Nubank Reshapes Colombian Banking | Ep. 118
Plus, Niko Energy $23 million funding, Ualá AI-powered Chatbot, Tecspal in China, and more!
Your weekly newsletter on technology, VCs, and startups in Spanish-speaking Latin America.
This week, Nubank rolled out its fixed-income product in Colombia.
In Mexico, the product is known as "Cajitas Congeladas" but over in Colombia, they chose the name CDT Nu to tap into the strong local savings culture and to use a term better known among Colombians: CDT.
Why does it matter? CDT Nu offers an effective annual rate of 11.1% for a 4-month term. It’s one of the most attractive returns in the market.
For consumers looking for short-term gain, it's a no-brainer, especially with traditional banks' savings account rates dropping to 9.5% E.A.
Nubank is rehashing its Mexican success story with an aggressive growth strategy that could disrupt the Colombian financial scene.
Considering that only 3 out of every 100 Colombians currently have a CDT, there's a massive untapped potential in the market waiting to be seized.
The ripple effect could mean a more competitive and innovative banking market for everyone.
Now the question is: will traditional Colombian banks, with their legacy systems and different customer bases, scramble to match these rates or pivot to other value propositions?
Follow The Money
🇲🇽 Niko Energy raises US$23 million in funding
Niko Energy is a solar startup building Mexico’s first virtual power plant (VPP) to address the country’s growing energy demand and grid instability. Initially focused on financing and facilitating solar installations for homeowners and small businesses, Niko has expanded its strategy to include battery storage solutions and larger corporate clients. The company has raised US$8 million in equity, along with US$15 million in debt, to fund its VPP initiative and scale its decentralized energy portfolio. With a 20% monthly growth in serviced projects, Niko aims to aggregate solar energy, home batteries, and EV chargers to create a more resilient and reliable energy system in Mexico.
Sector: EnergyTech
Founders: Edoardo Dellepiane, Raffaele Sertorio
Investors: QED Investors, 468 Capital, Picus Capital
🇺🇸-🇲🇽 GenLogs raises US$14.6 million to go to Mexico
GenLogs is a freight intelligence platform that utilizes roadside sensors and cameras to collect data on trucks and trailers, applying methodologies inspired by counterterrorism operations to monitor equipment trends. Recently, GenLogs introduced a free investigative service to combat freight theft, which costs the industry US$800 million annually. With the new funding, GenLogs plans to enhance its intermodal insights by installing sensors at key ports to track freight flows from end to end and expand its operations into Mexico, starting along the border and eventually covering major highways throughout the country.
Sector: Freight Intelligence
Founders: Joe Sherman, Ryan Joyce, Blake Balch
Investors: Venrock, HOF Capital
Startups News
🇨🇴 Nu Colombia Launches a CDT Product
Nu Colombia, is launching a new Certificate of Deposit (CDT) product with 90- and 120-day terms that will deliver an effective annual yield of up to 11.1%. This initiative comes amid a decline in Banco de la Republica’s interest rates, prompting Nu to adjust its savings yields to 9.5% (or 10% for Nu Plus members) and shift funds into the new CDT product, which requires a minimum deposit of COP$50,000. Additionally, Nu is exploring further integration with immediate payment solutions like Bre-B to enhance its overall offerings in Colombia.
🇨🇱 Tenpo on its way to become Chile's first Neobank
Paytech Tenpo has received authorization from the Chilean Commission for the Financial Market (CMF) for its existence and approved bylaws, marking a crucial step toward becoming Chile's first Neobank. With the provisional board now in place, the startup must next secure a full operational license by demonstrating its readiness to begin operations. Backed by Credicorp, CEO Fernando Araya emphasized that this milestone paves the way for Tenpo to revolutionize the banking experience in Chile through technology and innovation, promising significant benefits for consumers once the regulatory process is fully completed.
🇦🇷 Ualá Launched an AI-powered Chatbot
Fintech Ualá has launched an AI-powered chatbot called Uali, built on OpenAI’s GPT-4 model. Uali not only understands user queries but also proactively offers personalized solutions to enhance the customer experience. Pablo Guzzi, Ualá’s Chief Data & Analytics Officer, stated that this collaboration marks a significant milestone in delivering superior service. Initially available in Argentina, the platform will soon expand to Mexico and Colombia, with proactive support capabilities integrated into the Ualá app.
Nubank Launches Mobile Operator NuCel
NuCel is the new mobile operator launched by Nubank in Colombia. It aims to compete with major carriers like Claro and Tigo by offering flexible, affordable plans starting at $37,000 (approx. US$9). Fully integrated into the Nubank app and initially available in Brazil for eSIM-compatible devices, the service provides unlimited calls, free WhatsApp data, and exclusive app benefits with automatic credit card billing. As part of Nubank's strategy to expand its ecosystem, NuCel is expected to eventually enter the Colombian market, further diversifying its offerings.
VC - M&A News
🇧🇷 BYX Capital acquired Nvio from Bitso
BYX Capital, a Fintech specializing in payroll loans, has acquired Nvio, a direct credit company previously owned by Bitso. The acquisition, pending approval from Brazil's Central Bank, will strengthen BYX’s banking structure and enhances transaction security. The company is now diversifying into collateralized credit, including home equity, vehicle financing, and receivables-backed loans, offering lower interest rates due to reduced risk. It is worth noting that Nvio is authorized as an Electronic Payments Institution in Mexico, suggesting that BYX Capital may leverage this license to enter the Mexican market and expand its footprint beyond Brazil.
BID Invest to Invest US$5 Million in Mundi Ventures Latam Fund I
BID Invest is set to invest US$5 million in the Mundi Ventures Latam Fund I, a US$100 million vehicle to boost access to insurance products in Latin America and the Caribbean. This investment aims to address the region’s significant protection gap—where insurance penetration is only 3.1% of GDP compared to a 7% global average—by supporting up to 15 companies across more than 10 countries. In addition to providing growth capital and performance-based incentives for measurable social impact, the fund will also offer advisory services to enhance financing access for SMEs and women-led businesses, ensuring all investments meet the 2X Challenge criteria for 2027.
Economy
🇻🇪 Telefónica to Invest US$500 Million in Venezuela
Telefónica is set to invest US$500 million in Venezuela to enhance its 4G network and deploy 5G technology using the Dynamic Spectrum Sharing scheme in the newly acquired 2,600 MHz band. The rollout includes the installation of 805 nodes across the country, aiming to achieve near-national coverage and significantly improve connectivity, speed, and stability, particularly in urban and densely populated areas. This major investment is expected to strengthen Venezuela's telecommunications infrastructure and provide a better user experience across both 4G and 5G networks.
🇵🇾 Paraguay New Payment System Law
The Banco Central del Paraguay is advancing a new National Payment System Law designed to enhance security, transparency, and interconnectivity across all payment services in the country. The proposal aims to extend regulatory oversight to systems currently outside its purview—such as Fintechs, credit card providers, and electronic payment service entities—by setting standardized operational rules and maximum fee limits. The law will also modernize settlement processes, integrate digital methods for tasks like cheque truncation, and ensure that all electronic transactions carry the same legal weight as traditional ones. Liana Caballero, a board member of the BCP, emphasized that the new framework is intended to foster innovation, financial inclusion, and efficiency while safeguarding consumer interests.
Expansion Plans
🇵🇪 Do Payment is Growing in Latin America
Do Payment, a Peruvian Fintech specializing in real-time payment solutions, is expanding its operations to Chile, Colombia, Mexico, Ecuador, and Panama. The startup aims to process over US$700 million in transactions by 2025 and achieve a 30% growth rate by addressing the delays in fund crediting through its unified regional API.
🇺🇾 Tecspal is Expanding into China
Tecspal is a Uruguayan startup specializing in technological equipment for remote work. Founded in 2022 and already operating in over 120 countries, Tecspal aims to tap into the Chinese market to validate and scale its solutions for simplifying remote work logistics. Despite challenges such as language barriers, time differences, and international payment complexities, the company is experiencing rapid revenue and team growth, recently moving to a new office in Montevideo. To further bolster its expansion, one of its directors will be based in Manila to facilitate local negotiations and integration with new partners.
Love seeing more LATAM <> Asia bridges being built!
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Abrazo,
Arnaud
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