Ep. 99: Series A Unlocked
Plus, Finkargo & Koltin Series A, Mercado Pago US$250 million, Rappi IPO plan, and more.
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Follow The Money
🇨🇴 Finkargo secures a US$95 million Series A extension
The Colombian Fintech founded in 2021 has secured US$95 million in a Series A extension to expand its import financing services for small and medium businesses in Colombia and Mexico. The round now combines US$20 million in capital and US$75 million in debt. With 450 clients and over 4,000 import operations valued at US$510 million, Finkargo aims to triple its operations by enhancing its offerings, including freight financing, supplier verification, merchandise inspections, and transport insurance.
Sector: FinTech
Founders: Tomas Shuk, Andrés Ferrer, Santiago Molina
Investors: QED Investors, Community Investment Management (CIM), Quona, Flybridge, Nazca, Maya, OneVC
🇲🇽 Koltin raises a US$7.3 million Series A
Koltin is a startup offering private health insurance for seniors. It combines traditional insurance with personalized care to improve the health and financial resilience of aging Mexicans. Partnering with a major insurance carrier, Koltin provides coverage and tech-enabled aging plans, allowing virtual and in-person care. The funding will help Koltin expand its services and continue its rapid growth.
Sector: InsurTech
Founders: Eduardo Ortiz, Carmen Rosillo
Investors: Left Lane Capital
Mercado Pago secures US$250 million in financing
Mercado Pago secured US$250 million in financing from JP Morgan to expand credit offerings to small and medium-sized enterprises (SMEs) and individuals in Mexico. This investment will help the Argentine Fintech, a subsidiary of Mercado Libre, grow its lending portfolio, which reached US$1.5 billion by mid-2024. The deal includes JP Morgan acquiring personal and business loans from Mercado Libre's Mexican credit portfolio. Mercado Pago, which aims to become a licensed bank in Mexico, is currently the second most-used financial app and plan to enhance its services to compete as a leading digital bank.
Sector: FinTech
Founders: Pedro Rivas
Investors: JP Morgan
Startups News
Former Mastercard executive to join Fintech startup Pomelo
Former Mastercard executive Carlo Enrico has invested in the Argentine Fintech startup Pomelo and joined its board. Enrico, who previously led Mastercard’s Latin America and Caribbean division, brings extensive experience from roles at Goldman Sachs and BancoPosta. Founded in 2021, Pomelo focuses on building financial infrastructure, including card issuing and processing services, and operates in six countries with over 100 clients. Enrico’s expertise in negotiating deals with major companies like Nubank and Mercado Pago is expected to benefit Pomelo’s expansion.
🇨🇴 Arkangel IA uses A.I. to aid early disease detection
Arkangel IA is a Colombian startup founded by Laura Velásquez and José David Gómez that uses artificial intelligence to aid early disease detection and improve healthcare access through predictive models. Motivated by personal tragedies and a desire to prevent similar outcomes, the team now has impacted over 68 million people across 18 countries by offering accessible solutions for disease prevention. With no traditional background in medicine or engineering, the founders developed a unique, code-free system that has been implemented globally, earning recognition like the Everis Global Award for its social impact.
VC - M&A News
Rappi en route for an initial public offering (IPO)
Rappi, the Colombian delivery unicorn, expects to be ready for an initial public offering (IPO) within the next 12 months, following significant growth and profitability. Since its founding in 2015, the company has expanded to nine countries, with operations in 400 cities, and has become one of Latin America's most valuable startups. Rappi’s revenue has doubled over the past three years, and it now funds its growth through earnings rather than external capital. Although the IPO timeline isn't fixed, Rappi’s leadership is focused on readiness when the timing is right. The recent acquisition of the Indian supply chain startup Fountain9 could also signal worldwide expansion plans fueled by the IPO capital injection and exposure.
🇲🇽 Veikul acquired Monterrey-based Dropin
Mexican startup Veikul, focused on mobility and logistics services, has acquired Monterrey-based Dropin, a platform offering shipping and logistics solutions to businesses. This merger aims to enhance service efficiency and expand market presence by leveraging synergies between their technologies and operations. Veikul, founded in 2022, connects drivers with companies and has completed over 300,000 tasks. Backed by a recent US$3 million seed round, Veikul's acquisition will strengthen its operational and technological capabilities, while Dropin, known for optimizing last-mile logistics, will benefit from Veikul’s scale to expand its services.
Economy
Moody’s upgraded Costa Rica's credit rating
Moody's has upgraded Costa Rica's credit rating from B1 to Ba3, citing improved debt management and economic growth, while maintaining a stable outlook. The agency highlighted Costa Rica's reduced debt-to-GDP ratio, which stood at 61.1% in 2023, driven by primary surpluses and a strong economy, coupled with a 5.1% GDP growth fueled by external demand and foreign direct investment. Costa Rica's potential in nearshoring opportunities and constitutional reforms for debt issuance could further enhance its financial position.
Expansion Plans
🇦🇷 Seeds is expanding into Mexico
Seeds is a platform aiming at revolutionizing the labor market in Latin America by connecting top professionals with companies across the region. Focused on high-level talent for specific projects, only 10% of applicants are accepted, ensuring quality matches for companies. Seeds is now expanding internationally, with Mexico as a key market, capitalizing on the rise of remote work and offering specialized expertise in sectors like technology, data analysis, and marketing.
First edition of the Dubai 2024’s Soft Landing Program
The Arab-Colombian Chamber of Commerce, in collaboration with the University of Dubai, has launched the first edition of the SoftLanding Program Dubai 2024, aimed at helping Latin American tech startups expand into this new market. Taking place from October 6-17 in the UAE, the program provides mid-stage startups from Colombia and Latin America with access to Dubai's innovation ecosystem. The highlight of the program include participation in the Gitex Global-North Star event, with select startups pitching to international investors.
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Arnaud