Ep. 73: Zubale and Solvento pile up cash before closing 2023
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
The big news is probably Zubale’s US$25 million Series A extension to keep growing in Mexico and Brazil. Not forgetting Solvento’s newest US$ 50 million credit line for its AI-powered audit software and loan product expansion. On the investor side, InDrive announced a $100 million CVC to invest in LatAm startups. Last but not least, Farmacias del Ahorro joined Walmart and Airwallex by acquiring Tu Dinero Digital for its FinTech license in Mexico.
Let’s dive in!
Follow The Money
Zubale secures a US$ 25 million Series A extension round
This new funding follows a US$ 40 million Series A round in 2022 and will be used to enhance its technology offerings and expand its presence in Mexico and Brazil. The startup, which initially focused on e-commerce order fulfillment, now offers three key products: FlexiFleet a gig worker marketplace, Consumer Connect for improves consumer shopping experiences using WhatsApp, and Fulfillment Optimizer an end-to-end modular software to increase productivity in e-commerce operations. Zubale's total venture funding is now US$ 73 million and though Sebastian Monroy declined to say the company’s valuation following the new investment, he did say to TechCrunch that it “multiplied our valuation” compared to the Series A in 2022.
Sector: E-commerce Platform
Total raised to date: US$73 million
Founders: Sebastian Monroy, Allison Campbell
Investors: QED Investors, NFX
Solvento secured US$ 50 million debt & US$ 3.5 million in a seed extension
Solvento is a FinTech startup in the logistics sector. With the new round of capital come the official launches of Solvento Audita, an AI-powered audit and billing software designed to bring transparency to billing across the supply chain in addition to supporting the expansion of their loan product in Latin America. Solvento Audita integrates with transportation management systems and apps like WhatsApp to automatically recognize and verify documentation for billing, replacing the manual processes typically used by carriers and brokers.
Sector: FinTech
Total raised to date: US$10 million Equity + US$50 million Debt
Founders: Jaime Tabachnik, Guillermo Bosch, Pedro Bosch
Investors: Quona Capital, Dynamo Ventures, Zenda Capital, Ironspring Ventures
VC - M&A News
InDrive announces a US$ 100 million CVC fund
The mobility and urban services platform has announced the creation of a corporate venture capital division aimed at investing up to US$ 100 million in promising Latin American and emerging markets startups. InDrive will focus on local market startup with global expansion potential, mostly investing in Series A rounds. Since its launch, InDrive has already attracted over 300 contacts, venture capital firms, and startups, predominantly from Latin America, indicating a robust interest and willingness in the market for innovation. Andries Smit, Vice President of New Ventures at InDrive, aims to leverage his investment and business development experiences to strengthen innovative startups and help them in their expansion plans.
Farmacias del Ahorro acquires Tu Dinero Digital
The Mexican pharmaceutical chain Farmacias del Ahorro has acquired the electronic payment funds institution Tu Dinero Digital, with the approval of the National Banking and Securities Commission (CNBV). This acquisition involved significant changes in Tu Dinero Digital's leadership. Tu Dinero Digital becomes the third acquisition in the regulated FinTech sector in Mexico, following similar moves by Walmart and the Australian unicorn Airwallex. Farmacias del Ahorro's acquisition of Tu Dinero Digital marks its entry into the regulated FinTech space.
Rest of the World
Canadian NowVertical expands to Mexico
NowVertical Group is a Vertical Intelligence (VI) software and services provider that delivers data, technology, and artificial intelligence (AI) solutions into private and public verticals globally. Its expansion into Latin America will focus on Peru and Mexico. In Mexico, the company is working on data governance consulting with DMX and has secured contracts with prominent Mexican retail conglomerates Liverpool and Coppel, in partnership with Google. These contracts aim to optimize retail operations using data and AI technologies. Additionally, NowVertical has secured a contract with Arcos Dorados, McDonald’s largest independent franchisee in Latin America and the Caribbean, for cloud data engineering and data science projects.
São Paulo based Vammo lands in Mexico
Vammo, an electric mobility startup, has recently closed a Series A funding round of US$ 30 million. The startup, founded by Jack Sarvary (ex-Rappi) and Billy Blaustein (ex-Tesla), focuses on renting electric motorcycles, including battery exchange and maintenance services, primarily to motorcycle couriers in São Paulo. Vammo plans to use the new capital to expand its operations within São Paulo and to two new markets: Colombia and Mexico.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud