Ep. 78: First IPO of the year; but not from a Tech Startup.
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Tiendas 3B completed its NYSE IPO on Friday February 9th. They reached several milestones:
Exceeded US$2 billion dollars of market capitalization on its first day of trading
1st Mexican company to IPO exclusively on the NYSE
On 1st day of trading reached the top 30 of Mexican listed companies by market capitalization
One of the youngest Mexican listed companies (founded in 2004)
Maybe we can all learn a thing or two from them.
Follow The Money
FinTech Coba raises a US$ 2.2 million Seed round
The new capital will help Coba enhance its cross-border financial services, enabling remote workers in Mexico & Latin America to manage their finances across two countries without the need for a credit card. Coba offers a U.S. deposit account for receiving USD payments and integrates Mexican financial services for local spending in pesos. Their solution addresses the challenges faced by remote workers dealing with dual-currency financial management. Coba's ambition is to expand to 5,000 users, and offer additional services like insurance and investments.
Sector: FinTech
Total raised to date: US$2.2 million
Founders: Joseph Saliba, Eduardo Lopez, Abraham Kuri, Carlos Medellín
Investors: Alaya Capital, Switch VC, Banco BASE, Topaz
Vemo received a US$ 60 million investment
The startup committed to accelerating the adoption of clean mobility technologies through comprehensive solutions, has received a new investment from Orion Infrastructure Capital (OIC) to fund its clean mobility strategy in Latin America. Founded in 2021 in Mexico City, Vemo integrates vehicles, charging infrastructure, technology, and a data intelligence platform to manage the clean mobility ecosystem. The company, which is not a vehicle manufacturer, added electric vehicles to its fleet in 2022 through the acquisition of assets from Viral Code in Mexico and its electric car business in Colombia. These vehicles previously operated on the Beat mobility platform, which has exited the Latin American market.
Sector: Mobility - CleanTech
Total raised to date: US$60 million
Investors: Orion Infrastructure Capital (OIC)
FinTech Techreo raises US$ 3.4 million in convertible capital
Techreo is a comprehensive financial services platform. This funding will boost Techreo's positioning in Mexico and Bolivia through investment in technology, marketing, and talent. Techreo's mission is to provide comprehensive financial services to underserved populations. The FinTech distinguishes itself by partnering with regulated financial entities in each country it operates, offering a range of services from savings accounts to digital wallets and QR code payments in Bolivia, aiming for complete financial inclusion and accessibility.
Sector: FinTech
Total raised to date: US$3.4 million
Founders: Iliana de Silva
Investors: G2 Momentum, Creation Investments Capital Management
Startups News
Tapi announced a partnership with PESPay
Tapi is an Argentine PayTech that is transforming the payment infrastructure throughout Latin America. Their recent partnership with Mexican PESPay, the gateway for new payment methods in Mexico, will connect in-person and digital payments, elevating the payment experience to a new level in Mexico. Tapi also recently added Fabián Saide to its staff as Corporate Affairs Advisor. Fabián is a FinTech expert who has transformed the industry by developing a bill pay network in more than 20 countries and will now help Tapi gain a foothold in Mexico and globally.
FinTechs Rivium and Now have formed a strategic alliance
The alliance goal is to redefine Mexico's financial landscape by integrating Rivium's U.S. stock market investment capabilities with Now's comprehensive digital banking services. This partnership aims to provide an unparalleled financial experience, combining investment opportunities with digital banking solutions, including a debit account without deposit limits and a digital wallet accessible through Rivium's app. Users will benefit from streamlined financial management and access to a broad range of digital banking services, such as purchases, payments, transfers, and cash withdrawals through the Mastercard network and at locations like OXXO, Walmart, Soriana, Chedraui, and Office Depot.
VC - Accelerators News
Meet me at F.L.I.I.
As there was no activity on the investors’ side this week, I am using this space to share that I will be attending the Latin American Impact Investment conference in Mérida this month. If you want to grab a coffee at your favorite café in Mérida or want to meet during the FLII, shoot me a message by answering this email.
Rest of the World
Brazilian FitBank is expanding to Mexico
FitBank is a FinTech offering Banking as a Service. This strategic move aligns with FitBank's goal for international markets to contribute to 50% of its revenue within five years. In Mexico, FitBank partnered with financial group Actinver in June 2023 to provide its comprehensive solutions, marking its first revenue in the country by November. The expansion underscores FitBank's rapid growth in Latin America, aiming to meet the surging demand for integrated financial services in Mexico.
Economy
Mexican discount retailer BBB goes Public
The Mexican discount retailer BBB Foods Inc. experienced a 20% increase in its stock price during its debut, reaching a market valuation of approximately US$ 2.2 billion after its initial public offering (IPO) in the United States. The IPO, priced at the top of its marketed range, raised about US$ 589 million. This event marks the largest U.S. IPO by a Mexico-based company since Santander's Mexican unit went public in 2012. BBB Foods, which operates over 2,200 Tiendas 3B stores in Mexico, plans to use the proceeds to invest in technology, marketing, and talent to expand its presence in Mexico and Bolivia. The company's successful IPO happened despite a challenging environment for fundraising, and highlights its potential for expansion in Latin America's consumer market.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud