Ep. 98: A Colombian FinTech in Africa
Plus, Koggi $3.1 million round, Globant new U.S. acquisition, M&A decline in Latin America, and more!
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇨🇴 Koggi raised US$3.1 million in a funding round
The Colombian Proptech & Fintech connects homebuyers with financial institutions to facilitate mortgage access and improve financial education. Founded in 2021, Koggi has partnered with over nine financial entities and increased its processed credits by 300% in the past year, with more than 40,000 clients. With this new capital, Koggi plans to expand its operations in Panama and other Central American markets. The deal also represents National Association of Realtors (NAR) first investment into a startup from Latin America.
Sector: FinTech
Founders: Johanna Cárdenas, Juan Díaz
Investors: Second Century Ventures, National Association of Realtors (NAR)
🇨🇱 Atomic Kitchens raised US $750,000
Chilean Foodtech Atomic Kitchens connects food franchises with underutilized ghost kitchens across Latin America, optimizing kitchen capacity through proprietary data analysis technology. The investment will support the startup's expansion in the region and development of new business lines. With over 900 franchises in countries like Argentina, Chile, and Uruguay, Atomic Kitchens has a GMV of US$20 million.
Sector: Foodtech
Founders: Uriel Krimer, Rudy Palacio Schneider, Daniel Krimer
Investors: Manutara Ventures
Startups News
Mexico Tech Week top 100 early-stage
My friend Mack Meyer is working with Mexico Tech Week to identify the top 100 early-stage companies (prior to Series A funding) in the country. Their goal is to raise visibility with investors in LatAm and the US to help these companies prepare for their next funding round. Please encourage the promising startups you know to apply; the application takes 2-3 minutes to complete and can be done here. The deadline to submit is September 30th. And for those of you going to the Mexico Tech Week in October, see you there!
Conekta new payment solution "Conekta Efectivo"
Conekta has launched "Conekta Efectivo", a payment solution that allows businesses to accept cash for online purchases at over 11,000 locations across Mexico, including popular chains like 7-Eleven and Walmart. In July 2024, 54% of online transactions were made in cash, making this payment method all the more importance for Mexico's e-commerce companies. Conekta Efectivo aims to expand their customer base and increase sales by up to 32% for their clients. With transparent fees and quick fund settlement, the platform supports businesses of all sizes in adapting to the growing digital market.
VC - M&A News
Globant acquired U.S. based Blankfactor
LatAm most famous IT and software development company has strengthened its U.S. strategy with the acquisition of Blankfactor, a company in payments and financial services. This strategic move enhances Globant's presence in this key market while expanding its service portfolio in the financial sector. Blankfactor will bring expertise in payments, banking, and capital markets, enabling Globant to offer more comprehensive solutions.
Economy
Mexico’s judicial reform could slow bank lending
Moody’s warns that uncertainty surrounding Mexico’s judicial reform could slow bank lending, particularly affecting non-bank financial institutions (IFNBs) and sectors like mortgages and small-to-medium enterprises (SMEs). While banks' diversified credit portfolios may not face significant risk, the reform could reduce appetite for new loans in these areas until the impact on legal guarantees becomes clearer. The reform, coupled with recent defaults from non-bank lenders like Crédito Real and Mega, could tighten financing conditions for IFNBs. Moody’s highlights the crucial role of development banks in mitigating reduced credit to SMEs and IFNBs - which include FinTechs preferred legal status “sofomes” and “sofipos”.
M&A in Latin America saw significant declines
Mergers and acquisitions (M&A) in Latin America saw significant declines in both transaction numbers and value by August 2024, according to a report by TTR Data and Datasite. The region recorded 1,763 deals, a 22% drop compared to the previous year, with a total value of US$45.7 billion, down 16%. North American and European companies led the strategic transactions in the region. Key factors for the downturn include political uncertainty and challenging economic conditions. While Brazil and Chile faced steep declines, Mexico was an exception, with a slight increase in deal value despite fewer transactions.
Expansion Plans
🇨🇴 Colombian Minka is expanding into Africa
Colombian Minka is expanding into Africa, where the Fintech market could reach US$65 billion by 2030. There the FinTech is aiming to implement real-time interoperable payment rails. Despite Africa's growing fintech ecosystem, cultural and technological challenges remain, such as heavy reliance on cash and text-based money transfers. Minka plans to mitigate these obstacles through local partnerships and by leveraging its success with Transfiya in Latin America. The company targets countries like Kenya, Nigeria, and South Africa while expecting profitability in 2024, despite an aggressive expansion plans.
Revolut to launch operations in Colombia
The European neobank is preparing to launch operations in Colombia to compete with local players like Nubank and Lulo Bank. The company aims to introduce a wide range of banking products similar to those offered in the UK and Europe, including cross-border transactions and digital assets, depending on local regulations. Currently, Revolut has hired local staff and is working towards obtaining the necessary licenses, with plans to expand in 2025. Revolut's global superapp offers local fintech solutions while connecting users to its international network for seamless financial services across borders.
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Abrazo,
Arnaud