Episode 9 - the usual suspects are back: FinTech and E-commerce
Welcome to Scenius Mexico: Your weekly newsletter on technology, innovation, and startups in Mexico.
This week the usual suspects are back: FinTech and E-commerce:
Some interesting news from Contalink, a startup operating on the corporate side of the FinTech sector, and Riogrande, another e-commerce aggregator differentiating from competitors by building online brands itself.
The corporate fintech space is a huge playground waiting to be disrupted and was recently highlighted by a16z as a trend to follow closely.
For the e-commerce aggregator Startups, building brands in-house is a smart move as it allows them to understand first-hand the challenges faced by the companies they are acquiring; and when one finds traction, it also is a good investment as it essentially counts as a “free” acquisition.
Funding Rounds
Cura Deuda raises US$1.3 million to help people get out of debt
Founded in 2011, the startup began as a legal and financial service firm to help people pay off their debt in Mexico.
They recently integrated more technology into their operation and developed an app to manage the process of paying off debt.
This new business model attracted attention from investors, leading to their first round of funding.
Now, the FinTech plans to further develop its technology and expand its services to other Latin American countries.
Sector: FinTech - Credit
Total Raised: US$1.3 million
Founders: Daniel Carvallo, Javier Ruiz Galindo Gutierrez
Investors: Magma Partners, Anteris
Contalink raises US$2.1 million to bring accounting into the cloud
Founded in January 2019 by Eduardo Williams and Carlos Salinas, who previously ran an IT consulting firm, the startup has developed a modern accounting software for the Mexican market.
Operating under a SaaS business model, their product is helping accountants save time by automatizing repetitive tasks and bringing new technologies to their day-to-day processes.
The Mexican market is dominated by two old-school software companies and represents a big opportunity for new entrants.
This funding round follows Contalink’s participation in Y Combinator S21. The funds will be used to make improvements to the product, hire new team members, and gain market share.
Sector: FinTech - Accounting
Total Raised: US$2.1 million
Founders: Eduardo Williams, Carlos Salinas
Investors: Y Combinator, 500 Startups, Scribble Ventures, Kalonia, Soma Capital, Liquid2 Ventures, FoundersX, SCM Ventures, Super Capital One, Chandaria Capital, Super Capital VC
Riogrande raises US$12 million to boost e-commerce for brands
Founded a year ago and positioning itself as an e-commerce brands incubator, the startup closed an impressive seed round, likely including a big chunk of debt.
Riogrande incubates its own brands, partners with entrepreneurs to boost their e-commerce businesses, and acquires small and medium-sized online businesses to scale them on larger platforms such as MercadoLibre and Amazon.
With the new capital, the startup will seek to improve its technology to automate the growth process of e-commerce brands and continue making strategic acquisitions.
Sector: E-commerce - Aggregator
Total Raised: US$12 million
Founders: Tono Mandly, Federico Naides, Ivan Amelong Investors: Y Combinator, Wollef Ventures, Arielle Zuckerberg, Matteo Franceschetti, Michael Ma, Simon Borrero, Justin Mateen, and Ullas Naik
Vexi raises US$24 million in debt and equity for its credit cards product
Founded in 2016, and bootstrapped so far, the company spent the first years developing the main systems of its product: the payment processor and the core credit card system.
Two of the co-founders met at Citibank and were later joined by Cinthia Merlos as CPO & CMO.
The equity portion of the financing was led by Magma Partners, while Accial Capital led the debt funding. Still, Gustavo Rojo Blasquez, CEO and Co-Founder, has stated that the Startup has a higher annual revenue run rate than the total equity they have raised so far.
Sector: FinTech - Credit cards
Total Raised: US$25 million in Debt & Equity
Founders: Gustavo Rojo Blasquez, Carlos Roberto Franco, Cinthia Merlos
Investors: Magma Partners, Alpha4Ventures, Village Capital, Pomona Impact, Noa Capital
General News
Ozon, the Kavak for motorcycles, is growing in Mexico
Founded by two Colombians, and mimicking Kavak’s business model, the Startup gained traction during the pandemic when the delivery sector exploded.
Although founded in Colombia, the Mexican market already accounts for 90% of their activity and the team wants to gather momentum following their last US$4 million seed round.
Currently operating only in Mexico City, Onzon plans to launch in new cities in the near future.
The Spanish startup TaxDown wants to help you deal with the Mexican SAT
Starting with Mexico, the company is eyeing a global expansion to Latin America.
The product is using Artificial Intelligence to facilitate the process for their users to fill out their annual tax return with the national tax system Sistema de Administración Tributaria (SAT).
They also offer complementary fiscal services to make sure everything is in order.
TaxDown promises to be the best alternative for annual tax filling in Mexico, while saving users money at the same time.