#TopStory 🔝

The fintech winter cuts both ways

The slowdown in fintech investment is not just a result of caution on the part of VCs—it’s also because fewer startups are seeking fresh capital, according to investors.

A wave of pessimism has cascaded down from equity markets to venture capital, impacting fintech startup valuations. Some recent rounds have produced flat—or even lower—valuations than prior rounds, while other companies are seeking bridge facilities through SAFEs and convertible notes until they can close their next rounds on better terms.

 “We’re seeing fewer entrepreneurs pitching and that’s a shame,” Bianca Sassoon, managing partner at 17Sigma—a new VC fund founded by Ualá’s Pierpaolo Barbieri—said at a virtual panel hosted by iupana on Tuesday.

It’s a similar story at ALLVP, said Antonia Rojas, who’s a partner at the LatAm fund with US$200m of assets under management. Shareholders are also cautioning founders against raising new capital in the current environment, she said.

Still, it’s not all doom and gloom, in the eyes of Jay Reinemann,
general partner at Silicon Valley-based Propel VC, which manages US$400m of VC investments for BBVA.

“I’m more excited about LatAm than I am the US, especially in fintech, because I think there’s so much that’s not done yet,” he said. The sector has matured, and experienced fintech managers are helping power local businesses forward.

ALLVP’s Rojas shared a similar sentiment. “2022 is a year in which I hope we will have more capital available than we had prior to 2019 but with the right fundamentals. We have more talent. So actually, I’m very optimistic.”

#Strategic moves 📊

Chile: Banks and fintechs agree on open finance rules

Chile’s banking and fintech industry groups set aside their differences this week and helped the country move a step closer to open finance.

The banking and fintech associations established standards for security, accountability
and mechanisms for reading customer data via web scraping. The framework agreement is voluntary but was sent to the country’s regulators for consideration as part of their discussions on implementing open finance.

• Also in Chile, Santander introduced an account for teenagers. Branded Santander Teens, the account allows adolescents between 14 and 17 years of age send and manage their money and provides them a debit card in their parents’ name as well as their own.

In Brazil, C6 delivers loans via home equity…

The Brazilian neobank C6 is lending up to 60% of a property’s value via home equity loans. This method allows the borrower to obtain lower interest rates and to repayment periods of up to 20 years. The product is initially available to a group of 200,000 clients.

… and PagBank PagSeguro delivers investment-linked credit

PagBank PagSeguro is offering a credit card that has a credit line linked to the user’s investments in Certificates of Bank Deposit (CDBs), which can be purchased within the application.

Also in Brazil:

• Nubank introduced a silver corporate card to recognize the track record
  of SMEs that use its banking products. It retains the functionality of the previous purple corporate plastic and is designed to be used as a calling card.
• Broad, the neobank founded by Marcos Pileggi and Juliano Alves, initiated operations with a multi-currency digital wallet aimed at Brazilians traveling overseas. Broad also provides a physical and virtual Mastercard debit card.

In Mexico, Belvo obtains
fintech license… 

Belvo, an open finance technology provider, has been granted an operating license, making it the 34th company to be recognized as a fintech under the country’s legislation. Belvo received a license to function as an electronic payments company (IFPE).

…and Konfío launches B2B solutions

Mexican unicorn Konfío introduced a platform that allows SMEs to apply for financing, make collections and payments, and manage their business. The launch was accompanied by a new corporate credit card and the presentation of new sales terminals.

#Investments  📈

Mexico’s UnDosTres raises US$30m

UnDosTres raised US$30 million in a series B round led by IDC Ventures. The platform allows users to pay for a range of services such as water, electricity and mobile phones. The financing will be used to develop new products.

• Retrypay, a payments technology provider in Mexico, raised US$1.5m with participation from Mucker Capital.

• Autocred, a Chilean platform for buying and selling cars and financing vehicle purchases, received US$1m from Forum.

#People 🙋‍♂️🙋

Ualá hires former Scotia executive to head Mexico office

Luis Madrazo was named CEO of Ualá in Mexico to replace Ricardo Olmos. Madrazo previously served as corporate director of financial planning at Scotiabank and held senior positions at the country’s finance ministry.

#iupanaExclusive 🔥

Nubank Mexico has a clear strategy to ride out the tumult in financial markets. We spoke to Emilio Gonzalez, the neobank’s country head, who laid its growth plans.

• The crisis comes at a time when Nubank has ample capital to invest. 
• The digital lender has developed a risk engine that made it the biggest issuer of credit cards in Mexico in the first quarter of this year, with 700,000 cards activated.
• In addition, entering the market with credit products gives added sustainability to the
  business.

Learn more about Nubank’s plans in Mexico in this week’s feature story.