Ep. 85: The Series B we were waiting for - Aplazo US$ 45 million round
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Follow The Money
BNPL Aplazo closed Mexico's first Series B of the year
The FinTech is betting on the Buy Now, Pay Later model to serve the underbanked population in Mexico, offering an alternative to traditional credit systems. The US$ 45 million Series B round will help Aplazo provide a virtual card for both online and offline purchases, particularly targeting those without a credit history. Despite e-commerce's growing reach in Mexico, over half of Aplazo's transactions are made in physical stores. The team said that since they started leveraging AI to enhance credit underwriting and manage risks effectively, they noted a significant reduction in delinquency rates even as the business tripled. Aplazo's approach to BNPL is strategic, aiming to broaden its market penetration and value creation for both consumers and merchants, in order to be able to offer other kind of financial services in the future.
Sector: FinTech
Total raised to date: US$ 77 million
Founders: Angel Pena, Alexander Wieland
Investors: QED Investors, Volpe Capital, Oak HC/FT, Kaszek, Picus Capital
Worky closed a US$ 6 million Series A
The HR and payroll software startup has raised a Series A to enhance its cloud-based services for SMEs. Worky aims to streamline HR functions for the 20 million SME employees in Mexico, where 60% frequently change jobs. In 2022, Worky launched "Worky Payroll," the first cloud-native payroll system in Mexico, and introduced a shift management module to help businesses manage payroll and incentives more efficiently. The new capital will accelerate product development, expand marketing and sales, and enhance team integration of payroll management, data analytics, and employee benefits, addressing the complex payroll and employment regulations in Mexico.
Sector: HR Tech
Total raised to date: US$ 6 million
Founders: Maya Dadoo, Carlos Marina
Investors: Atlántico, ADP Ventures
Startups News
Bitso launches a new Web3 wallet
The cryptocurrency service startup has announced the launch of a digital wallet enabled for Web3, designed to facilitate interaction with decentralized applications (dApps) and manage various digital assets including cryptocurrencies and non-fungible tokens (NFTs). Set to be available from May 13 for all platform users, the wallet supports five blockchain networks - Ethereum, Polygon, Arbitrum, Base, and Optimism - allowing access to over 2,000 tokens through direct cryptocurrency exchanges known as swaps.
Kueski partners with BBVA
BBVA and Kueski Pay have partnered to boost online shopping in Mexico by integrating the "buy now, pay later" option into BBVA's Openpay payment gateway. This collaboration aims to make electronic payments more accessible for millions of Mexicans, eliminating the need for credit cards or cash, thereby stimulating online economic activity. The competition for a share of the BNPL market in Mexico in intensifying.
Vemo makes network of charging stations compatible with Chinese EVs
Vemo is investing in expanding its network of charging stations compatible with Chinese electric vehicles (EVs), such as those from BYD, aiming to address the scarcity of GBT chargers in Mexico. Despite the widespread presence of charging stations for American brands like Tesla, which dominates the market, only a small fraction of the existing infrastructure can accommodate Chinese EVs. Vemo's initiative is a response to the growing demand from users who struggle with the limited charging options for their Chinese EVs. Partnering with BYD, Vemo plans to double its current network of nearly 500 chargers by 2025, enhancing the infrastructure to support a broader range of EVs and facilitating the transition towards electric mobility in Mexico. Read an in-depth article about the matters on restofworld.
Rest of the World
Colombian Celes raised capital to come to Mexico
The Colombian startup specializing in AI-powered inventory and promotions management for retailers, has raised US$ 3 million in a seed round led by Femsa Ventures. Founded in 2022 in Barranquilla by Luis Almanza, Luis Miguel Ballestas Ayala, and David Florián, Celes plans to use the new funds to enhance user experience and expand to Mexico. This investment underscores Femsa Ventures' commitment to digitalizing the retail sector in Latin America, positioning Celes to bridge the technological gap in the region and enhance its competitive edge.
Uruguayan OrderEAT comes to Mexico
The startup focused on providing management solutions for school cafeterias, has secured a US$ 500,000 investment to boost its expansion in Mexico. Already serving 100 schools in Mexico and collaborating with another 200 on initiatives to improve child nutrition, the company aims to further penetrate the market where over 40,000 private schools face significant food wastage issues due to poor management. Founded in 2019, OrderEAT offers a platform that enhances administrative control for cafeterias, automates repetitive tasks, and reduces food waste, according to CEO Matías Craviotto.
Economy
Mexico 100 million internet users
Mexico number of internet users stands at 101.9 million. The demographic split shows 52% men and 48% women. The "Habits of Internet Users in Mexico" study, conducted by the Asociación de Internet MX, highlights that 84% of the population aged six and over are using internet. Usage includes 93% connecting via WiFi and 76% using mobile data networks. Popular online activities include messaging, work-related tasks, social media, and email, with growing concerns about data theft and online fraud. The study also indicates a positive reception towards artificial intelligence, with 59% using AI applications and recognizing its decision-making benefits.
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Arnaud