The Global South Is Getting Stronger
Ep. 134: Crabi $13.6 million Series A, Simetrik Series B extension, dLocal acquisition of an African Fintech, and more!
Your weekly newsletter on technology, startups, and VCs in Spanish-speaking Latin America.
The old playbook said Latin American startups should focus on regional markets first, then maybe, if they got lucky, expand elsewhere. To me, that playbook is slowly dying.
This week gave us three additional examples of how capital and talent are now flowing in every direction across the Global South.
First, there's Colombian Simetrik announcing they are processing over a billion transactions daily for clients spanning from Indian fintechs to the Philippines' biggest neobank.
Then you have dLocal acquiring Kenya's AZA Finance. The Uruguayan unicorn's first deal outside Latin America.
Lastly, there's Argentinian Satellogic landing multi-million dollar contracts in Asia Pacific for their Earth observation services.
The opportunity is getting clearer. More Latin American startups should be building for global problems that happen to be especially acute in emerging markets, then using that expertise to expand everywhere those problems exist.
The ultimate goal? Building a stronger tech Global South that can compete with anyone, anywhere.
Follow The Money
🇲🇽 Crabi raises a US$13.6 million Series A round
Mexican InsurTech Crabi has raised a US$13.6 million Series A round to grow its digital-first auto insurance product. Founded in 2017 in Guadalajara, Crabi was the first new licensed auto insurer in Mexico in nearly 30 years. The startup operates as a fully licensed carrier and uses AI to streamline underwriting and claims. In a market where over 70% of vehicles remain uninsured, Crabi addresses a key gap by offering flexible, low-cost insurance products like liability-only plans, often embedded directly into car financing platforms. The funding will fuel further AI development, broker integrations, and nationwide expansion.
Sector: InsurTech
Founders: Daniel Bernardez, Ignacio Martinez, Javier Orozco
Investors: Kaszek, Ignia, 30N, Redwood, Carao, Azuro, Newtopia
🇨🇱 Finnecto raises a US$1.7 million round
Chilean startup Finnecto, automating payments and expense management with AI, has raised US$1.7 million to scale across Latin America. Operating in Chile, Colombia, Peru, and Mexico, the platform helps businesses cut expense cycle time by up to 80% and reduce operating costs by 35% to 40%, while ensuring compliance and control. The funding will support regional expansion, team growth, and product development. Backers include Amador, whose partner highlighted the team’s unique blend of financial and technical expertise to navigate Latin America’s complex regulatory landscape.
Sector: FinTech
Founders: Ariel Puga, Vicente Espinosa
Investors: Amador, Salkantay Ventures, Kfund, BuenTrip Ventures, Hustle Fund, ADN Ventures, Punto Cero Ventures, The Pitch Fund
🇨🇴 Simetrik extends its Series B round with Goldman Sachs
Goldman Sachs Alternatives has extended its backing of Simetrik, raising the Colombian startup’s Series B to US$85 million and bringing total funding to over US$110 million. Known for its automated reconciliation platform, Simetrik helps high-volume, compliance-heavy companies make sense of fragmented financial data. A pain point that, if unresolved, can cost millions in audit failures or missed certifications. It processes over one billion transactions per day and grew revenues by 105% last year. The startup now operates in over 40 countries, with 100+ enterprise clients including top-tier players including two Fintechs from India, two others in the U.S. and Philippines’ biggest Neobank. Another strong signal that Latin American startups are no longer limited to regional growth, but solving global infrastructure problems across developed and emerging markets.
Sector: FinTech
Founders: Santiago Gómez, Alejandro Casas
Investors: Goldman Sachs Alternatives
🇦🇷 Melian raises a US$2 million Seed round
Melian is an AI-powered shopping discovery platform that aggregates products from thousands of online stores, allowing users to search, explore, and buy from multiple retailers through a single, seamless interface. Melian aggregates over 260,000 products from 800+ retailers into one interface, using AI-driven search and image recognition to simplify e-commerce. The new capital will fund U.S. expansion and tech development, building on Melian’s early success as the third most downloaded shopping app in Argentina.
Sector: Artificial Intelligence
Founders: Santiago Ruberto, Mateo Zarate, and Valentín Ratti
Investors: Newtopia VC, Broom Ventures, Hi Ventures
Startups News
🇨🇴 The SIC launched an investigation into Rappi
Colombia’s consumer protection agency, the Superintendence of Industry and Commerce (SIC), has launched an investigation into Rappi for alleged violations of consumer rights and failure to comply with administrative orders. The charges include delivering poor-quality or incorrect products, misleading advertising of its Turbo service, unclear pricing, and ineffective customer support. The SIC also cited Rappi for not properly disclosing terms and conditions in promotions and including potentially abusive contract clauses.
🇲🇽 VEMO partners with TIP México
TIP México and clean mobility company VEMO have formed a strategic alliance to accelerate the adoption of electric and low-emission vehicle fleets in Mexico. Through this partnership, the companies will offer end-to-end consulting services, including vehicle selection, charging infrastructure, and tech integration, to help businesses modernize their fleets and overcome key challenges in transitioning to sustainable mobility. The initiative targets companies with strong decarbonization potential and aims to make clean transportation more accessible across the country.
🇨🇴 Nequi launches "Nequi Negocios"
Nequi is set to launch "Nequi Negocios", a business app that transforms smartphones into point-of-sale terminals, allowing small merchants in Colombia to accept debit and credit card payments, QR codes, and transfers. Developed in partnership with Wompi, the app will soon be available in app stores from July and will offer zero commissions for the first three months. It also includes credit options for entrepreneurs, with loans ranging from COP$500,000 to COP$10 million (approx. US$130 to US$2,600), supported by Colombia’s National Guarantee Fund.
Tether invest in Orionx Series A round
Tether has invested in Chile-based crypto exchange Orionx Series A round (for an undisclosed amount) to support the growth of stablecoin adoption across Latin America. Orionx operates in Chile, Peru, Colombia, and Mexico, and plans to expand its crypto payment systems, tech infrastructure, and B2B services in areas like remittances and treasury management. The move comes as stablecoins gain popularity in the region due to inflation and limited access to traditional banking. With Tether’s backing, Orionx aims to offer faster, low-cost financial tools to underserved communities and boost cross-border payments through its “Remittances as a Service” model.
VC - M&A News
🇺🇾 dLocal to acquire African Fintech AZA Finance
Uruguayan Fintech unicorn dLocal is set to acquire Kenya-based AZA Finance, marking its first acquisition outside Latin America as it deepens its expansion into Africa. Founded in 2013, AZA Finance operates in 17 African countries and has processed over US$9 billion in transactions, specializing in cross-border B2B payments and FX in local currencies. The deal, pending regulatory approval, will give dLocal access to new markets like Botswana, Mozambique, and Guinea, while enhancing its offerings in remittances, treasury solutions, and stablecoin coverage. AZA’s team will join dLocal to boost regional expertise and operational scale.
🇺🇸-🇦🇷 Revelo acquires remote work startup Alto
Miami-based Revelo, a tech company specializing in helping U.S. companies find, hire, and pay remote software developers based in Latin America, has acquired Alto, an Argentina-based company specializing in building and managing remote software engineering teams across 30+ countries. Founded in 2014, Alto has hired over 800 professionals and built a network of 15,000 certified developers, serving clients like BBVA, UNICEF, and 24 Hour Fitness. The acquisition aims to streamline hiring across Latin America, particularly for AI-related roles, by combining Revelo’s infrastructure with Alto’s end-to-end sourcing and management services.
Expansion Plans
🇨🇱 Paytech Flow expands into Mexico
Chilean Paytech Flow has expanded to Mexico as part of its regional growth strategy to simplify digital payments. Founded in 2018 as a spin-off from Grupo Tuxpan, Flow offers an integrated payment platform that supports credit cards, bank transfers, digital wallets, and cash, catering to businesses of all sizes. With over 110,000 clients in Chile and a presence in Peru since 2022, Flow is now focusing its effort on entering the Mexican market to address local digital payment challenges with inclusive and sustainable solutions.
🇦🇷 Satellogic's growth in the Asia Pacific region
Argentinian Satellogic, a high-resolution Earth observation company, has signed a multi-million dollar agreement with a customer in the Asia Pacific region. The deal grants the client access to Satellogic’s NewSat constellation via the Aleph platform, a self-service interface that allows users to schedule and manage their own satellite imagery collections. This partnership highlights the growing demand for flexible, on-demand geospatial data, and reinforces Satellogic’s mission to make Earth observation more accessible and affordable.
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Abrazo,
Arnaud
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