This week, layoffs continues, this time at Argentine fintech Callao. Additionally, Credicorp launches a new digital brand and a Mexican fintech gets a US$100 million credit line.
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#Strategic Plays
Credicorp Group launches digital card
Peru’s Credicorp debuted a new digital financial brand called iO, which offers a credit card in partnership with Visa. Patricia Conterno, CEO of the new brand, led development of the project. In true fintech style, the company opened a waiting list on Thursday for anyone who want to apply for the card.
Argentina’s Callao lays off 35% of its workers
Callao, an Argentine fintech that develops tech infrastructure, fired at least 37 employees, representing approximately 35% of its workforce. The affected workers said in a statement the layoffs are the result of a change in the fintech’s business strategy.
Migrante buys Colombian fintech and changes name
Chilean fintech Migrante signed an agreement to acquire Crediorbe, a fintech that offers motorcycle loans in Colombia. The company, which provides financing to immigrants in Chile, also changed its name to Galgo.
Belvo acquires Brazil’s Skilopay
Spanish open finance platform Belvo acquired Skilopay, a Brazilian firm offering payment services via Pix. The purchase increases Belvo’s product portfolio and allows it provide services regulated by the central bank. Belvo continues to pursue a payment strategy, having obtained authorization to operate as an eWallet in Mexico in June 2022.
Nu expands its customer base
Nubank increased its customer base by approximately 33% in the first quarter, compared to the same period in 2022, to reach 79.1 million users across the three countries where it operates: Brazil, Mexico and Colombia.
Also…
- In Mexico, Bonoxs began operations, offering gift cards for gamers that don’t have access to credit cards.
- In Chile, Banco Security will help fintech Copec expand the services offered by Copec Pay, a digital account for making local transfers
- In Colombia, EPAM opened offices in the country to offer technology for developing functionalities in the areas of gaming, artificial intelligence and fintech.
- Payment solution fintechs IXOPAY and EBANX joined forces to make it easier for merchants to enter LatAm. The alliance will allow IXOPAY clients to receive funds via local payment methods.
#Financial results
Paytech Fiserv posts positive Q1 results
Fiserv, a global provider of payment solutions and financial services, reported a 10% increase in first-quarter revenue to US$4.28 billion, exceeding market expectations. The US company said its three international regions (including Latin America) posted organic growth of 30%.
#Investments
Fairplay secures US$100M credit line
Mexican fintech Fairplay lined up a credit line of US$100 million from Community Investment Management to spur financing for local e-commerce companies. It raised an additional US$8.5 million in capital from Dila Capital, Elevar Equity, Speedinvest, Nazca and Kayyak Ventures.
Clara raises US$60M to boost its operations
Mexican unicorn Clara raised US$60 million in a round led by GGV Capital. The firm intends to expand its workforce and product offering and consolidate itself in the region, specifically in Brazil and Colombia. The fintech told iupana in October it is plans to raise capital via an IPO.
- Brazilian insurtech Justos raised US$5.5 million. Dhaval Chadha, the startup’s co-founder, told Brazil Journal the new capital will serve as a bridge and that its official valuation will be defined by its the next financing.
#People
Fintech Association of Mexico elects president
The Mexican Fintech Association, which has more than 180 affiliated companies, picked Felipe Vallejo as its new president. The executive is corporate affairs director for crypto platform Bitso.
#iupanaExclusive
Walmart de México plans to shore up its fintech division by leveraging its vast network of stores. What are its next steps? After operating a closed payment circuit for the last year few years, the company is ready to expand the product offering of its Cashi eWallet and compete in the market for digital accounts thanks to a recent acquisition.
- The retailer wants to shake up the local fintech market, taking advantage of its extensive physical presence, brand name and experience.
- It plans to tap the potential of its 5 million daily shoppers to make Cashi a new force in the market.
- Cashi currently offers loans in partnership with third parties but doesn’t rule out offering credit directly.
Read more about Walmart’s fintech strategy for Mexico in our weekly report.