Ep. 74: Yalo raises $20M to build ‘c-commerce’
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
The Mexican Tech scene is closing the year with some big checks. This week we cover Kapital US$ 40 million Series B and Yalo US$ 20 million Series C extension. By the way, Yalo is another good example that Mexican startups can go global and build cutting-edge technologies.
Talking about building, Airtm is once again featured for a new release, this time with U.S. trading app Hapi. While they might be less spotlighted in the news for raising money, Airtm is part of this growing group of Bootstrapped (or little funded) startups who have been heads down all 2023 building their dream.
Keep reading for more and happy Christmas!
Follow The Money
Yalo closes a US$ 20 million Series C extension
Yalo is an AI-driven conversational commerce platform. This investment will bolster Yalo's global position in a market estimated to reach US$ 130 billion in emerging economies. Serving over 2.6 million merchants and 100 million customers, Yalo is transforming business-customer engagement with AI-powered conversations on platforms like WhatsApp. The team, which works with major clients like Coca-Cola and Nestlé, is tapping into the vast potential of conversational commerce, especially in Latin America where WhatsApp is widely used.
Sector: Conversational Commerce
Total raised to date: US$93 million
Founders: Javier Mata
Investors: Glisco Partners
Kapital raises an oversubscribed US$ 40 million Series B
The FinTech also secured US$ 125 million in debt financing. This successful financing follows a US$ 23 million Series A round, a US$ 45 million credit line in May 2023, and the acquisition of Banco Autofin México S.A. in September 2023. The team is building an integrated technology platform that offers sophisticated enterprise technology to SMEs, leveraging data and artificial intelligence. This includes real-time cash flow management through dashboards. The new capital will be invested in R&D and product development to enhance cross-border offerings and expand product ranges for better data analysis. Kapital currently serves 80,000 clients in Mexico, Colombia, and Peru.
Sector: FinTech
Total raised to date: US$70 million Equity + US$ 125 million Debt
Founders: Rene Saul, Fernando Sandoval Oseguera, Eder Echeverria
Investors: Tribe Capital, Cervin Ventures, Tru Arrow, MS&AD Ventures, and Alumni Venture
Startups News
Airtm announces integration with U.S.-based Hapi
Hapi, an app for trading stocks in the U.S. market, and Airtm, a digital dollar account enabling transactions in over 190 countries, have announced their integration, allowing Latin Americans easy access to the U.S. stock market. This collaboration enables any Latin American to invest in major global companies and manage their funds swiftly from anywhere in the world. Hapi's users can now add funds to their accounts and withdraw money within minutes using Airtm, which offers over 400 ways to acquire and convert digital dollars to local currency. Hapi's CEO, Dusko Kelez, emphasizes their mission to democratize access to the stock market and bring prosperity to Latin America. The integration aims to expand financial solutions in Latin America, offering new connections and equitable, secure, and agile experiences. Rubén Galindo, CEO of Airtm, highlighted the importance of this integration for Latin America's financial independence in the evolving digital economy.
VC - M&A News
Visa acquires a majority stake in Mexican payment processor Prosa
Prosa will continue to operate independently, benefiting from Visa's global network expertise to introduce new digital solutions. This investment aligns with Visa's "network of networks" strategy, aiming to develop innovative payment methods for consumers and small businesses in Mexico. Visa's involvement is expected to allow key players in the global payment ecosystem to play a more significant role in Mexico's payment landscape, with plans to improve technology for both brand-agnostic and Visa-specific services, including tokenized payments. Additionally, Prosa aims to introduce services like real-time payments and greater payment efficiency through Visa's solutions. Despite the preference for in-store shopping in Mexico, consumers are increasingly using digital features like online purchasing and digital coupons, indicating a growing demand for digital shopping and payment options.
BMV achieved a new historic high
The Mexican Stock Exchange (BMV) achieved a new historic high last week, closing with a weekly gain of 5%, driven by investor optimism regarding interest rates. The primary indicator of the BMV (S&P/BMV IPC) closed at 57,176 units, marking an increase of 18% annually, adding up to a five-week positive rally. Similarly, the FTSE BIVA of the Institutional Stock Exchange (BIVA) followed this trend, closing at a new index level of 1,179 points. The gains were attributed to a mix of factors, including the Bank of Mexico (Banxico) maintaining interest rates unchanged, and making equity investment more attractive.
Rest of the World
Major Indian Tech firm, LTIMindtree, is expanding its operations to Mexico
LTIMindtree is planning to hire over 170 professionals and graduates. This move is part of the company's strategy to strengthen its presence in the Latin America and improve connections with nearshore and local customers. The Mexico City Delivery Center is a key element of this expansion, focusing on collaboration and innovation with an emphasis on Systems, Applications and Products in Data Processing (SAP), and Digital Engineering services. Mexico's skilled workforce, favorable business environment, and role as a nearshoring destination make it an attractive location for LTIMindtree. This expansion is expected to boost trade relations between Mexico and India, enhancing economic cooperation and technology exchange. Once again, a good example that the nearshoring trend won’t be limited to physical production but also technology and digital products.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud