Cashing In on Digital Dreams: Mercado Pago's Mammoth $ 466M Boost for LATAM Expansion
Mercado Pago ignites LATAM with $466M, Galactic Holdings expands with $6.25M and Galgo allies with IFC. Connect with the dynamism of today's fintech.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American Fintech startup scene.
Mercado Pago receives USD $466 million for further expansion
Mercado Pago, the digital bank of Mercado Libre, received a significant capital injection of USD $466 million.
Through its financial entity Mercado Crédito, it managed to secure a private financing line for this amount through Citi subsidiaries.
These USD $466 million will be distributed between Brazil and Mexico, with USD$237 million coming from Banco Citibank SA and USD $229 million from Citibanamex in local currency.
The main objective is to expand credit capacity for consumers, entrepreneurs, and small businesses in Latin American countries.
Vía Contxto
Quick News
Galactic Holdings secures USD $6.25 million for expansion in LATAM
The parent company of TruBit, Galactic Holdings, successfully completed a Series A investment round, raising a total of USD$6.25 million.
This round was led by Galaxy Interactive and DragonFly, with the participation of SHK.
This achievement not only strengthens the company’s position as a prominent player in the world of cryptocurrencies in Latin America but also paves the way for accelerated expansion in the Latin American market and the development of TruBit.
Galactic Holdings operates TruBit Pro, an advanced exchange, and Moneta (MMXN), a stablecoin linked to the Mexican peso. (Contxto)
Galgo and the IFC forge alliance to expand access to automotive credit in Latin America
The International Finance Corporation (IFC), part of the World Bank Group, has formed a strategic partnership with Chilean fintech Galgo, a specialist in digital vehicle sales and financing in Latin America.
This agreement aims to expand and strengthen credit opportunities for society’s most vulnerable sectors, including migrants and those previously without access to banking services.
The company has since evolved to provide credit to over 45,000 individuals in four years, extending its operations to Peru, Colombia, and Mexico.
With IFC’s support, Galgo is well-positioned to expand its impact and reach a broader segment of the population, providing access to financial solutions previously beyond its reach. (Contxto)
N26, German fintech, confirms cessation of operations in Brazil
After two years of activity in Brazil, the German fintech startup N26 has confirmed the end of its operations in the South American country.
The announcement was made through a publication on the company’s website and official N26 LinkedIn profile.
The fintech highlighted the work done by its team and the trust its customers place in its application services.
According to the bank, employees who worked in Brazil can apply for vacancies at the company’s European offices. (Contxto)
Barte raised an investment round for BRL $20 million
After the first months of operation, Barte, a B2B payments fintech for small and medium-sized businesses (SMEs), reached BRL$20 million in transactions on its platform during March.
In a recent announcement, the fintech revealed the successful fundraising of BRL$20 million through debentures.
This event marks the third funding in the last 12 months, following capital rounds of BRL$16 million in March and BRL$6.5 million in November 2021.
From that point, the focus shifted towards developing acquisition channels, the payment product, and the credit segment. Now, the third pillar of this strategy is taking shape. (Contxto)
iugu, Brazilian fintech, secures USD $14 million investment for its expansion
iugu, a financial services platform specializing in cash management and payment automation, has announced a significant investment of USD $14 million in a new senior quota series in its FIDC (Investment Fund in Credit Rights), with Bradesco BBI leading the transaction.
Since its foundation in 2012, iugu has seen significant growth in its operations and projects, an 80% increase in 2023 compared to 2022, establishing itself as a cash management and payment automation solutions leader.
Last year, the fintech raised R $1 million in the first series of the iugu FIDC with the support of Bradesco BBI, allowing it to diversify its products and services. The first series exceeded the R $1000 million mark in transaction volume.
Additionally, iugu is exploring new investments and growth strategies. (Contxto)
Liquido is licensed to operate as a payment institution in Brazil
Liquido has just obtained a license from the Central Bank to use as a payment entity in Brazil.
Liquido has been operating in Brazil for under two years and conducts transactions equivalent to USD $1 billion annually.
With the new license, it can serve its customers directly, but this is a long-term plan.
Outside the system of significant banks, the platform is already one of the leading transaction platforms for Pix. (Contxto)
The company has a platform from which you can also manage payments at Terpel gas stations, car wash services, payments at self-service stores, towing assistance and, among others, technical-mechanical inspections, which they call an ecosystem.
This capital injection has been led by the largest Latin American venture capital firm, Kaszek Ventures, with the participation of angel investors who followed up on their initial investment, mainly the founders Felipe Samper, Alejandro Uribe, Felipe Ochoa and Jorge Camacho.
GoPass plans to announce additional functionality in its ecosystem in the coming months. (LatamFintech)
Beetransfer announces partnership with Bitso
Beetransfer, the Fintech Startup with more than 1.3 Million dollars in sales in its first year, made an agreement with Bitso. This cryptocurrency platform will accelerate its growth in the region.
This strategic partnership will allow Beetransfer users to access an additional option to receive payments immediately, providing greater flexibility in managing their international revenues.
Beetransfer becomes the stripe of Latin American talent, helping thousands of freelancers, nomads, and businesses to receive payments from anywhere in the world in seconds. (TyN Magazine)
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