Ep. 88: Payment Unicorn Clip en route to IPO
Plus, FinTech Ximple round, Finsus acquiring Distrito Pyme, Belvo partnering with Citibanamex, and more.
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
Follow The Money
Clip secures a new US$ 100 M investment
The payment unicorn has secured new US$ 100 million in financing from Morgan Stanley Tactical Value and another unnamed “West Coast investor”. Clip offers digital payment solutions and point-of-sale devices, along with financial services, credit products, software, and APIs to merchants. The company, which is on the verge of profitability, plans to use the funds to continue its growth in the Mexican market. The new funding maintained its valuation at US$ 2 billion, consistent with its Series D round. This funding round comes as a positive development amid a tighter funding environment, and a potential signal for a future IPO.
Sector: FinTech
Total raised to date: US$ 400 million
Founders: Adolfo Babatz
Investors: Morgan Stanley Tactical Value
FinTech Ximple raises US$ 2.7 million
The new startup focused on enhancing financial inclusion in Latin America, has successfully raised US$ 2.7 million to launch and expand its digital credit distribution platform in Mexico. Ximple will use these funds to introduce new financial products designed to provide credit solutions to over 300 million Latin Americans currently without access to traditional financial services. The platform enables direct sellers, termed "Allies," to offer credit to their customers while enhancing their main business digitally, thus addressing low levels of financial inclusion and boosting their income through loan distribution.
Sector: FinTech
Total raised to date: US$ 2.7 million
Founders: Daniel Sujo, Juan Pablo Salem, Rodrigo Schlesinger
Investors: Boost Capital, Clocktower Ventures, Graph Ventures, 99 Startups, Lotux VC
Startups News
Flat becomes Clau
The PropTech startup founded by Víctor Noguera and Bernardo Cordero, is rebranding as Clau. The new platform will launch with an inventory of 80,000 properties and over 3,000 real estate agents, aiming to reach 300,000 monthly visits by the end of 2024. Clau product will be part of the Clau Group, which includes Intelimétrica, a data company, and Hipoteca Genial, which provides financing options for homebuyers.
Belvo partners with Citibanamex
The partnership will serve to offer credit opportunities to individuals in Mexico without a credit history, leveraging open finance technology. Belvo, a data management and open finance payments startup, provides secure verification of employment histories through the Mexican Social Security Institute (IMSS). This collaboration allows Citibanamex to extend credit and credit card offers to those previously excluded due to lack of credit history or verification of income challenges, thereby enhancing financial inclusion. The alliance eliminates traditional barriers like physical document submission, streamlining the credit application process and making banking services more accessible to a broader segment of the population.
Yalo to invests US$10 million in Ecuador
Yalo is a Mexican platform facilitating transactions through WhatsApp using AI. Founded in 2016 by Javier Mata, Yalo aims to democratize AI to redefine corporate communication structures and enhance client interactions. The startup, which started operations in Ecuador last year, targets local corner stores. With this investment, Yalo’s plan to expand to 200,000 stores, highlighting its commitment to leveraging technology to create and scale innovative solutions.
VC - M&A News
Fintech Finsus acquires Distrito Pyme
This acquisition allows Finsus to delve into the digital lending business for small and medium-sized enterprises in Mexico. Distrito Pyme, founded in 2017, has processed 20,000 credit applications and successfully placed about US$ 45 million with over a thousand companies. The new Finsus platform will offer digital pre-approval for SME credits ranging from 500,000 to 1.5 million pesos, with terms from three to 18 months, simplifying the credit process to just 30 minutes without paperwork. This move bolsters Finsus's entry into SME financing, and plans to expand its digital credit offerings, enhancing its existing savings, investment, and payment services.
Rest of the World
Colombian Picap to start operations in Mexico
The motorbike ride-sharing platform established in 2016 has entered the Mexican market focusing on reducing commute times in Mexico City, where residents spend up to two hours traveling to work. The app, known as "the Uber of motorcycles," aims to save users about 30% on fares compared to other ride-sharing apps, with an average cost between 33 and 78 pesos. Despite offering potential time savings and competitive earnings for drivers, Picap faces significant challenges in Mexico, including road safety and user mistrust. In its home country, Colombia, the startup has faced legal issues regarding the legality of its motorcycle taxi model. While very common in South East Asia, the model face reticence in Latin America.
Ecuadorian PayMon comes to Mexico
The FinTech has launched operations in Mexico for its specialized software designed to digitize cafeterias, notably enhancing their management and operational processes. PayMon’s goal is to support the digital transformation of cafeterias and SMEs, enhancing financial education among youth, promoting responsible consumption habits, and encouraging digital payments.
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Arnaud