LatAm Unicorns Shake‑Up
Ep. 127: Kavak Down Round, Toku $48 Million Series A, Rappi Change in Leadership, and more!
Your weekly newsletter on technology, startups, and VCs in Spanish-speaking Latin America.
For Semana Santa I was expecting a quiet week. Good thing I didn’t take any days off, because it turned out to be the opposite with two of Latin America’s most iconic unicorns, Kavak and Rappi, dominating last week’s headlines!
First, Kavak announced a massive down round, slashing its valuation by 75%, from US$8.7 billion in 2021 to US$2.2 billion today. On one hand, the team successfully raised US$127 million from existing backers SoftBank and General Atlantic, a clear vote of confidence. But on the other, a down round of this magnitude is always a red flag and leaves little room for future fundraising short of an IPO. It’s a last‑chance deal, and we have to recognize the founders’ grit in making that hard call.
The same week, Sebastián Mejía, co‑founder and president of Rappi, stepped back from day‑to‑day operations just as the company sold RappiCard to Banorte, supposedly one of the super‑app’s few profitable units. Hard to spin that in a rosy light. Then again, SoftBank is also a major Rappi investor, so a Kavak‑style deal may be brewing.
On a brighter note, ActiveCampaign acquired Mexico‑based startup Hilos. I’m thrilled for the team because this gives Hilos a great home to keep pursuing its mission, and proud that Florian was my very first podcast guest (Episode in Spanish here).
Now, let’s dive into more interesting news!
Follow The Money
🇲🇽 Kavak raised US$127 million in a down round
Mexico‑based used‑car platform Kavak has raised US $127 million in a down round that cuts its valuation by 75% to US $2.2 billion, down from US $8.7 billion in 2021. The round, co‑led by SoftBank and General Atlantic, also brought in US $400 million in debt from Goldman Sachs and HSBC to reinforce Kavak’s financing arm, Kuna Capital. The startup will channel the funds into strengthening its core operations in Mexico, which now account for roughly 60 percent of revenue. After retreating from earlier pushes into Colombia and Peru, Kavak aims to reach profitability across all markets by the end of 2025. This valuation reset, the steepest disclosed drop among unicorns minted in 2021, should give the startup a more sustainable financial base to get a shot at an IPO within three to five years.
Sector: Marketplace
Founders: Loreanne Garcia, Carlos Garcia Ottati, Roger Laughlin
Investors: SoftBank, General Atlantic, Goldman Sachs, HSBC
🇲🇽 Toku raised a US$48 million Series A round
Mexican fintech Toku is specializing in accounts receivable automation. Founded in 2020, Toku's platform integrates with enterprise resource planning (ERP) systems to automate billing, payment reconciliation, and customer communications across channels like email, SMS, and WhatsApp. The startup plans to use the new funds to expand its operations in Mexico, Brazil, and Chile, and to accelerate product development. Serving over 450 clients, including Santander, Chevrolet, and MetLife, Toku reported doubling its revenue and tripling its total payment volume in 2024.
Sector: FinTech
Founders: Cristina Etcheberry, Enzo Tamburini Heinz
Investors: Oak HC/FT, Gradient Ventures, F-Prime Capital, Clocktower, Y Combinator, Honey Island
🇲🇽 Belvo raises US$15 million in new funding
Open Finance platform Belvo has secured US$15 million in funding to enhance its financial data and payment solutions across Latin America. Belvo plans to utilize the funds to expand its product suite, advance its AI capabilities, and roll out next-generation payment solutions like Pix Automático in Brazil and Direct Debit in Mexico. Currently, the platform serves over 150 clients, including BBVA, Banamex, Bradesco, Santander, Mercado Libre, and Creditas, and facilitates over 2 million account-to-account transactions monthly, amounting to an annualized total payment volume exceeding US$500 million.
Sector: FinTech
Founders: Pablo Viguera, Oriol Tintoré
Investors: Quona Capital, Kaszek, Kibo Ventures, Future Positive, Citi Ventures, Y Combinator
🇨🇱 AdmiralONE raise US$462,000 in angel funding
Chilean RegTech startup AdmiralONE has raised US$462,000 in angel funding to expand its compliance automation platform. The team used the fund to acquires two local startups, Confiden and GeniaControl, which specialize in risk management and legal compliance. Additionally, the team appointed Daniel Vargas as its new Co-Founder and CTO. The startup aims to simplify regulatory compliance for businesses, particularly in light of new regulations such as Chile’s Law 21.595 on economic crimes and UAF Circular No. 62, which require organizations to implement due diligence processes, whistleblower channels, internal policies, training, and reporting of suspicious activities.
Sector: RegTech
Founders: José Ignacio Camus, Daniel Vargas
Investors: Business Angels
Startups News
🇨🇴 Rappi co-founder to step down
Sebastián Mejía, co-founder and president of Rappi, is stepping down from his operational role after nearly a decade at the company. Mejía announced the decision in an open letter, stating that he will continue to serve on the board of directors. His departure comes as Rappi continues to evolve as a multiservice platform in Latin America, operating in over 250 cities. Mejía’s exit marks a shift in leadership for the startup, which has undergone significant changes since its founding and now faces a competitive and rapidly changing global tech landscape.
🇲🇽 Nu México transition into a fully licensed bank
Nu México, the Mexican subsidiary of Brazilian fintech giant Nubank, has received preliminary approval from Mexico's National Banking and Securities Commission (CNBV) to transition into a fully licensed bank. Currently operating as a Sociedad Financiera Popular (Sofipo), Nu México has amassed assets exceeding US$ 6 billion, making it the largest Sofipo in the country. The transition to a full banking license will enable Nu México to expand its services to include payroll accounts, insurance, and investment products, positioning it to compete directly with Mexico's traditional banking institutions.
VC - M&A News
🇲🇽 Banorte fully acquires RappiCard
Banorte, one of Mexico's largest banks, has acquired the remaining 44.28% stake in Tarjetas del Futuro, the joint venture behind RappiCard, for US$50 million, securing full ownership of the digital credit card business. The acquisition includes a 15-year exclusive agreement to offer Banorte's financial products within the Rappi app ecosystem, reinforcing its strategy to engage tech-savvy, younger consumers through hyper-personalized services. Launched in 2021, RappiCard has issued over 1.14 million credit cards, with a portfolio valued at approximately US$288 million. This move follow Banorte's pausing of its digital bank, Bineo, as it seeks a strategy to expand its presence in Mexico's competitive fintech landscape. The transaction is pending regulatory approval from Mexico's competition authority.
🇺🇸 ActiveCampaign acquired Mexico-based Hilos
ActiveCampaign, a U.S. marketing automation platform, has acquired Hilos, a Mexico City-based startup specializing in WhatsApp automation, for an undisclosed amount. Founded in 2021 and part of Y Combinator's Summer 2021 batch, Hilos enables businesses to automate personalized one-on-one messaging on WhatsApp using no-code tools and cross-channel tracking. ActiveCampaign plans to integrate Hilos' technology into its platform in the coming months, allowing users to build WhatsApp automations alongside email, SMS, social media, and CRM workflows. This acquisition aims to enhance ActiveCampaign's cross-channel marketing capabilities, providing businesses with a unified platform to manage customer interactions across multiple channels. A huge congratulation to my friends Florian Raetzer and Alfonso Lizárraga for the exit.
Expansion Plans
🇨🇴 Nequi is exanding into Guatemala and El Salvador
Colombian Neobank Nequi has expanded into Guatemala and El Salvador to enhance financial inclusion in these countries. In El Salvador, Nequi operates through Bancoagrícola, Bancolombia's local subsidiary, and has attracted 25,000 users within its initial four months. The platform offers services such as savings accounts, remittance processing, and plans to introduce credit products based on user behavior. Recognizing that remittances constitute 23% of El Salvador's GDP, Nequi has also partnered with Payoneer to facilitate international money transfers. In Guatemala, Nequi has recently launched operations, targeting the country's low banking penetration rates.
🇧🇷 Onfly is exanding into Mexico
Brazialian corporate travel and expense management platform Onfly has raised US$40 million in a Series B round to support the startup's expansion efforts in Mexico that began last year. Onfly offers an all-in-one solution that integrates travel booking, expense tracking, and policy compliance, aiming to streamline corporate travel processes across Latin America.
🇪🇸 Insurama is expanding into Colombia
Insurama, a Spanish insurtech focused on providing insurance for electronic and high-value technological devices, officially launched in Colombia. The startup aims to establish a strong footprint across Latin America by offering digital insurance solutions tailored to the needs of local consumers. The team plans to differentiate itself in Colombia by partnering with local retailers, ecommerce platforms, and banks to integrate insurance offerings directly into the purchase journey. Its expansion comes at a time when demand for embedded and on-demand insurance services is growing across the region, particularly among younger and digitally savvy consumers.
Support the newsletter and get exclusive content and perks here:
See you for the next edition. Have a question or any feedback? Just hit reply. I'd love to chat!
Check out Scenius Podcast on Spotify & YouTube.
Want to get your brand in front of thousands of founders, investors, executives, and startup operators? Answer directly to this email.
Abrazo,
Arnaud
Follow me on:
Hello Arnaud,
I hope this communique finds you in a moment of stillness.
Have huge respect for your work line.
We’ve just opened the first door of something we’ve been quietly handcrafting for years—
A work not meant for everyone or mass-markets, but for reflection and memory.
Not designed to perform, but to endure.
It’s called The Silent Treasury.
A place where conciousness, truth and judgment is kept like firewood: dry, sacred, and meant for long winters.
Where trust, vision, patience, resilience and self-stewardship are treated as capital—more rare, perhaps, than liquidity itself.
This first piece speaks to a quiet truth we’ve long sat with:
Why many modern PE, VC, Hedge, Alt funds, SPAC, and rollups fracture before they truly root.
And what it means to build something meant to be left, not merely exited.
It’s not short. Or viral.
But it’s a multi-sensory experience and built to last.
And, if it speaks to something you’ve always known but rarely seen heartily expressed,
then perhaps this work belongs in your world.
The publication link is enclosed, should you wish to experience it.
https://helloin.substack.com/p/built-to-be-left?r=5i8pez
Warmly,
The Silent Treasury
A vault where wisdom echoes in stillness, and eternity breathes.