Ep. 84: Mexico first Series A of the year
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Follow The Money
Spot2 undisclosed Series A
PropTech Spot2, has successfully closed the first Series A funding round of 2024. The round was led by Monashees Capital and Valor Capital. Unfortunately, the amount raised was not disclosed. This capital injection will be used for technological development, hiring, and building a cutting-edge data infrastructure. The funding will also support Spot2 in offering new solutions like credits and insurances, reinforcing its commitment to enhancing operational efficiency and service quality in the commercial real estate market. Despite a general investment drought in Mexico, Spot2's achievement is seen as a win for the ecosystem. For the record, their Seed was US$ 4.2 Million in May 2022. I wonder why they didn't disclose the amount this time, maybe it was less than the Seed round?
Sector: PropTech
Total raised to date: US$4+ million
Founders: Alfonso Salem, Axel Olivella, Jorge Sequeira Aldrete
Investors: Monashees Capital, Valor Capital
Plata Card secures US$ 100 million credit line
The Mexican credit card FinTech received the credit line from Fasanara Capital Ltd, a global asset manager with approximately USD 4 billion in assets under management and a leader in the fintech lending space. This funding marks Fasanara's first venture into consumer lending in Mexico and aims to transform the personal finance landscape for Mexican consumers by providing inclusive, simple, and reliable financial solutions. This strategic investment by Fasanara is set to enhance the accessibility of personal finance services in Mexico, supporting the country's rapid digital transformation and financial inclusion goals.
Sector: FinTech
Total raised to date: US$100 million Debt
Founders: Neri Tollardo, Danil Anisimov
Investors: Fasanara Capital
Startups News
Briqmx partners with Bitso
Briqmx, a real estate crowdfunding platform, has partnered with cryptocurrency exchange Bitso to enhance its payment infrastructure. This collaboration will allow Briqmx's 125 institutional clients and 90,000 users to conduct transactions in pesos using a single account managed through an API, optimizing cost, speed, and stability. This move is designed to improve efficiency, transparency, and compliance with Mexico's Fintech Law, which requires crowdfunding platforms to maintain a unified account for managing client funds.
DiDi is expanding its operations in Mexico
The ride-sharing startup aims to diversify its services and grow its base of 500,000 drivers and delivery personnel. Juan Andrés Panamá, DiDi's director for Latin America, Middle East, and Africa, highlighted plans to enter three major unrepresented cities and expand into smaller ones. DiDi is also introducing new services like DiDi Shop and DiDi Club to enhance user experience. DiDi Shop will integrate various retail products into its platform, while DiDi Club offers memberships with multiple benefits, from travel to financial services.
Sulpayments Switzerland X GameCash Mexico
Sulpayments Switzerland and GameCash Mexico have formed a partnership aimed at strengthening their foothold in Mexico's booming gaming and fintech sectors. This alliance will capitalize on GameCash’s strong market presence in Mexico and incorporate Sulpayments’ advanced payment technologies, including the latest 3D Secure 2.0 protocol for secure and efficient transactions. The collaboration allows Sulpayments to extend its innovative financial solutions, optimized for secure cross-border transactions and USDT settlements, within the regulatory framework of Switzerland, enhancing its technological impact in Mexico.
Mercado Libre will add jobs in Mexico
Despite challenges in Argentina, MercadoLibre showcased significant financial growth in the first quarter of 2024, largely driven by strong performances in Brazil and Mexico. The company reported a 71% increase in net income to US$ 344 million, overcoming the negative impact of Argentina's economic conditions. In Mexico, MercadoLibre plans to add 18,000 jobs, contributing to its expansion in the country and strengthening its position in the Latin American market.
VC - M&A News
Conekta agrees to sell the assets of OXXO PAY to FEMSA
Conekta, an online payment solutions provider in Mexico, has agreed to sell the assets of OXXO PAY to Digital@FEMSA in 2024, as part of its strategy to focus on its core business areas. This sale will allow Conekta to concentrate on enhancing its online payment processing capabilities, including card payments and bank transfers. OXXO PAY, which allows merchants to receive cash payments at over 22,000 OXXO stores in Mexico for online sales, will be integrated into Digital@FEMSA’s suite of digital payment solutions. The transition is set to be completed in the second half of 2024, ensuring continuity for all existing customers and stakeholders.
Citigroup acquires a minority stake in Cicada
The bank has acquired a minority stake in Cicada Technologies, a trading platform specializing in Mexican government fixed-income securities. The investment was made through Citigroup's Markets Strategic Investments unit, although specific financial details were not disclosed. In addition to Citigroup, other investors in Cicada include Kaszek Ventures, BCP Securities, 500 Latam, and Dila Capital. Citigroup will also join the platform as a liquidity provider, enhancing its offerings in the fixed-income market.
Rest of the World
Spanish Routal comes to Mexico
Routal is an AI-driven route optimization company that recently raised €1 million to enhance its operations and expand in Latin America, focusing on Mexico. Founded in 2015, the startup reached €400,000 in revenue in 2023, and aims for €1 million by 2024. With this expansion, Routal wants to become a leader in AI-enhanced route management solutions, serving major clients like Volkswagen, Mercedes Benz, Quaker State, and Marfrig, and reducing delivery complexities and operational costs worldwide.
Economy
According to JP Morgan, Mexico will keep a stricter monetary policy stance than initially expected
The firm has adjusted its last forecasts, suggesting that Mexico will maintain a stricter monetary policy stance than initially expected amidst persistent inflation and tough global financial conditions. The Mexican central bank, Banxico, currently holds its policy rate at 11%, recently adjusted from 11.25% after eight consecutive meetings. Despite challenging domestic conditions and a fiscal policy that's becoming more lax, JP Morgan anticipates a cautious approach from Banxico, with strategic pauses in rate adjustments planned for the May and August meetings this year. Looking forward, they expect significant easing to resume in the second quarter of 2025, with rate cuts projected to reach 7% by December 2025, reflecting an assumption that inflation will decrease and geopolitical risks will diminish by the end of the year.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Arnaud