Ep. 94: 🇲🇽 Unicorn Stori secures US$ 212 million from Goldman Sachs, Notable Capital and BAI Capital
Plus, Buo Seed round, Global66 new IBAN feature, Nu Bank 3X deposits in Mexico and more.
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇲🇽 Unicorn Stori secures US$ 212 million in a new funding round
Mexican Fintech Stori has secured US$ 212 million in a new funding round, consisting of US$ 105 million in equity led by Notable Capital and BAI Capital, and US$ 107 million in debt led by Goldman Sachs and Davidson Kempner Capital Management. Stori, which offers payment cards and high-interest deposit accounts to the underbanked population in Mexico, plans to use the equity funds to enhance its technology and expand its product offerings, while the debt will support its lending operation. With over 3 million active users, Stori aims to invest US$ 360 million in Mexico over the next two years to increase financial inclusion and expand its operations to other Latin American markets. Also worth noting, the startup announced the hire of Diego Cabrera Canay as Chief Financial Officer. Cabrera's most recent role was as CFO of Uruguay's dLocal, and he previously held positions at MercadoLibre and PwC. This strategic hire may signal preparations for an initial public offering (IPO).
Sector: FinTech
Founders: Bin Chen, Nick Chen, Marlene Garayzar
Investors: Notable Capital, BAI Capital, Goldman Sachs, Davidson Kempner Capital
🇨🇷 Buo secured a US$3 million Seed round
Buo is a Costa Rican-Mexican startup specializing in AI-driven talent management. The startup uses predictive technologies to help companies identify and replicate the key factors that contribute to employee success, offering services that improve recruitment efficiency, increase high-performing employee density, and shorten learning curves for new hires. The team already work with a client base that includes 40 major corporations, including five Fortune 500 companies, and will use the new funding to support its expansion into Chile, Colombia, and Central America, further solidifying its presence in the region.
Sector: HR Tech
Founders: Mariano Miranda, Ximena Loranca, Orlando López, Pablo RodrÃguez, Paqui Casanueva
Investors: DILA Capital, Nido Ventures, Daedalus Ventures, Kuiper VC
Startups News
🇨🇱 Global66 new IBAN feature
FinTech Global66 has launched a new feature that provides users with IBAN and routing numbers for global dollar and euro accounts, allowing them to receive and send transfers as if they were local transactions in the US, Europe, and the UK without needing to open foreign bank accounts. This service targets freelancers, expatriates, students, investors, and businesses, facilitating international payments and fund withdrawals from platforms like PayPal and Airbnb. This new functionality, already available to business account holders, is a real game-changer that will contribute to the growth and economic development of Latin American entrepreneurs.
Nu Bank triples deposits in Mexico in the last six months
Nu has experienced rapid growth in Mexico (again), tripling customer deposits to reach 60.95 billion pesos (3.2 billion USD) in just six months, marking an increase of over 250%. This significant expansion is driven by competitive interest rates and attractive returns for customers. The majority of these funds, 46.66 billion pesos, are from demand deposits, while 14.3 billion pesos are in fixed-term deposits. Nevertheless, despite this growth, Nu reported losses of 2.24 billion pesos (118 million USD) by mid-year, nearly double its total losses for 2023.
Economy
The IDB approved a US$ 500 million loan to Ecuador
The Inter-American Development Bank (IDB) has approved a US$ 500 million loan to Ecuador to strengthen the country's macroeconomic stability and fiscal sustainability. The loan, structured under the Special Development Financing (SDL) modality, will be disbursed in two tranches and aims to support Ecuador's short-term financing needs and stabilize its macroeconomy, while also safeguarding social protection programs. The loan has a seven-year repayment term, a three-year grace period, and an interest rate based on SOFR plus 1.15%.
Expansion Plans
Argentine startups see Mexico as a strategic destination for expansion
Argentinian startups are increasingly targeting Mexico as a strategic destination for expansion in Latin America, drawn by the country's robust startup ecosystem, a large and diverse consumer base, and more access to capital. Mexico's status as a hub of innovation and its growing digital economy make it an attractive market for sectors like Fintech, E-commerce, Edtech, and Healthtech. Mexico is the second-largest economy in Latin America, with a Gross Domestic Product (GDP) of US$ 1.4 trillion dollars in 2023.
Speaking of expansion…
If you understand Spanish, make sure to check out my latest podcast episode where I talk with Charly Esnal, Mana Tech’s CEO, about his entrepreneurial journey from Argentina to the US and the ambitious goal he has with his team to make Miami the innovation hub of all the Americas (from Canada to Argentina). Click here to watch the full episode on YouTube or here to listen on Spotify.
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
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Abrazo,
Arnaud