Ep. 96: Deep Tech funding is catching up
Plus, Salvadoran Fintech Ábaco $4 million Pre-seed, Unicorn Stori $100 million investment in Colombia, Paraguay $400 million loan from the FMI, and more.
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇸🇻 Ábaco closed a US$4 million Pre-seed round
Salvadoran Fintech Ábaco has closed a US$4 million pre-seed funding round to support its expansion into new markets in Latin America, starting with Guatemala, and the development of new financial products for SMBs. The startup primarily focuses on providing credit as working capital for SMEs. Through a 100% digital process, its risk and credit decision engine allows it to approve credit lines in real-time and disburse funds to the client in less than 24 hours. Since its launch 13 months ago, Ábaco has experienced a monthly growth rate of 30% and aims to reach over 5,000 affiliated SMEs, build a US$10 million loan portfolio, and democratize access to credit across the region.
Sector: FinTech
Founders: Alejandro McCormack, Carlos Villalobos, Moises Hasbún
Investors: Caricaco Ventures, Cacao Capital, Innogen Capital Ventures, Invariantes Fund, Mercy Corps Ventures, Bridge Latam
🇨🇱 Botanical raised a US$23.3 million Series A
Chilean Biotech startup Botanical Solution Inc. (BSI) has secured an additional US$7.6 million in its Series A funding, bringing the total to US$23.3 million. This capital will enable BSI to accelerate the production of QS-21, using cost-effective and scalable methods, and expand its applications in human vaccines. If, like me, the term QS-21 got you confused, here’s a short explanation: QS-21 is a powerful adjuvant used in vaccine formulations. An adjuvant is a substance added to vaccines to enhance the body's immune response to the vaccine, making it more effective. The funds will also enhance the startup's R&D capabilities, including expanding its labs in Davis, California. BSI is focused on sustainable production through plant tissue culture, avoiding deforestation while ensuring a reliable supply of high-quality QS-21, and positioning itself as a leader in the rapidly growing botanical ingredients market.
Sector: BioTech
Founders: Gastón Salinas
🇪🇨 Mercately raised a US$2.6 million Seed round
Mercately is an Ecuadorian startup that provides B2B software to help brands sell directly on WhatsApp. Mercately integrates with platforms like Stripe and HubSpot and uses AI to facilitate transactions, inventory checks, and payments without leaving WhatsApp. The startup already works with over 1,000 companies across 20 countries and has annual revenue exceeding US$1.5 million. Mercately plans to use the new funding to hire AI engineers and expand its presence in Brazil and the U.S., capitalizing on the widespread use of WhatsApp in the region.
Sector: B2B software
Founders: Henry Remache, Johnmer Bencomo, Paúl Velásquez
Investors: Inventus Capital Partners, SVQuad, Techstars, Salkantay Ventures, BuenTrip Ventures
🇨🇴 Bia Energy secures a US$10 million credit line
BBVA Spark has granted up to US$10 million in financing to Bia Energy, a Colombian startup that offers a digital platform for electricity commercialization to businesses. This is BBVA Spark's largest operation in Colombia since entering the market in early 2023. Founded in 2022, Bia Energy serves over 2,500 companies across 134 cities and already reports monthly revenues of US$8 million. The credit line aims to strengthen Bia Energy's technological infrastructure and expand its team, while demonstrating the company's financial sustainability and growth potential in the Colombian energy sector.
Sector: Energy Tech
Founders: Sebastián Ruales, Leonardo Velásquez, Guillermo Plaza
Investors: BBVA Spark
Startups News
🇻🇪 Cashea hits five million accounts milestone
Cashea, a digital financial platform that enables credit purchases, has reached five million accounts created in Venezuela, as announced by CEO Pedro Vallenilla. This achievement highlights the rapid growth and increasing adoption of fintech solutions in the country, where Cashea has established itself as one of the main player in the Fintech sector. The startup aims for further expansion, fueled by its recent acceptation into the prestigious Endeavor Scale Up program.
🇲🇽 Clip to offer digital accounts with debit cards
Mexican payments Fintech Clip is expanding into financial services by offering digital accounts with debit cards, leveraging a Fintech license obtained through its 2020 acquisition of Swap. This move also follows a recent US$100 million funding round. Targeting small and medium-sized businesses, the digital account will enable merchants to receive payments immediately, enhancing the appeal over traditional methods that require a 24-hour wait. Founded in 2012, Clip initially offered a card payment device and has since expanded into credit products for businesses.
Fintech Jeeves goes for the Sofipo license in Mexico
Jeeves, the unicorn Fintech specializing in business financing, is starting the process to obtain a license as a Sociedad Financiera Popular (Sofipo) in Mexico. CEO and founder Dileep Thazhmon stated that Jeeves is not interested in acquiring an existing Sofipo but aims to secure the license by building its own social structure. This move aligns with Jeeves' strategy to expand its offerings beyond credit, enabling businesses to use their own funds for international payments. Currently, Jeeves issues payment cards in 22 countries and is pursuing similar licensing processes or partnerships in other markets.
VC - M&A News
🇲🇽 Banorte acquired 🇺🇾 Fintech More
Mexican bank Banorte, through its subsidiary Uniteller, has completed the acquisition of all shares of the Uruguayan international payment company More Payment Evolution. The deal marks Banorte's entry into the Uruguayan market. Announced in November 2023, the deal took effect on August 13, after meeting all closing conditions. This acquisition allows Uniteller to expand its global payments capabilities and geographic footprint, leveraging More's expertise to develop global products and solutions and strengthen its position in the cross-border payments industry. More Payments currently operates in Latin America, Spain, Senegal, and the U.S.
🇲🇽 Finsus acquired startup Pulpi
Finsus, a Mexican financial institution (Sofipo), has acquired Pulpi, a Mexican startup specializing in payroll loans, to expand its services by offering payroll credits and salary advances to 70,000 workers. This acquisition is part of Finsus's strategy to become a bank and will allow it to leverage Pulpi's existing client base and credit portfolio, which has issued over 98,000 loans amounting to 234 million pesos since 2019. It also gives Finsus the legal license to do it, as Pulpi was operating under the SAPI status (sociedad anónima promotora de inversión).
Economy
🇵🇾 Paraguay to receive a US$400 million loan from the FMI
Paraguay has finalized an agreement with the International Monetary Fund (IMF) to receive a US$400 million loan in exchange for implementing reforms in the transport, investment, and financial sectors. The reforms include introducing a carbon tax on liquid fuels, promoting electric public transport, and improving the efficiency of public transportation. Additionally, the government will focus on climate-sensitive public investments and develop a green taxonomy to classify environmentally sustainable economic activities. Progress on these reforms will determine the disbursement of the remaining funds, with US$100 million already released in June.
Expansion Plans
🇲🇽 Unicorn Stori is expanding into Colombia
Mexican Fintech Stori is expanding into Colombia with a US$100 million investment over the next three years. Stori, which already has 3 million clients in Mexico, plans to launch its "S Card" in Colombia in September, aiming to attract 500,000 clients in the first year. The card will offer credit limits starting at 200,000 Colombian pesos (around US$ 48). Stori's co-founder, Marlene Garayzar, emphasized Colombia's potential and the company's readiness to serve clients underserved by traditional banks. Recently, Stori raised US$212 million in funding and introduced a new "black card" product in Mexico.
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Abrazo,
Arnaud