Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Another week, another Series A. This time it’s Galactic Holdings / TruBit turn to announce the good news. This round shows confidence from investors and indicates a broader acceptance and normalization of crypto as part of the region's financial future. Also worth noting on the FinTech front is Creze's newest line of credit from BBVA Spark, and Wise's pursuit of a fintech license in the country.
Let’s dive in!
Follow The Money
Galactic Holdings / TruBit secures a US$ 6.25 million Series A
The Startup aims to make crypto services widely accessible in the region through TruBit and its comprehensive suite of products including a trading platform, payment solutions, and the Moneta stablecoin. Having achieved significant integration with financial systems across LATAM and boasting the largest crypto trading volume in the region, the team will use the new capital to continue its growth by building strong local teams, and expanding the TruBit ecosystem, including the introduction of OTC services and other crypto solutions specifically designed to address the pain points of both retail and institutional users. To learn more about Galactic Holdings’ journey, check out our Deep Dive analysis here.
Sector: FinTech - Web3
Total raised to date: US$16.25 million
Founders: Maggie Wu, Bowen Z.
Investors: Galaxy Interactive, DragonFly, SHK
Creze secures US$ 5.7 million line of credit
The FinTech specializing in loans for SMEs, has secured a US$ 5.7 million credit line from BBVA Spark to enhance lending to Mexican SMEs. This strategic funding will allow Creze to further contribute to the Mexican economy by addressing the financing gap facing SMEs, with only 10% obtaining formal credit. The collaboration is expected to bolster Creze's role in promoting economic stability and growth through technology-driven financial solutions for Mexican SMEs, generating approximately 72% of jobs in Mexico and contributing more than half of the Gross Domestic Product (GDP).
Sector: FinTech
Total raised to date: US$5.7 million Debt
Founders: Bernardo Prum, Andrés Pedroza Robles
Investors: BBVA Spark
Startups News
Kavak is halting its operations in Peru and Colombia
The pre-owned car marketplace is said to be refocusing its efforts on more profitable and growing markets. For the record, this move follows the startup's aggressive expansion, from launching 4 new countries in 2022 (Colombia, Peru, Chile, and Turkey), to opening a vehicle reconditioning plant in Colombia in May of this year. Let’s hope that Mexico’s first unicorn will finally get back on track in 2024 after two turbulent years.
Wise is planning to apply for a fintech license in Mexico
The digital platform for international money transfers is planning to apply for a fintech license in Mexico to expand its product offerings beyond remittances. Efraín Florencia, head of banking at Wise in Mexico, expressed the company's intention to offer a full range of Wise's services available on its global platforms, such as multi-currency accounts and debit cards, to enhance user experience and compete with other fintechs in Mexico. This move is driven by Mexico's significant position in global remittance inflows, which saw over US$ 47 billion in the first nine months of the year, a 9.5% increase from the previous year.
VC - M&A News
Argentinian VC Alaya Capital comes to Mexico
Alaya Capital, an Argentine venture capital firm known for investing in early-stage software companies in Spanish-speaking Latin America, has expanded its presence to Mexico, appointing Bruno Pérez to lead growth efforts from Mexico City. With a strategy of investing between US$500K to US$1.5 million, Alaya aims to support software companies poised for regional growth.
SVB is making a comeback in LATAM
Silicon Valley Bank (SVB), after being acquired by First Citizens, is actively working to regain its Latin American clientele and is searching for a Vice President of business development to focus on attracting new startups in the region. Despite the challenging market conditions and the transfer of funds to other banks and fintechs during SVB's crisis, the management team believe they can build back those links with local founders. Now, with the stability brought by the First Citizens banner and its focused approach to startups, SVB is hoping for a return of funds and is dedicated to continuing its decade-long involvement with Latin American founders.
Rest of the World
Argentinian Extendeal to expand its operations in Mexico
The startup disrupting the pharmaceutical industry, announced it has raised $7.5 million to expand its operations in Mexico and Colombia. The startup aids pharmacies by comparing real-time drug prices from various wholesalers to ensure the lowest costs. With technology at its core, Extendeal's goal is to become a strategic partner for pharmacies, streamlining their purchasing processes and fostering competition by providing greater visibility in supply and demand, and ultimately transforming the industry by enabling choice and challenging the traditional control over pricing.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud
"The Startup aims to make crypto services widely accessible in the region through TruBit and its comprehensive suite of products including a trading platform, payment solutions, and the Moneta stablecoin."
Did investors see what happened to LUNA stablecoin? Why would you ever invest in such a scheme?
Amazed by some of those investments.