WhatsApp Business is making a killing in Mexico and Brazil
A Brazilian phone spyware was hacked and victims’ devices ‘deleted’ from server. The venture capital landscape is changing and paying more attention to financials. Yana: a Mental Health app with AI.
Welcome to our weekly newsletter covering the latest news and trends in the Latin American startup scene.
Brazil and Mexico Lead the Economic Impact of WhatsApp Business, Generating Billions in Revenue
WhatsApp Business has become highly popular in Latin American countries like Brazil and Mexico, with usage rates exceeding 90% in 2022.
Brazil leads in revenue generation through the WhatsApp Business app, with a significant figure of USD$5.28 billion in December 2022.
WhatsApp Business allows companies to create a business profile, use tools like auto-replies and labels, and showcase their products in a catalog within the app. It provides a low-cost solution for small businesses to interact with customers and is particularly valuable in markets with high app penetration.
Vía Contxto
How Weather Startups Are Holding Up In A Dryer Funding Climate
The weather forecasting industry is experiencing significant growth, with revenue from weather apps projected to increase by over 11% annually from 2022 to 2027.
Startups in the weather space have also seen substantial investment, with over $1 billion raised collectively by 27 weather-focused companies in the past two-and-a-half years.
Despite the growing damage caused by weather-related catastrophes, investments in weather startups are relatively small compared to the potential market size.
Vía Crunchbase News
Quick News
Yana: Virtual lifeguard for mental health in Latin America
Yana is a mental health application founded in 2016 by Andrea Campos. It offers accessible support and resources for mental health in Latin America.
Value proposition. Yana aims to democratize mental health care in Latin America and reduce the stigma surrounding mental health issues.
Highlights. The startuphas achieved significant growth with over seven million users and has received over USD$1.8 million in investments to expand its reach and impact. (Contxto)
Banchile and Poliglota Team Up to Offer Free Course on Learning Investments in English
Banchile Inversiones, a financial company in Chile, has partnered with language-learning startup Poliglota to improve financial literacy and language skills in the country.
Value proposition. The collaboration allows individuals over 18 to access a free online course on investments in English, as well as receive an English proficiency certification.
Edtech in LATAM. This collaboration reflects the growing importance of Edtech in the education sector, with global investment in Edtech rising significantly and expected to continue growing in the coming years. (Contxto)
YAPP and Seguros SURA Transform Access to Medications in Chile
Chilean startup YAPP has partnered with insurance company Seguros SURA to offer direct and online reimbursements for medication purchases from independent pharmacies.
The opportunity. Independent pharmacies make up 73% of the pharmaceutical market in Chile, expanding options for Seguros SURA's policyholders.
The healthcare industry in LATAM. The agreement aligns with the growing healthcare market in Latin America, with health technology companies in the region raising 4700% more capital annually from 2015 to 2021. (Contxto)
Here are the 10 Women-Led Tech Startups AT&T Mexico and Endeavor Will Accelerate
AT&T Mexico and Endeavor have launched a program called eNovadoras 2023 to support and accelerate 10 women-led tech startups in Mexico, aiming to promote inclusion and digital solutions that benefit society.
Women in startups. Only 37% of startups in Mexico are led by women, dropping to 25% in the tech sector.
The projects. The selected projects cover a diverse range of sectors, including talent selection, tax automation, livestock technology, food vendor expansion, fintech, nanotechnology, financial education, and climate-focused business platforms. (Contxto)
Google and Davivienda Join Forces to Launch Digital Wallet in Colombia
Colombian bank Davivienda has partnered with Google to offer its customers access to Google's Digital Wallet for secure and contactless transactions.
Value proposition. Davivienda customers in Colombia now have access to Google's Digital Wallet for secure and contactless transactions, enhancing the country's digitization efforts. The service provides various security measures, including unique card numbers and dynamic security codes. Users can also adjust privacy settings and make changes at any time. (Contxto)
Adoption of Bitcoin: Argentina is surpassing El Salvador
A research by Ark Invest shows that Bitcoin adoption in Argentina is increasing due to high inflation and the potential election of pro-cryptocurrency candidate Javier Milei.
Highlights. Despite being legal tender, Salvadorans still prefer the US dollar and are wary of Bitcoin's volatility.
The case of Argentina. In Argentina, the rapid adoption of Bitcoin is driven by the country's economic problem of inflation, with estimates of 150% inflation in 2023. (BitFinanzas)
A Brazilian phone spyware was hacked and victims’ devices ‘deleted’ from server
WebDetetive, a Portuguese-language spyware, has been hacked, compromising over 76,000 Android phones in South America and exposing customer data.
Highlights. The hackers were able to access the spyware's servers and user databases, downloading every customer's email address.
What is WebDetetive. WebDetetive is a phone monitoring app that uploads a person's phone data, including messages, call logs, and location, to its servers without their consent. The spyware is linked to another phone spying app called OwnSpy. (TechCrunch)
Circle Introduces Its Stablecoin USDC on Mercado Pago in Chile
Mercado Pago, the leading fintech in Latin America and a subsidiary of Mercado Libre, is now offering support for USDC, a stablecoin tied to the value of the U.S. dollar.
Value proposition. This move highlights the increasing importance of cryptocurrencies and the U.S. dollar in Chile. Mercado Pago aims to provide its two million users with an alternative aligned with the dollar's value.
Crypto in LATAM. Cryptocurrencies are gaining momentum in Latin America, where there is a higher inclination to buy or invest in digital assets due to the perception that they offer protection against fiat currency devaluation. (Contxto)
Intel and SONDA, a Chilean multinational, have announced a collaboration agreement that spans the entire American continent.
The agreement. The partnership aims to implement technologies for digital transformation in various sectors, leveraging Intel's expertise and infrastructure along with SONDA's specialization in IT solutions integration.
Digital transformation market in LATAM. The market for digital transformation in Latin America is projected to reach USD$207.87 billion by 2032, driven by factors such as cloud adoption and demand for AI and automation. (Contxto)
Latin America based Startups Are Laying Off Workers, LatAm Now Expecting More IPOs, Report Claims
Startups in Latin America are facing layoffs and reduced VC funding, leading to uncertainty in the region's tech ecosystem.
VC Funding. VC funding in the region dropped by 65% in Q2 2023 compared to the previous year.
Fintech is driving growth. Fintech firms, particularly in Brazil and Chile, are experiencing growth, aided by initiatives like the Central Bank of Brazil's PIX platform. (Crowdfund Insider)
Finds
tools, websites, and accessories
Duet AI (Gmail). Gmail's AI companion, Duet AI, will help users draft and customize emails, offering personalized suggestions based on context and allowing users to adjust the tone and length of their messages.
Notion. Notion is a widely used app that allows users to organize their notes in a unique way, resembling a website structure. It offers the ability to create interconnected pages with branching paths, as well as advanced features like creating tables and charts.
Passpack. Passpack is an exceptional app for online password management and security. It offers top-notch security features, such as a packing code and a 2-factor authentication system.
Food for Thought
How founders raised money so far in 2023
Investors are increasingly interested in the "why now" factor when considering investments. Pitch decks are becoming shorter, with the average successful deck now having 16 slides.
Investors are paying more attention to financials, spending 60% more time on this section compared to a year ago.
There is also a growing weariness towards AI, with investors seeking real, measurable advantages rather than just the latest hype. (TechCrunch)Network Effects: The Evolution of Online Communities
The internet has evolved into a complex network of information flows and transactions, enabling the growth of communities and networks that drive successful tech companies.
The article identifies five categories that are ripe for innovation in the community and network space: content, creators, companies, collaborators, and commerce. It specifically focuses on the role of content in building networks and mentions the success of AI-generated content platform Midjourney. (Digital Native)
This article discusses the importance of understanding unit economics in the context of cloud companies, particularly in the SaaS industry.
The Customer Acquisition Cost (CAC) Payback Period and the Burn Multiple are important metrics that reflect the financial health and efficiency of a SaaS company.
The author emphasizes the significance of good unit economics for long-term profitability and highlights the importance of metrics such as lifetime value of a customer (LTV) and customer acquisition cost (CAC) in understanding unit economics. (OnlyCFO's Software World)
Worthy Recommendations
My Life in Full: Work, Family, and Our Future, recommended by Marc Rossen, JCPenney’s CEO.
My Life in Full: Work, Family, and Our Future by Indra Nooyi. “I love learning from great leaders, and this book adds so much about family and culture, too”, Marc says.
Jobs
Venture Leader at PepsiCo (Mexico City, hybrid)
Sr. Software Engineer at BetterCloud (Mexico City, hybrid)
Full Stack Engineer at Acxiom (Mexico City, hybrid)
Head of Product at Tala (Mexico City, remote)
Revenue Growth Management Business Partner at Nuvemshop (São Paulo, Brazil, remote)
Deals
These startups and companies received capital this week:
Prestamype | Fintech | Pre-Series A. Peruvian fintech Prestamype has raised USD$5 million in funding to address the financing challenges faced by underserved micro and small enterprises in Peru.
Bebook | Hospitality | Venture. Brazilian hospitality startup Bebook has secured USD$300K investment to expand its customer base and enhance its product, with future plans to integrate AI. Bebook's SaaS platform helps hotels optimize their revenue by analyzing data to develop an optimal guest rate strategy.
Cumbuca | Fintech | Seed. Brazilian fintech Cumbuca raised USD$3 million in a funding round led by Lightspeed Venture Partners to develop payment transactions and introduce a unique debit card in Brazil.
BrainLogic AI | AI | Seed. BrainLogic AI, a tech company based in Uruguay, has raised USD$5 million in funding to expand its operations and business reach for its WhatsApp AI assistant, Zapia, designed for Latin America.
BTG Pactual/Magnetis Investimentos | Banks| M&A. Brazilian bank BTG Pactual has acquired Magnetis Investimentos, a robo-advisor platform, to expand its customer base. The amount of the acquisiton was not disclosed.
Talana | SaaS | Venture. Chilean startup Talana secures an USD$8 million investment to expand into Mexico and Peru and solidify its position as a regional leader in human resources software.
Leadsales | SaaS | Seed. Mexican tech startup Leadsales has raised USD$3.7 million in funding to expand its unique CRM platform for mobile commerce, focusing on WhatsApp and other social media platforms in Latin America.
Praso | Ecommerce | Series A. Brazilian company Praso has raised USD$9.3 million in Series A funding and acquired the intellectual property of Floki, an AI-powered company that automates purchases for small bars and restaurants.
Devolut | Ecommerce | Pre Seed. Devolut, a startup in Latin America, has raised US$600,000 in a pre-seed funding round to streamline the returns process for online sellers.
Vendah | Ecommerce | Seed. Brazilian startup Vendah raises USD$2.4 million in a seed round led by Y Combinator, with plans to achieve breakeven this year and expand operations in southeast Brazil.
Frota 162 | SaaS | Pre Seed. Frota 162, a Brazilian fleet management platform that manages infractions, fines, drivers, and vehicle debts, has received a R$3 million investment, which will support the brand's growth and improve customer experience. The investment was made by Ace Ventures, with participation from the Fundo Soberano do Espírito Santo and Venture Hub.