerings by providing door-to-door solutions, connecting business commuters not only intercity but also to in-city destinations like corporate hubs and business parks. This acquisition, funded by an undisclosed pre-Series B round that doubled Kolors' valuation, positions the company to potentially transport over 5 million passengers by 2023's end. For a more detailed view, TechCrunch did a great coverage of the deal here.
Attom Capital launches to address the current gap in the secondary market
Recognizing the immense growth the region has seen over the last decade, Attom Capital's founders have identified the lack of liquidity options for founders, angel investors, and VCs as a key challenge to solve. While secondary markets thrive globally, Latin America remains underserved due to complexities in secondary transactions and regulatory challenges. Their mission will extend beyond investing, fostering a cycle where stakeholders can reinvest in the region's growing startup scene, promoting continuous development. An interesting initiative to follow and another sign the market is maturing.
U.S. Tala acquired Mexican Jefa
This acquisition will combine Jefa's dedication to catering to underserved women in LatAm and Tala's robust reach in serving the underbanked. With the integration of Jefa's female-focused financial services and Tala's vast credit infrastructure, the joint entity is poised to transform financial systems into one that is more inclusive, and innovative, all while working towards eradicating financial inequality.
Rest of the World
Coinscrap Finance enters Mexico’s market
The Spanish Fintech has marked its presence in the Mexican financial scene with its distinct AI capabilities. Recognized for translating banking data into actionable insights, the company intends to provide individuals and businesses in Mexico with tools for improved financial management. Under the guidance of CEO David Conde, the company's strategy in Mexico also includes collaborating with local financial entities and participating in industry events.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud