Ep. 66: So Back or Dead Cat Bounce?
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Ok, maybe we are not “so back” yet. You may have noticed the absence of last week's newsletter edition. Frankly, I felt there was a limited amount of news truly worth sharing. The past two weeks have been somewhat quiet. However, one significant trend has been the continuous expansion of LATAM startups into Mexico and vice versa.
Let's experiment with Substack's latest poll feature. For those with a predictive flair, I pose the question:
Is the Startup scene “So Back” or the last few months were more of a “Dead Cat Bounce” move?
Startups News
OneCarNow! partners with DiDi
This alliance provides DiDi-registered drivers with access to high-end vehicles, offering flexible payment options and removing traditional barriers. The collaboration not only streamlines the driver experience but also aims to improve the service for users. Additionally, drivers have the option to use these vehicles for personal activities, adding to their benefits. Both companies continue to focus on expanding their offerings and benefits in the mobility sector in Mexico.
Vultr is set to establish a data center in Mexico City
With the aim to enhance the use of AI and bolster the emerging digital startups in Mexico, this initiative is part of a broader effort to bring AI capabilities to small and medium-sized businesses in traditionally underserved markets, including Africa, Southeast Asia, and Latin America. Kevin Cochrane, Vultr's marketing director, emphasized the economic advantages for entrepreneurs, including a potential 40% reduction in cloud computing costs.
Luuna to opens its first factory in Mexico
This move enables the company to increase its output from 150,000 mattresses annually to one million within the next eight months. The establishment of the factory, located in the State of Mexico, allows Luuna to oversee its entire supply chain, ensuring better product control and cost reductions. Although initially a digital brand, the consumer desire to view and test the mattresses have led Luuna to expand into physical retail, with plans to reach 90 physical locations across 24 states.
VC - Accelerators News
Latitud is launching a new fund
Announced during its São Paulo event, the fund has already attracted prominent regional founders and investors including Carlos García of Kavak and David Vélez of Nubank. So far, it has completed the initial fundraising (first closing) for a new pre-Seed venture capital fund focused on Latin America. The target size for this first phase of fundraising is $25 million, indicating the amount the fund aims to raise in this phase. Over the next three years, with this fund, Latitud plans to spearhead 40 pre-Seed rounds and co-invest in 20 Seed rounds. Each pre-Seed investment is set to be around $250,000, with a quarter of the fund earmarked for follow-up investments.
Purina launch the 'Unleashed' acceleration program
Purina is a pet care brand within the Nestlé group which is hoping to target petcare startups globally with its accelerator. For the first time, the initiative has expanded its reach to include startups from Mexico. Aimed at accelerating ten more startups by 2024, the program offers growth opportunities under the guidance of dedicated mentors. Past collaborations include successful Portugal-based startups Petable and Knok. Purina's newest program aims to further its footprint in emerging markets like Mexico and Brazil.
Impact Ventures PSM expand into LatAm
Formerly known as the impact investment area of Promotora Social México, Impact Ventures PSM has announced its expansion into Latin America, targeting socially impactful investments in the region. The announcement highlighted the significance of impact investments while sharing some success stories from its active portfolio that includes 18 companies such as Colombia's Klym and Argentina's TicMas. Impact Ventures PSM's expansion underscores its commitment to fostering positive social change throughout the region.
Rest of the World
US-based Liquido is coming to Mexico
The FinTech is looking to bolster its operations in Mexico, targeting the integration of a unique payment system via WhatsApp. During its beta phase in Mexico, the company processed US $350 million in transactions and has set a goal to exceed USD $5 billion by 2024. This move aims to tap into the potential of Mexico's digital commerce landscape, offering users a streamlined shopping experience while ensuring maximum security.
Colombian Cobre to land in Mexico
The FinTech offers a treasury platform to help CFOs centralize, digitize, and automate their payment processes. It recently has secured a US$ 13 million investment led by Kaszek. After initially targeting larger corporations in Colombia and experiencing significant growth, Cobre intends to expand its offerings to cater to smaller businesses in the region and plans to enter the Mexican market in early 2024.
Mexican Rocket Lab goes to Chile
The AdTech startup has expanded its operations to Chile, collaborating with major clients like retail giant Falabella and digital card Tapp from Caja Los Andes. The company focuses on promoting mobile app growth through in-app advertising. Carola Aliaga, the Director of Revenue Latam at Rocket Lab, emphasized the vast opportunities in Chile, noting the country's strong tech incubation and its status as one of the most banked regions in Latin America, aiding in app payment developments.
Mexican Bravo expands to Colombia
The FinTech, known for its debt settlement solutions, is expanding into Colombia with ambitions to advise over 600,000 individuals and reincorporate millions of dollars of overdue debts into the financial system by 2024. The company plans to invest US$ 40 millions in Colombia and aims to integrate 27,000 users, settle over 24,000 debts, and grant about 7,500 loans within the next 15 months. Bravo's approach helps clients consolidate multiple debt commitments into a single reduced payment, offering eligible clients loans after seven months in their program.
Cool Stuff
In this week's recommended read, RestOfWorld showcased a Ugandan startup taking on the Mexican market. Big fan of this expansion stories between startups from LatAm, Africa, and Asia!
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud