After a record-breaking June – when Latin American fintech attracted US$ 237 million in equity investments– the region broke that record again in July with fewer, but larger, investments. Nubank announced a mega-round of US$ 400 million lead by the growth equity firm TCV, increasing its valuation from US$ 4 billion to US$ 10.4 billion. Now, Nubank is one of the world’s largest unicorns – and top 3 in the fintech industry.
Although there were some rumors that Softbank would participate in this new Nubank round, in the end, it decided to bet on another digital bank – although not exactly a fintech: Banco Inter, which IPO’d last year. Softbank bought most of the US$ 341 million follow-on offering, which left Banco Inter’s valuation at US$ 6.6 billion.
Besides these massive investments, we saw three other smaller deals from leading fintechs from Brazil and Mexico. One highlight was Nexoos raising a US$ 6.5 million in debentures to increase its lending power.
In total, Latin American fintechs raised US$ 400.3 million in equity investment this month – not counting the capital raised by Banco Inter – in three deals and US$ 6.5 million in a debt round. In this month, Brazil raised 100% of the disclosed rounds, asserting its leadership in the region.
At the same time, the battle between the two largest ride-hailing companies intensified in Latin America and started to enter the financial services: both companies started to offer debit cards to their drivers.
If you enjoy these columns, don’t miss my newly-launched Fintech LatAm Report 1H2019, for a complete picture of LatAm investment trends so far this year. The report summarizes and analyzes the data of the first 6 months of the year: Read it here
Well, let’s jump into the relevant fintech deals and news of July, and stay tuned for the next Fintech Snapshot next month!
- Brazil – The challenger bank Nubank, received US$ 400 million in a Series F round led by TCV with the participation of Tencent, DST Global, Sequoia Capital, Dragoneer, Ribbit Capital, and Thrive Capital
- Brazil – The business lending platform Nexoos raised US$ 6.6 million in a debt round issuing debentures to increase its lending capabilities.
- Brazil – Another lending platform, Peak Invest, raised US$ 317 thousand in a crowd-equity round from Eqseed
- Brazil – Although not a proper fintech and already a listed company, the digital bank Banco Interreceived a US$ 341 million investment during a follow-on share sale from Softbank and other current investors
- Mexico – The Mexican consumer lending platform Smart Lending raised an undisclosed amount from Dila Capital, Jaguar Ventures and some angels
- Brazil – The fintech Creditoo was acquired for an undisclosed amount by a larger fintech also in the credit market, Creditas
- Brazil – So far, nine fintechs have been approved to operate as a financial institution to provide credit. There are still 11 more applicants being evaluated.
- Mexico – The Mexican regulator CNBV, reminded the fintechs that they have until 25th of September to apply for a fintech license to keep operating, otherwise, they could be shut down.
Relevant Moves and Partnerships
- Brazil – Temasek, a big investor from Singapore, is looking to invest more in Brazil after investing US$ 150 million on a venture capital fund managed by Monashees
- Mexico – Beginning of July, Uber started to offer, in partnership with BBVA, a digital account, and debit card, entering the financial services market
- Brazil and Mexico – Didi didn’t take long to respond, it started to offer a debit card to its drivers in both countries later in the same month.
- Brazil – Santander announced that would be launching platforms to compete directly with fintechs.
- Brazil – BTG Pactual announced a partnership with Tezos to issue more than US$ 1 billion in Security Token Offers (STOs) using Tezos’ blockchain.
This post was first published at Iupana: http://iupana.com/opinion_post/fintech-snapshot-july-2019/?lang=en