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Finnovating published the first report on investment in FinTech and InsurTech in Latin America, where the ecosystem raised a total of US$2.66 B during 2019.
FinTechs in Latin America raised US$2.66 B in 2019
Latin American FinTech raised a total of US$2.66 B (US$1.92 B in equity and US$0.74 B in debt) in 94 deals in 2019. Of the 94 rounds, 14 were undisclosed. FinTech’s investment in LA is highly concentrated, Brazil with $1.343M (69’9%) and Mexico with $396M (20’6%) accounting for over 90% by 2019. Behind them, Argentina raised $152M (7’9%), Colombia $21M (1’1%), Chile $6’5M (0’3%) and Peru $1’1M (0’1%).
Nine funds participated in more than one round during 2019, one of them participated in 6 (Y Combinator), and 3 participated in 5 (Kaszek, QED Investors and SoftBank). About 10% of the funds that have participated in these rounds belong to traditional financial entities: Santander Innoventures, Banco Votorantim and Goldman Sachs invested in 2. More than 50% of the rounds have an investment ticket of less than US$10 million. July was the month with the highest investment volume, although September was the month with the highest number of rounds (12).
According to Rodrigo García de la Cruz, CEO of Finnovating, “the potential of the Latin American FinTech market is enormous, as these figures show, and large corporations are already realizing that. In fact, in 2019 we gathered more than 500 CEOs and startup founders in our region in our private meetings called Unconferences. In addition to our soft-landing programs to explore the opportunities of Spain and Europe in which we gather in Madrid more than a dozen startups from Latin America to meet with investors, large entities and supervisors”.
Latam FinTech ecosystem
As for the rounds, some very important ones are observed, such as Nubank, which exceeds $400 million. Followed by Banco Inter, of $341 million, and Creditas, of $231 million, all three are FinTech from Brazil. They are followed by Argentinian Ualá, with 150 million dollars, and Mexican Clip, with 100 million dollars. A remarkable fact is that the 10 main rounds represent more than 76% of the capital raised in the year, in the 82 rounds of capital of 2019, and include 5 Brazilian companies, 4 Mexican and one Argentinian. Regarding the verticals, 90% of the total investment was concentrated in three verticals: Neo & Challenger Banks, Lending and Payments.
Latam FinTech ecosystem is wide and rich, and among it, we highlight 8 because their potential or level of maturity: BanWire, Billpocket, Efisys, Enbanca, Finsocial, Rapicredit, Ripio y Vu Security. Also, we publish maps of each country, please fin them in the following links:
This report only includes investments in FinTech and InsurTech companies, while investments in PropTech companies such as Quinto Andar (US$ 250 M) or Loft (US$ 70M) are not included.