The Digital Revolution in Latin America: Fintech and Brazil Spearheading the Transformation
The retail industry in Brazil is experiencing tremendous growth, while startups in Latin America (LaTam) are also thriving, particularly in Brazil where the majority of unicorns in the region are.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American startup scene.
Hiring Boom: Brazil’s Retail Industry Boosts Job Offers by 72% in the First Quarter of 2023
The Brazilian retail industry saw a significant increase in job offers during the first quarter of 2023, with a 72% uptick compared to the previous quarter. Raia Drogasil emerged as the top company, offering the most jobs.
The report also highlights a notable increase in job offers in the fields of biological, physical, and social sciences, marking a 7508% increase from the previous quarter. Administrative and office support roles came in second, while jobs in business and financial operations declined by 10%.
Arezzo Industria e Comercio experienced the highest growth in hiring activity. This growth suggests a demand for technical and scientific expertise, indicating the industry's adaptation to new market needs.
Vía Contxto
The Technological Boom of Latin America: Fintech and Brazil Lead the Change
The number of startups in Latin America has grown significantly, reaching a total of 33,489 companies, with Brazil leading the way with over 13,000 active startups.
Fintech is the most important sector in the region, followed by Retailtech and Martech. The predominant business model is Software as a Service (SaaS). Brazil is also home to the majority of unicorn startups in Latin America.
Startups in the region have received over $37 billion in investment since 2019. However, there has been a slowdown in the venture capital market in the past year. The tech market in Latin America has experienced substantial growth, driven by the entry of international investors.
Vía Contxto
Quick News
International organizations Endeavor and the Chilean-American Chamber of Commerce, along with Vantaz Group, have launched the "Hazte local en Miami" initiative.
The program. The program aims to provide training and advice to over 30 startups and scale-ups looking to enter the US market. The initiative covers various aspects of business expansion, including legal and tax matters, marketing, and finance.
Highlights. It also includes an exploratory tour for entrepreneurs to understand the dynamics of the international market and explore business opportunities. (Contxto)
Fintech Summit Latam: Reimagining Financial Services for the Future
The Fintech Summit Latam recently took place in Mexico City, bringing together fintech leaders from across Latin America to discuss the future of financial services.
Topics. Topics like the role of IA in driving efficiency and innovation in fintech, digital identity, financial inclusion, blockchain, and virtual currencies were discussed. (Contxto)
Nubank to Launch Personal Loans in Mexico
Nubank is expanding its financial services portfolio in Mexico by launching personal loans, aiming to capitalize on the country's potential for growth in the fintech sector.
The opportunity. The move aims to strengthen its financial services portfolio in the country, which is the second-largest economy in the region.
Value proposition. Customers will be able to obtain personal loans in less than five minutes through Nubank's digital platform.
The growth is in the mexican market. Nubank sees Mexico as a market with significant growth potential and plans to launch more products in the country (Contxto)
Meet the 10 Startups Selected by Nestlé México and The Yield Lab LATAM to Drive Sustainability
Nestlé México and The Yield Lab LATAM have selected 10 startups for their Regeneración by All In initiative to address environmental challenges in areas such as CO2 emissions reduction and water use improvement.
Funding. The startups, selected from 119 submissions, will receive funding for pilot tests in the Mexican market and have the opportunity for long-term collaboration with Nestlé.
Solutions. The solutions range from data analysis and AI to sustainable agricultural practices. The initiative aims to transform the industry's value chain and support local entrepreneurs. (Contxto)
Wited and Betterfly Join Forces to Boost Education Across Latin America
Chilean edtech firm Wited has partnered with insurtech unicorn Betterfly to provide academic resources and support for children and adolescents across Latin American countries.
Value proposition. Betterfly users can now access Wited's platform, which offers features like online chats with educators and subject-specific content and exercises.
Highlights. The partnership highlights the integration of edtech and insurtech solutions in the region and the potential for Latin America to play a significant role in digital transformation. (Contxto)
Despegar and Bitso agree on alliance for cryptocurrency exchange program in Argentina
Despegar, the Latin American travel company, has expanded its partnership with Bitso, a crypto-driven financial services firm, to allow travelers in Argentina to exchange their reward points for cryptocurrencies.
The partnership and why it’s important. This partnership makes Pasaporte Despegar the first rewards program in Argentina to offer this feature, which was already available in Mexico since April. Bitso, which has over 1 million users in Argentina, provides a platform for buying, selling, and storing over 50 cryptocurrencies. (DF SUD)
Koggi, a Colombian startup, made it to the finalists of the IOI Summit awards
Colombian proptech startup Koggi has been selected as a finalist for the IOI Summit awards.
Koggi’s business model. The company's platform connects builders, buyers, and financial institutions to facilitate and improve the experience of applying for a housing loan.
Value proposition. Koggi aims to be a reference and support the market for new properties, allowing more Colombians to own their own homes. (La República)
From CRM to ERP: The digital transformation of Brazil’s Sebrae
Brazilian micro and small business support service, Sebrae, is advancing its digital agenda by updating its tech park, training professionals, and modernizing its systems.
Value proposition. The service has implemented a new customer relationship management platform called FOCO, built using Salesforce, with the help of integrator Globant. The new CRM is gradually being activated in all 27 Sebrae units across Brazil.
Partnership with AWS. Additionally, Sebrae has partnered with AWS to provide free training for professionals in the country's startup ecosystem, with the goal of impacting 10,000 startups by the end of 2023. (bnamericas)
The first platform for medicinal cannabis with holistic medical care arrives in Argentina
DrGea.com is a startup founded by Argentinians that aims to revolutionize access to natural treatments by providing a platform for the acquisition of safe medicinal cannabis products.
Value proposition. The platform offers specialized medical advice and educational content on the benefits and proper use of medicinal cannabis.
The growth of cannabis in Argentina. With the legalization of medicinal cannabis in Argentina in 2017, the use of such products is growing. (Exclusiva)
Chilean multinational Kibernum is expanding its operations to Peru to address the growing demand for technology professionals in the country.
Value proposition. Kibernum specializes in finding and training talent in the field of IT and aims to hire at least 40 professionals by the end of 2023.
The lack of IT’s professional and the opportunity. The company has identified a global shortage of over 85 million technology workers by 2030. Kibernum also plans to expand its presence in the United States, with offices in Silicon Valley and the East Coast, and has a goal of injecting $50 million into the US market over the next five years. (DF SUD)
Finds
tools, websites, and accessories
Trello. Trello is a web-based project management and collaboration tool. It provides a visual platform for organizing and managing tasks and projects using boards, lists, and cards.
ProofHub. ProofHub is a cloud-based project management and collaboration software that aims to simplify and streamline communication and workflow within teams.
Kissflow. Kissflow is a powerful workflow automation platform that helps businesses to streamline their processes and improve their efficiency.
Food for Thought
All that fintech investment had a real impact on banking penetration in Latin America
Latin American startups have had a significant impact on financial access in the region. Despite facing a decline in venture capital funding, particularly in the fintech sector, these startups have contributed to the rise in bank account penetration in Latin America.
While bank account penetration in India and the US remained relatively stable after 2017, it continued to rise in Latin America to 74%. This growth can be attributed to the funding received by fintech startups in the region. (TechCrunch)
VCs Who Wait Too Long For A Market Rebound Risk Losing Out On The Best Deals
The ongoing decline in venture funding has left many startups scrambling to secure their next round of funding. However, venture funds are hesitant to invest until there is a clear indication of a market rebound.
The author believes that the best investment opportunities will arise just before the market consensus shifts positively. But with many startups running out of time and potentially shutting down, investors are faced with the difficult task of making investment decisions amidst uncertainty. (Crunchbase News)
Tips for building a performance culture at your startup
In this article, the author shares their key takeaways from a podcast episode featuring Frank Slootman, the CEO of Snowflake.
Slootman provides insights on building high-performing companies and offers practical advice for leaders. He emphasizes the importance of assessing team members based on their performance rather than behavior and encourages leaders to establish and drive the company's culture.
Slootman also discusses the significance of prioritization and the negative impact of bureaucracy in larger companies. He advocates for creating a performance culture by setting clear goals and rewarding exceptional performers. (LatamList)
Worthy Recommendations
My Seven Black Fathers: A Young Activist’s Memoir of Race, Family, and the Mentors Who Made Him Whole, recommended by Ginni Rometty, Former chair and CEO, IBM; cochair, OneTen
My Seven Black Fathers by Will Jawando. “It doesn’t matter what circumstance you’re born into; this book speaks to the importance of role models in your life–and particularly male role models for a young black man. It also cements why I believe the ‘skills first’ movement creates opportunities in a world where so many have the aptitude but not the access to succeed.”, Ginni says.
Jobs
Full Stack Software Engineer at Atrato Pago (Mexico, remote)
Sr. Software Engineer at BetterCloud (Mexico City, hybrid)
Product Manager at Super.com (Toronto, Canada, remote)
Corporate accountant at Riot Games (Mexico City, not specified)
Business Development - Senior Vice President at Infomineo (Mexico City, not specified)
Deals
These startups and companies received capital this week:
FACIA | Cybersecurity | Not specified. FACIA, a Bolivian security app, has raised USD$1 million to expand its reach and develop solutions that enhance security through cooperation and technology. The app uses AI algorithms to analyze real-time security patterns and encourages community cooperation to prevent incidents.
Nuu | Foodtech | Venture. Brazilian foodtech startup Nuu has raised USD$4 million in funding to expand the distribution of its carbon-neutral cassava-based food products. The funding round was led by EcoEnterprise Fund and included contributions from CamelFarm Capital, Newlin, MadFish, Bioma Food Hub, and angel investors.
Asaak/FlexClub | Fintech | Acquisition. Ugandan fintech Asaak expands into the Latin American market with the acquisition of car subscription service startup FlexClub Mexico, aiming to develop new financial solutions for the region.
Correcto | SaaS/AI | Venture. Spanish startup Correcto has raised €6.5 million in a funding round led by Octopus Ventures, Carya Venture Partner, and River Park Venture. The investment will be used to further develop the company's SaaS platform, which offers real-time linguistic corrections in Spanish through AI and machine learning.
Ukma | Cultech | Seed. Mexican cultech startup Ukma has closed a seed investment round led by CANVAS Partners, allowing the company to expand its presence in Mexico and internationally. Ukma specializes in the design, manufacturing, and marketing of sculptures, with a focus on creating socially conscious and sustainable pieces. The investment amount was not disclosed.
Biwiser | Analytics | Equity crowdfunding. Chilean startup Biwiser has successfully raised USD$161,540 in a funding round. Biwiser offers analytical platforms for businesses and has a portfolio of 150 clients.
Serasa/Experian | Fintech | Acquisition. Serasa Experian, a credit bureau in Brazil, has acquired fintech company FlexPag to diversify its operations and expand credit access. The financial details of the transaction were not disclosed.
Syscap | Fintech | Seed. Mexican fintech startup Syscap has raised USD$2.3 million in seed funding to enhance its platform for non-banking lenders in Mexico. Syscap's platform streamlines credit management for financial institutions, providing a centralized solution for all stakeholders involved in private credit transactions.
Vecindapp | SaaS/Real Estate | Seed. Vecindapp develops advanced technology and digital transformation solutions with integrated features for the property managment. The Colombian startup raised USD$250,000 in a seed round.
Cobre | Fintech | Series A. Cobre is the treasury platform that accelerates money movement for companies in LatAm. The Colombian startup raised USD13 million in a Series A from Kaszek and QED Investors.