Ep. 67: FinTech Nexu US$20 million Series B
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
This week's main announcement is undeniably Nexu’s US$ 20 million Series B closing. In addition, we’ll cover Stori pushing the financial envelope further, introducing a high-yield savings account, and challenging traditional banking. On the AI front, the joint venture between Wizeline and Tec de Monterrey promises to elevate Mexico's capabilities in the sector. And as usual, international startups like Galgo, Luzia, Wareclouds, and Nax Solutions are converging on Mexico.
Follow The Money
Nexu raises a US$ 20 million Series B round
The auto financing startup is addressing the challenge of scarce auto financing in Mexico, allowing car buyers to receive instantaneous decisions on financing at dealerships. This service improves the buying experience and raises dealership conversion rates. In Mexico, auto financing is limited, with less than 60% of new vehicles and under 2% of used vehicles benefiting from it. Nexu's unique risk algorithm claims to double the approval rate compared to conventional banks.
Sector: FinTech - Auto
Total raised to date: US$73 million
Founders: Abdon Nacif, Fernando Gómez Arriola
Investors: Valor Capital Group, Fintech Collective, Endeavor Catalyst, Altos Ventures, Wollef, Squareone, Clocktower Ventures, Gilgamesh, FJ Labs, Ivernet, Capem
Startups News
Bitso partners with Tec de Monterrey
The crypto FinTech has partnered with Tecnológico de Monterrey to foster fintech talent and entrepreneurship in Mexico. The collaboration aims to launch initiatives and strategies that drive joint projects. Inspired by the influence of "Tech Mafia" groups, where leaders from successful tech companies branch out to establish other ventures (like the famous "PayPal Mafia"), Bitso envisions a similar positive impact on Mexico's tech ecosystem.
FinTech unicorn Stori introducie a new savings account
The new savings account will offer a market-leading 15% annual yield. This venture comes after the acquisition of the Sociedad Financiera Popular (Sofipo) Savvi. Marlene Garayzar, Stori's co-founder, stated in an interview with Forbes México that the Sofipo license allows them to diversify their product offering, starting with the savings account. Garayzar emphasized the urgency to cater to the significant portion of the Mexican population who either don't save or do so informally. Compared to traditional banks, which offer an average yield of 2.70%, Stori's offering aims to protect savers against inflation.
VC - Accelerators News
Wizeline launches the first Generative Artificial Intelligence Laboratory in LatAm
Wizeline and Tecnológico de Monterrey have partnered to launch the first Generative Artificial Intelligence Laboratory (G.AI.L) in Latin America, setting a precedent in the region's technical sector. Located on Tec de Monterrey's Guadalajara campus and backed by a MXN $9 million investment from Wizeline, the G.AI.L aims to blend academic research with real-world applications of Generative AI. The facility, opening in 2024, will function as both a research center and a training hub, uniting Wizeline's technological prowess with Tec's academic excellence. Students will be immersed in practical experiences like hackathons and internships, bridging theoretical and applied AI. With AI investments projected to surge over the next few years, collaborations like this are primed to play a crucial role in the industry's evolution.
Rest of the World
Chilean Galgo comes to Mexico
The FinTech specializing in offering financial services to underbanked segments, recently raised US$40 million in a round led by the Mexican fund Nazca. The startup plans to use this capital to expand its operations in countries including Mexico, emphasizing its growth potential in the short to medium term. Founded in 2018, Galgo focused on providing digital financing solutions for motorcycle purchases.
Spanish Luzia lands in Mexico
The startup recognized for its AI assistant working on platforms like WhatsApp and Telegram, has garnered €9.5 million in funding to bolster its foothold in the AI realm, notably in Latin America. While the company has significant traction in Spain, it now wants to make strides in Mexico.
Chilean Wareclouds debut operations in Mexico
The logistics startup Wareclouds, after securing a USD $2 million investment, is set to debut operations in Mexico. Wareclouds's approach involves a digital platform connecting businesses to households for inventory storage, optimizing logistics processes. Drawing from their Brazil experiences, the team anticipates a similar trajectory for Mexico, backed by a significant corporate partnership to ensure smooth logistics network establishment.
Spanish Nax Solutions expands to Mexico
The AgTech startup is broadening its reach by introducing its innovative agricultural technology to Mexico. Collaborating with Grupo Azucarero del Trópico, Nax Solutions has rolled out a sugarcane moisture monitoring model that offers laboratory-level precision. This advanced system empowers farmers in Mexico to diminish costs related to pre-harvest sampling, marking a significant step in agricultural efficiency in the region.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud