Ep. 92: Adiós predatory lending practices - Digitt secures US$ 50 million.
Plus, 🇲🇽 Popular Power Pre-Seed round, 🇨🇱 Global66 rapid growth, 🇲🇽 Jetz App acquisition, and more!
Follow The Money
🇲🇽 Digitt secures a US$ 50 million debt facility
The Mexican FinTech Digitt will use the new capital to expand its credit card debt refinancing product for prime borrowers in Mexico. The startup aims to combat the predatory credit card lending practices prevalent in the region, where even creditworthy customers face interest rates between 60-150%. Backed by previous equity financing of US$ 4.8 million, Digitt plans to triple its portfolio within the next year, helping over 15,000 people access affordable and predictable credit products. This deal also marks CoVenture's first direct investment in Latin America, a private credit and alternative asset manager based in New York.
Sector: FinTech
Founders: Manuel Alvarez and David García
Investors: CoVenture
🇲🇽 Popular Power raised a US$ 875K Pre-Seed round
The Mexican startup launched in 2023 a B2B solar software platform for residential and commercial & industrial sectors, integrating site monitoring, alerts, analysis, and performance tracking into one interface. The platform streamlines operations, automates workflows, and aids data-driven decision-making, serving clients like Hybrytec, a major solar project developer in Colombia. The funds will be used to grow the team, expand the customer base, and accelerate product development.
Sector: B2B Solar Software
Founders: Morgan Babbs and Manuel Wiechers
Investors: Amplifica Capital, Cerulean VC, 0bs, Dunn Family Impact Capital, and Mercy Corps Ventures
🇨🇱 FinTech Relif raised a US$ 400K funding round
Relif operates a financial health platform that partners with companies to improve their employees' debt conditions using Open Data and AI, and combat over-indebtedness and a lack of financial education in the country. The team will use the new capital to solidify its business in Chile by capitalizing on significant growth opportunities and enhancing its product and team to support its expansion goals.
Sector: FinTech
Founders: Benjamín Bustos, Jorge de la Carrera, Carlos Stevenson de La Taille, Benjamín Bustos Plass
Investors: ChileGlobal Angels
Startups News
🇲🇽 Blu Financiero launches a credit card for underbanked consumers
Blu Financiero, a FinTech company in Mexico, has launched a new credit card targeted at the underbanked demographic with a high approval rate of 99% and no formal credit history requirement. According to the startup, over 50,000 people joined the waiting list ahead of the launch, highlighting the significant demand for its product. This initiative addresses the restrictive credit conditions enforced by the dominant traditional banks that control 70% of the deposits and show little interest in serving the broader Mexican market.
🇨🇱 Global66 rapid growth in Colombia
Colombia Country manager Santiago Mejía reports that since 2021, the startup has seen substantial annual increases in personal remittance volumes, with more than 130% growth in 2022 and 2023, and reaching US$ 54 million by the first half of 2024. Global 66 now supports more than 190,000 clients in Colombia, with its user base expanding by over 300% in 2022 and continuing to grow. The startup enhances financial service efficiency and accessibility by allowing users to manage multiple currencies and conduct swift international transfers.
FinTech Hapi introduces its Prime service
Hapi, a FinTech founded in 2020 by Peruvians Dusko Kelez, Piero Sifuentes, and Billy Caballero, allows Latin American investors to access the U.S. stock and cryptocurrency markets. Since joining Y Combinator in 2021, Hapi has raised US$ 4.3 million and offers services enabling users to buy fractional shares from US$ 5 and cryptocurrencies from US$ 1 without intermediary fees. The startup, regulated by FINRA and the SEC, plans to introduce Hapi Prime, a premium subscription for experienced investors, and a dividend reinvestment program called DRIP in 2024. The platform currently boasts over 500,000 clients across Latin America, and is aiming to keep expanding its presence in the region.
VC - M&A News
The White House mobilizes US$1 billion to support Latin American entrepreneurs
The White House has launched the Americas Partnership Investor Network, mobilizing US$1 billion in capital to support Latin American entrepreneurs. This initiative, announced in collaboration with the Uruguayan Foreign Minister Omar Paganini, the U.S. National Security Advisor Jake Sullivan, and the USAID Administrator Samantha Power, aims to energize the start-up ecosystem across the Western Hemisphere. The network seeks to help Latin American founders expand into the U.S. market, fostering economic development and stronger economic ties between in the Americas.
🇲🇽 Jetz App partially acquired by Grupo CIOSA
Jetz App, a Mexican startup founded in 2021 that specializes in fast delivery of auto parts to mechanics, announced that 75% of its shares have been acquired by Grupo CIOSA, a company with over 35 years in the auto parts distribution industry. The platform included a parts search engine that covers over 760,000 pieces compatible with more than 43,000 vehicles and 1,500 brands. This acquisition will allow Jetz App to continue expanding its strategies and strengthen its mission to improve the supply chain for mechanics in Mexico.
Economy
Chile’s foreign investment growth 🇨🇱
InvestChile, Chile's Foreign Investment Promotion Agency, closed the first half of 2024 with a project portfolio valued at US$ 34.5 billion across 405 initiatives, marking a 24% increase from the same period in 2023. Significant investments were made in energy, mining, and global services. The increase in foreign investment is attributed to coordinated efforts between InvestChile and other government bodies, highlighting Chile’s appeal as a reliable international partner. The United States led foreign investment, followed by China and Canada.
Expansion Plans
🇪🇸 FinTech Payflow to accelerate its expansion in LATAM
Payflow has secured US$ 6.5 million in funding to accelerate its expansion in Spain, Portugal, Colombia, and Peru. The funding round will also aim to help the company achieve profitability. Since its founding in 2020, Payflow has grown significantly, boasting over 1,000 clients, including major brands like Telefónica and Claro, and has achieved €4 million in annual recurring revenue. The Y Combinator startup, founded in 2020 by Benoît Menardo and Avinash Sukhwani, is Barcelona-based FinTech leader in on-demand salaries and flexible remuneration in the European Union and Latin America, which allows instant access to the salary corresponding to the days of the month worked.
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