Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Francisco Alvarez-Demalde, Co-Founder & Managing Partner of Riverwood Capital (US$ 5.8 billion AUM) recently said: "Despite the volatility in capital flows and global investor interest in the region, the opportunity to build and expand technology businesses in Latin America has never been greater."
And well, being on the ground and witnessing the startup scene grow by the day, I can only agree.
Let’s dive into this week's round-up of news from Mexico's startup scene.
Follow The Money
Troquer closes a US$ 3 million venture round
Troquer is a marketplace looking to transform the sustainable fashion sector in LATAM. The platform enables users to give a second life to fashion items, aligning with a growing consumer trend towards environmentally conscious choices. The startup is offering users competitive pricing, an engaging buying and selling experience, and fostering a community engaged with sustainable fashion practices. The investment is expected to catalyze Troquer’s growth, furthering its mission to blend style with sustainability.
Sector: Marketplace
Founders: Ytzia Belausteguigoitia, Lucia Martinez-Ostos Jaye
Investors: Liverpool Ventures, Ananda Ventures
Startups News
Stori launches a credit card with Shein
Shein, the leading fashion e-commerce platform from China, is set to launch its own credit card in collaboration with Stori. This initiative marks a significant move for Shein in integrating fashion services with financial solutions and signifies a step forward in financial inclusion and access to credit products in Mexico. For context, FinTech Stori is one of Mexico’s unicorns, and the aim of serving Mexico's unbanked population.
Resuelve tu Deuda launched Bravo
Bravo, a new credit platform developed by the debt repair company Resuelve tu Deuda, has been launched in Mexico with the aim of revolutionizing the debt settlement market. Bravo's unique approach involves providing credit to clients to pay off their debts at reduced amounts. The platform's goal is to capture 10% of the Mexican market, aiming to settle over 13.6 billion pesos in debts within the next five years. Bravo's strategy includes personalized debt settlement plans and financial education tools to help clients reintegrate into the credit system with improved financial habits.
VC - M&A News
Chilean Teamcore acquired Mexican Pabis Retail
Teamcore, a retail execution technology platform, acquisition of Pabis Retail, a business intelligence firm, is a move to enhance their Advanced Analytics vertical and strengthens their position in the Mexican market. The acquisition unites Teamcore's model of automated and intelligent tasks with Pabis' strong analytics tool, which boasts over 300 integrations with LATAM retailer data sources. Together, they aim to serve over 500 mass consumption and retail companies in the region with a unique solution.
Riverwood Capital closes US$ 1.8B fund
Riverwood Capital new fund will primarily be targeting high-growth technology startups. While the firm invests globally, it has a strong focus on North and Latin America. Riverwood's co-founder & managing partner, Francisco Alvarez-Demalde, highlighted the increasing opportunities in Latin America, noting that despite recent market corrections, the potential for building and expanding tech businesses in the region is greater than ever. The firm, which has seen substantial growth in its Latin American investments, plans to continue supporting the international expansion of its portfolio companies.
Rest of the World
Colombian Ressolve expanded to Mexico
The startup offering voice and text analytics through AI, has expanded its services to Mexican businesses, aiming to revolutionize AI use in the country. The company provides small and medium-sized businesses in Mexico with the ability to analyze calls and chats via various contact points, helping these businesses scale and position themselves in the market. Serving various industries like retail, finance, and telecommunications, Ressolve analyzes over 5 million conversations monthly and offers services like Q&A Management to improve sales agent performance.
French Sodexo chose Mexico
Sodexo, a global leader in food services, has chosen Mexico as the launchpad for its venture into the fintech sector with its new division, Pluxee. This move marks a significant shift from Sodexo's traditional meal voucher business to a more comprehensive corporate solutions provider, covering financial, incentive, and administrative services. Pluxee, part of Sodexo's broader strategy to digitize and enhance employee benefits in 31 countries, has recently obtained authorization to operate as an IFPE (Electronic Payment Funds Institution) in Mexico. This will allow for better tracking of user transactions and the introduction of diverse services. Pluxee is rolling out two key products: one for managing worker allowances and Pluxee Flexible for customizing employee benefits. Starting operations in Mexico, Pluxee aims to manage around 17,000 corporate trips in the fiscal year 2024, showcasing the potential effectiveness of its strategy in the local market. With the backing of Grupo Sodexo, which operates in 53 countries with 500,000 client companies, Pluxee also plans to introduce a credit marketplace in Mexico.
Chilean ETPay launches in Mexico
The FinTech specializing in cardless payment services has announced the launch of its new platform in Mexico. This new solution is designed to enhance the management of electronic transfer payments for businesses, enabling more efficient and secure handling of various transactions, including buyer transfers, recurring payments, and inter-company transfers. A key feature of the platform is its integration with bank reconciliation, allowing merchants to monitor payment statuses in real time. ETPay's entry into the Mexican market addresses the need for an alternative to card payments, offering lower commission rates, reduced fraud rates, and real-time sales receipt. The platform is now available to all clients in Mexico, with current clients including major banks such as Banco Azteca, Banorte, BBVA, Citibanamex, Santander, and HSBC.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud
It’s always been great, funds just invested in cash burning companies run by spoiled kids .
There are tons of great companies.