Ep. 93: Mercado Libre Crowned Most Valuable Company in Latin America
Plus, phygital FinTech Aviva $5.5 million Seed, Credit Saison $200 million commitment to the region, Argentine SpaceTech Satellogic move to India, and more!
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇲🇽 Aviva raised a US$ 5.5 million Seed round
Aviva offers a unique blend of physical and digital experience for its credit application process, using conversational voice AI and vision technology to offer loans based on the customer’s personal story. They already offered 13,000 credit lines, catering primarily to the informal sector, which constitutes 90% of its clientele. The team plans to expand its product suite and kiosk network in small and medium-sized cities across Mexico, aiming to reach over 50 cities by year-end. The new investment will support their mission to provide accessible financial services and achieve profitability within three years of operation. A FinTech to keep an eye on with a unique value proposition and technology.
Sector: FinTech
Founders: Filiberto Castro, David Hernández, Amran Frey, Israel García
Investors: Krealo, Ignia Partners, Carao Ventures, Rainforest Capital, DCG, Wollef, Newtopia, 500 Global, Magna VC
🇲🇽 Crediko US$2.5 million Seed round
The Mexican fintech provides an "All Inclusive" fixed monthly credit financing package for school expenses including enrollment, tuition, books, and uniforms. Using a predictive algorithm, Crediko ensures the reliable payment behavior of parents or guardians. The recent funding will enable Crediko to refine its business model for the 2024-2025 school year and prepare for growth in credit placements, talent acquisition, and product development. Founded in March 2024, Crediko aims to expand beyond Mexico, providing affordable and flexible educational financing across Latin America.
Sector: FinTech
Founders: Rodrigo Velasquez Ugalde
Investors: Graven Group (family office)
🇵🇪 Nutri Co secures US$ 2 million investment
The Peruvian FoodTech has secured US$ 2 million in investment from Uruguayan bioactives producer Terraflos. The investment, led by CEO and co-founder Carlos Noceda, aims to develop innovative plant-based products without raising costs. Terraflos will play a strategic role in the company's expansion into Argentina and Colombia, planned for late 2024. Nutri Co has already entered the Mexican market through Costco and is in negotiation with other retailers. The new funds will support product expansion, including superfood bars and collagen cookies, as the startup aims to double its sales this year and achieve profitability in 2025.
Sector: FoodTech
Founders: Daniel Nuñez, Carlos Noceda Martorellet
Investors: Terraflos
Startups News
🇨🇴 PayTech Zulu reaches the 400-client milestone
Founded in 2021 by Esteban Villegas and Julián Delgado, the startup has reached a significant milestone by processing nearly US$ 100 million in international payments from over 400 clients across more than 50 countries. Zulu offers a faster, more cost-effective alternative to traditional financial institutions, promising international payments in under 24 hours, compared to the typical 3-5 day period. The team focuses on supporting small and medium-sized businesses, particularly those new to international trade, by simplifying complex legal requirements and reducing transaction costs.
VC - M&A News
🇯🇵 Credit Saison commits US$200 million to startups in LATAM
Credit Saison, a Japanese financial services group, has launched 2 new subsidiaries in Brazil and Mexico, committing US$ 200 million to support startups and SMBs in Latin America. Each country's unit is allocated US$ 100 million for equity and debt financing, with investments channeled through Saison Capital or local venture capital funds. Saison Capital, established in 2019, typically invests in pre-seed to series B-stage companies, focusing on FinTech, ecommerce, and Web3 technologies. Kosuke Mori, chief executive of Saison International, said “The LatAm region holds the greatest growth potential for us as a group outside of Asia, and forms the important next chapter for us as a global group”.
UK-based Laundryheap has acquired 🇵🇪 GetLavado
Laundryheap is the world's largest on-demand laundry and dry-cleaning platform. With this acquisition, Laundryheap will initially launch services in Lima, Peru, and plans to expand to Colombia and Mexico later this year. The acquisition extends Laundryheap's reach to 14 international markets, adding Latin America to its existing operations in the UK, US, Europe, Asia, and the UAE. The GetLavado team, including founder Martin Beas Núñez, will join Laundryheap, and the brand will transition to Laundryheap's platform, offering enhanced services such as 24-hour pickup and delivery.
Economy
Mercado Libre becomes the most valuable company in Latin America
The e-commerce giant, with operations in 18 countries and also the owner of the PayTech Mercado Pago, reported a net profit of US$ 531 million for the quarter ending in June, more than double compared to the same period last year. The company's revenue reached US$ 5.1 billion, a 42% increase year-over-year, driven by a significant growth in gross merchandise value, particularly a 36% increase in Brazil. These results led to a 12% surge in its Nasdaq-listed shares, boosting its market capitalization to US$ 93.25 billion and solidifying its leader position over other major Latin American companies.
The most valuable companies in Latin America are:
Mercado Libre: $93.2 billion
Petrobras: $87.3 billion
Walmart Mexico: $58.1 billion
Itaú: $56.6 billion
NU: $55.1 billion
América Móvil: $50.6 billion
Expansion Plans
🇦🇷 Satellogic aims to extend its offerings to India
Argentine SpaceTech Satellogic, known for its innovative satellite services, now aims to extend its offerings to India. This initiative builds on a decade-long cooperation with the Indian Space Research Organisation (ISRO) and other Indian and Argentine entities. The partnership leverages Argentina's ground station in Bariloche to maintain communication with satellites when they are out of India's range, ensuring their proper orbit positioning and operational continuity. Love to see more collaboration between Latin America and India on DeepTech projects!
🇪🇨 Kupuna expands to Peru, Colombia, Bolivia, and Paraguay
The Ecuadorian FinTech simplifies tax compliance and billing, particularly for small businesses and individuals not required to keep formal accounts, by using AI to automate tax processes. Kupuna's AI efficiently categorizes invoices and offers features like VAT deductions. The startup has garnered 13,000 downloads and has facilitated over US$ 4.5 million in billings. As part of its expansion, Kupuna plans to establish a strong presence in Peru, aiming for 66,000 registrations and 3,300 subscribers, supported by a US$ 400,000 investment.
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Abrazo,
Arnaud