Mexico Billion Dollar Club | Ep. 122
Plata hit a US$1.5 billion valuation.
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
Mexico just got its first new unicorn in two years, bringing its billion-dollar startup club to nine members.
Fintech startup Plata hit a US$1.5 billion valuation after raising US$160 million in a Series A round.
Founded in 2023, Plata focuses on consumer credit, offering financial products through a mix of digital banking and in-person ambassadors who help users set up accounts. The company recently secured a banking license in Mexico, further solidifying its position.
With startup investment still sluggish, Plata’s success could be an early sign of a new wave of startup growth in the region.
Fingers crossed!
Follow The Money
🇲🇽 Fintech Plata Achieves Unicorn Status
Mexican Fintech Plata has achieved unicorn status after securing US$160 million in a Series A funding round, reaching a valuation of US$1.5 billion. The startup, which focuses on consumer credit products and recently obtained a banking license in Mexico, reported having one million active credit card users. Despite a challenging funding environment for Latin American startups, Plata's milestone marks the first new unicorn in Mexico since 2022. Founded in April 2023 by former Tinkoff Bank executive Neri Tollardo, Plata has raised US$750 million in capital and debt since inception. The Fintech differentiates itself by combining digital financial services with an in-person ambassador network to onboard customers. With only 25% of Mexicans using digital banking despite high smartphone penetration, Plata sees a significant opportunity for growth in financial inclusion.
Sector: FinTech
Founders: Neri Tollardo
Investors: Kora, Moore Strategic Ventures
🇨🇱 Vita Wallet secures a US$750K financing
Chilean paytech Vita Wallet has raised US$750,000 to enhance its technology and expand its international money transfer services. Vita Wallet operates as a digital wallet enabling individuals and businesses to send and receive cross-border payments from Chile and Colombia to over 50 destinations. This funding round will help Vita Wallet integrate with ABC Din’s app, giving over 400,000 users direct access to its services. Currently, Vita Wallet serves over 35,000 customers and 150 businesses, with a transaction volume exceeding US$65 million.
Sector: PayTech
Founders: Joel Zambrano
Investors: ABC Din’s CVC, Fen Ventures
🇲🇽 Mutuus secures a US$3.2 million financing
Mutuus is a digital healthcare membership platform, offering no-deductible hospital coverage, telemedicine, and discounts on in-person services. Mutuus provides businesses and individuals with an alternative to traditional insurance. The investment will help enhance its AI-driven platform, improve emergency services, and strengthen partnerships with hospitals to expand healthcare benefits, particularly for SMEs. Currently serving over 13,000 members, Mutuus has covered more than 4,000 hospital bills.
Sector: HealthTech
Founders: Jean-Louis Brunet Torres
Investors: Amador, Latin Leap, Tantauco Ventures, Preface Ventures, Cuesta Partners, G2 Momentum
🇨🇱 BioElements secures a US$30 million financing
Chilean Biotech BioElements secured a US$30 million investment round led by BTG Pactual’s ESG impact fund to expand its sustainable bioplastics business across Latin America. The startup, which had never raised external capital since its founding in 2014, plans to grow by 83% in the region, focusing on retail, industrial, and agricultural solutions. The funds will primarily support commercial expansion in Mexico and Brazil, with future plans for the U.S., alongside strengthening its R&D division. BioElements, recognized for offering alternatives to conventional plastics, aims to reduce environmental impact while generating economic and social benefits.
Sector: BioTech
Founders: Ignacio Parada
Investors: BTG Pactual
Startups News
🇨🇴 Somos Internet to expand its fiber-optic infrastructure in Bogotá
The Colombian broadband startup Somos Internet, will invest US$3 million to expand its fiber-optic infrastructure in Bogotá, aiming to add 10,000 new users by the end of 2025. The company, which has grown rapidly in Medellín with 460 km of fiber deployed, sees Bogotá as a priority due to poor internet quality and high costs in the city. With a current footprint of over 700 km of fiber and a user base that grew from 14,000 in 2023 to 30,500 in 2024, Somos Internet plans to reach 65,000 users by 2025 while maintaining a strong customer satisfaction rating.
🇺🇾 Prometeo launches Borderless Banking
Uruguayan Fintech Prometeo has launched Borderless Banking to streamline B2B financial operations between the U.S. and Latin America. This new solution allows businesses to offer local bank accounts, automate collections, track international transfers in real time, and integrate account verification and fraud prevention. Available in the U.S., Mexico, Brazil, Colombia, and Argentina, Borderless Banking addresses challenges in cross-border financial infrastructure, where only 30% of transactions are digitized. Prometeo, founded in 2018, provides open banking solutions through APIs that facilitate payments, identity verification, and financial management, with over 1,500 connections to more than 1,200 financial institutions across 11 countries.
🇨🇱 Betterfly closes business in 5 countries
Betterfly, the Chilean insurtech startup, is restructuring its operations by closing business in Colombia, Ecuador, Peru, Argentina, and Brazil. The move is to focus on its 3 key markets: Chile, Mexico, and Spain, which generate 94% of its revenue. As part of this shift, Betterfly laid off 30 employees and is refining its core offerings in health, prevention, and insurance. Despite the downsizing, the startup maintains a strong financial position, as of April 2024, Betterfly reported annual revenue of US$33 million and held US$76 million in cash reserves. Betterfly operates under a subscription model, offering companies a platform for employee benefits, including health coverage, medical access, and flexible perks, and plan an expansion to the U.S. by 2026.
VC - M&A News
GRIDX partners with Chilean startuplab01
GRIDX, a biotech venture capital fund in Latin America, has partnered with startuplab01 to support the development of science-based startups in Chile. This collaboration aims to identify and support local scientists and entrepreneurs in transforming their research into globally scalable businesses. Startuplab01, backed by Corfo and Fundación Chile, provides high-tech labs, coworking spaces, and acceleration programs, ensuring early-stage startups gain both scientific validation and commercial expertise. If you’re interested in learning more about the unique VC model of GRIDX, I wrote a long form analysis here.
🇨🇱 DataScope acquired Safety for Life
DataScope, a Chilean startup optimizing operations through process automation, has acquired Safety for Life, a company specializing in digital risk management with over a decade of experience. This acquisition strengthens DataScope’s position in workplace safety, combining its advanced technology with Safety for Life’s expertise in occupational health and safety (OHS). The integration aims to help businesses comply with new regulatory requirements while enhancing efficiency.
Economy
🇲🇽 E-commerce in Mexico grew by 20%, reaching US$38 billion
E-commerce in Mexico grew by 20% in 2024, reaching a value of US$38.84 billion, maintaining six consecutive years of double-digit growth, according to the Mexican Online Sales Association (AMVO). With an 84% penetration rate among digital buyers, Mexico ranks among the top 15 countries in online retail sales contribution, surpassing markets like Japan and Argentina. Growth has been driven by increasing adoption among lower-income and unbanked populations, with cash payments now representing 26% of transactions.
Expansion Plans
🇧🇷 digital bank Inter & Co is expanding to Argentina
Brazilian digital bank Inter & Co is expanding to Argentina through a partnership with Grupo Bind, offering global accounts for investments and international payments. With 36 million customers across Brazil, the U.S., and now Argentina, Inter targets digital nomads, freelancers, and users seeking cross-border financial solutions. Unlike traditional banks, Inter will not seek a banking license in Argentina but will operate through its app, allowing users to manage finances globally without regulatory constraints. This move leverages Argentina’s large fintech-savvy population and strong ties with Brazil.
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Abrazo,
Arnaud
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