Fintech Investment Latin America 2019

Thiago Paiva
Thiago PaivaFintech entrepreneur, investor, and columnist at Liquia Digital Assets
Thiago Paiva
FINTECHMARKETINLATINAMERICA2019:
Investmentanddeals
By Thiago Paiva
Thiago Paiva
1. Intro
2. The Author
3. Fintech Ecosystem
4. Investments
○ Total Investments in the Region
○ Investments per Country
○ Investments per Month
○ Investments per Industry Segment
○ Main Investments Rounds
○ Most Active Investors in Fintech
○ Debt Financing Deals
5. Merger & Acquisitions
6. Final Thoughts
7. Resources
○ Fintech Radars
Index
Thiago Paiva
Intro
First of all, thanks for reading this material! My name is Thiago Paiva and I'm a fintech entrepreneur, investor,
and columnist. I've been working with startups and innovation for the past 9 years in Brazil, Mexico, US, and
Singapore.
I have invested and accelerated more than 60 startups from which more than 20 were fintech startups from 8
different countries while working at Wayra in Brazil and Startupbootcamp Fintech in Mexico.
Since I started to invest in fintechs, in 2013, the market radically changed. In less than 6 years, we saw the birth
of the first fintech unicorns in the region, as well as IPOs from Stone (NASDAQ) and Pagseguro (NYSE) in the US.
My goal with this report is to shed some light to the fintech ecosystem in Latin America that has been
under-appreciated for a long time despite its huge potential.
Finally, if you like this material, please, share it!
Thiago Oliveira de Paiva
Thiago Paiva
The Author I'm a fintech entrepreneur, investor, and columnist! I have been actively engaged
in the Latin American ecosystem since 2010. During this period, I have evaluated
2,600+ and invested in 60+ startups from 9 different countries while working at
Wayra Brazil and Startupbootcamp Fintech Mexico. I studied Fintech at MIT and
Business with Concentration in Finance at UCLA.
I write about fintech in Latin America in international and regional publications
and also develop reports analyzing the ecosystem.
I'm currently a Product Manager at Oyster Financial, a Neobank for SMEs in
Latin America, leading its marketplace initiative. I'm also a TechCrunch
contributor.
Thiago Paiva
FINTECH ECOSYSTEM
Thiago Paiva
The fintech ecosystem in Latin America has been growing quite strongly through the past few years, drawing
attention from reputable investors such as Andreessen Horowitz, Sequoia Capital, and SoftBank.
In Latin America, I believe we have an interesting combination that creates a perfect setup for fintechs to
thrive and prosper. Just to highlight some of the main issues:
● People in the region suffered many financial crises, making them very skeptical of banks;
● Poor financial infrastructure excludes people from accessing basic financial services such as
payments and credit, leading to a high level of informal economy ;
● Half of it's 640 million population is unbanked;
● In most countries, there is an oligopoly of financial institutions, leading to poor customer support,
abusive and hidden fees, and weak efforts to digitalize;
On the other side, Latin America has 68% of smartphone penetration with a highly connected population,
looking for solutions beyond the traditional financial systems to solve their problems.
Under these circumstances, fintechs are starting to draw more and more attention from customers and
investors.
Fintech Ecosystem in Latin America
Source: The Mobile Economy Latin America and the Caribbean 2018
Thiago Paiva
124 Updated Mar/19
394 Updated Jun/19
Number of Fintechs per Country
Source: IDB-Fintech Latin America 2018 , and Fintech Radars from Finnovista
According to IDB, Latin America has around 1166
fintechs.
Brazil (377) and Mexico (394) are leading in number
of fintechs, with Mexico having a few more but with
Brazilian data a little outdated.
The other countries in the region are way behind
with Colombia (124) and Chile (112) trying to
establish themselves as the third largest ecosystem.
377 Updated May/18
110 Updated Mar/18
112 Updated Aug/19
Thiago Paiva
Highlighted Fintechs in the Region
Thiago Paiva
Fintech Adoption
Source: https://fintechauscensus.ey.com/2019/Documents/ey-global-fintech-adoption-index-2019.pdf
Consumer Fintech Adoption Index - EY
Average
64%
Latin America is one of the regions with fastest
fintech adoption, according to EY Consumer
Adoption Index 2019.
It had 3 countries in the Top 10 (Colombia, Peru,
and Mexico) and all of the largest economies
above the average, 64%, of the 27 researched
countries.
Thiago Paiva
Most Funded Fintechs
● BR - Nubank (US$ 820M): The largest neobank outside of China with more than 20M customers, worthing US$ 10 billion;
● BR - Quinto Andar (US$ 335M): An unicorn proptech that facilitates the rent of properties by offering financial services;
● BR - Creditas (US$ 314M): A secured online loan to consumers;
● AR - Ualá (US$ 194M): Neobank for personal accounts;
● MX - Clip (US$ 160M): A card payment provider similar to Square;
● MX - Konfio (US$ 143M): An unsecured online loans to SMEs;
● BR - Neon (US$ 121M): A neobank with personal and business account;
● BR - Loft (US$ 88M): Is a proptech that facilitates the purchase and sale of properties;
● BR - GuiaBolso (US$ 66M): PFM and lending, similar to Mint;
● AR - Technisys (US$ 64M): Digital transformation;
● MX - Credijusto (US$ 53M): A secured online loans to SMEs;
● BR - WEEL (US$ 44.5M): Online factoring;
● AR - Ripio (US$ 44.4M): Bitcoin wallet and exchange;
● BR - ContaAzul (US$ 37M): SMEs financial management;
● BR - Ebanx (US$ 30M): An unicorn online payment processor;
Source: Crunchbase and startup press releases
* Only equity deals were considered
Thiago Paiva
Emerging Trends
Source: https://techcrunch.com/2019/12/05/a-look-at-latin-americas-emerging-fintech-trends/
● Financial services for the gig economy
● Rethinking insurance
● Providing basic financial services to MSMEs
● Everyone wants to be a bank (Banking-as-a-Service)
● Proptech meets fintech
Although the fintech ecosystem in the region was impulsed by startups in payment (Stone,
Pagseguro, Clip), neobank (Nubank, Ualá, Neon), and lending (Creditas, Konfio, Credijusto), we're
starting to see some other emerging trends. Find them below:
(if you want to know more, check my TechCrunch article: "A look at Latin America’s Emerging Fintech Trends")
Thiago Paiva
INVESTMENTS
Thiago Paiva
Since 2011, venture capital investment
in Latin America has boomed,
achieving more than 150% average
compound annual growth. In 2019,
according to Crunchbase data, the
region reached US$ 4.2 billion raised in
430 equity deals; a 213% increase from
the previous year.
Fintech is the leading segment in the
region with a total of US$ 2.94 B raised
(US$ 2.22 B in equity and US$ 720.2 M
in debt).
Investments in Latin America
Source: Data from LAVCA (2011-2018) and Crunchbase (2019)
Thiago Paiva
Total Investments in the Region
Latin American fintechs raised a total of US$ 2.94 B (US$ 2.22 B in equity and US$ 720.2 M in debt) in 147
deals in 2019, with 26 not disclosing the amount invested. In the Q4 alone, there were US$ 1.089 B in 22 deals.
The amounts includes the Softbank equity investment in Banco Inter (BIDI4.SA) (a listed challenger bank) of US$ 331.7 M.
Source: proprietary data from deals
Thiago Paiva
Number of Equity Investments per Country
Source: proprietary data from deals
In 2019, Brazil led the investments in
the region with 45.5% of all the deals in
the region.
Mexico secured its second spot while
Colombia is positioning itself as the
third most dynamic fintech country in
the region.
Thiago Paiva
Volume of Equity Investments per Country
Considering the volume of investments, the
Brazilian fintechs captured an impressive
72.2% of all the disclosed investments in the
region while Mexico remained in the second
position with 16.8%. Although Colombia had
more deals, Argentina was able to raise a few
large rounds, which enabled it to get the third
place.
Source: proprietary data
Thiago Paiva
Volume of Equity Investments per Month
Although the year started with a good amount of deals, the volume invested was not significant
compared to the rest of the year. Q2 and Q3 were the most important quarters of the year with most
of the activity but also concentrating 73% of all the volume invested, with July saw the most
investment, with US$ 733.9 M.
Source: proprietary data
Thiago Paiva
Equity Investment by Industry Segment
Lending (consumer and business) is still a relevant fintech segment in Latin America with a little
over 30% of all deals on a total of US$ 519 M in equity investment. Even so, Digital Banking became
the hottest segment attracting the largest share of the investors money, 54.3%, on total of US$ 1.058 B.
Another trending segment is Mortgage and Real Estate attracting US$ 269.5 M.
Source: proprietary data
Thiago Paiva
Equity Investment by Industry Segment - 4Q
2019
In the Q4, Digital Banking dominated the VCs interest, attracting 67.5% of all money invested in the quarter. We also
saw many Mortgage and Real Estate deals with small value, this is probably the reverberation of the large investments
of Loft, Flat, and QuintoAndar generating entrepreneurs and investors interest in this market.
Source: proprietary data
Thiago Paiva
US$ 96 Million
(BR - Nov 19)
US$ 150 Million
(AR - Jun 19)
Largest Deals in 2019
US$ 100 Million
(MX - May 19)
US$ 231 Million
(BR - Jun 19)
US$ 400 Million
(BR - Jul 19)
US$ 331.7 Million
Listed Company
(BR - Jul 19)
US$ 250 Million
(BR - Sep 19)
Source: proprietary data. Selected investors in the round
US$ 100 Million
(MX - Dec 19)
Thiago Paiva
TOP 10 Deals - Comparative Chart
Source: proprietary data
Last year was we saw many mega-rounds (over US$ 100 M), Nubank, QuintoAndar, Creditas, Ualá, Clip,
and Konfio all raised mega-rounds with Neon almost reaching that mark. Another mega-round was the
Softbank investment in the listed company Banco Inter.
Thiago Paiva
TOP 10 Deals - Share of Equity Investments
Source: proprietary data
Venture Capital is a power-law business where usually a few deals concentrate a large share of the total.
We can clearly see this happening in 2019 fintech deals, where the TOP 10 deals accumulated 67% of the
total volume of equity investments of the total 134 deals.
Thiago Paiva
GROWTH-STAGE
Highlighted VCs Actively Investing
Local Foreigners
BRAZIL
MEXICO
CHILE
EARLY-STAGE
ARGENTINA
Thiago Paiva
Here are the most active equity investors (with exception of accelerators) in 2019. Eight investors had 4 or
more investments in fintech; Five are regional funds and three are global funds.
Most Active Equity Investors (1 of 2)
7
7
Investors Disclosed Deals
Source: proprietary data
8
Thiago Paiva
6
Most Active Equity Investors (2 of 2)
6
6
6
4
Source: proprietary data
* Mountain Nazca participated in 2 rounds of investment in Albo in 2019
4
Thiago Paiva
Debt Financing Deals
On the debt side, although Brazil had almost half of all deals, Mexico led the debt financing in the region with
US$ 400 M, 51.9% of all amount in debt financing. Goldman Sachs is positioning it as the most relevant debt
finance investor in the region, investing a total of US$ 475 M in 2019. Although there are many investors
interested in investing in larger rounds, fintechs are having problems to raise rounds smaller than US$ 50 M.
Source: proprietary data
Thiago Paiva
Merger & Acquisitions
Thiago Paiva
Last year, there were only 13 M&A deals in fintech. Most of them
had the amount undisclosed but most likely weren't large exits.
The only major deal was the long awaited XP Investimentos IPO,
the Brazilian digital broker was listed in NASDAQ, raising US$ 1.96
billion at a US$ 14.9 billion valuation.
As the market matures and more money is invested, we should
expect to see more deals. Nubank and Creditas both mentioned that
they are looking for acquisitions that could fuel their growths.
Merger & Acquisitions
Source: proprietary data
Thiago Paiva
Fintech Exits
Acquired by Neon
Undisclosed amount (Sep 19)
Acquired by Carrefour
Undisclosed amount (Oct 19)
Acquired by Kushki Pagos
Undisclosed amount (Aug 19)
Acquired by Yonder Media Mobile
Undisclosed amount (Aug 19)
IPO - NASDAQ:XP (Dec 19)
Market Cap US$ 14.9B
Acquired by Rappi
Undisclosed amount (Feb 19)
Source: proprietary data
* Spun-off its e-wallet, now called Mibo
Thiago Paiva
Fintech Exits
Acquired by Foxbit
Undisclosed amount (Nov 19)
Acquired by Advent
51% for US$ 725M (Jan 19)
Acquired by Polygon Fintech
Undisclosed amount (May 19)
Acquired by Omni
US$ 24.4 M (May 19)
Acquired by Grin
Undisclosed amount (Jun 19)
Acquired by Capital Tech
Undisclosed amount (Aug 19)
Source: proprietary data
Thiago Paiva
Fintech Exits
Acquired by Creditas
Undisclosed amount (Aug 19)
Source: proprietary data
Thiago Paiva
FINAL THOUGHTS
Thiago Paiva
Final Thoughts
Fintech in the region is booming! Latin American fintechs attracted over US$ 2 billion on equity investment in
2019, overcoming the previous year total venture capital investment in the region. The success of Stone, Nubank
and other fintechs is attracting attention from global investors that are eager to invest in the potential of the
region.
Softbank started the year commiting a US$ 5 billion fund for the region, and started to deploy this capital quite
fast. With so many mega-rounds, some local investors are worried about high valuations and excess cash in the
market. I don't think that is the case, we're still far away from other more developed regions and even compared
regions such as Southeast Asia.
Brazil is still the leading market in the region but Mexico is quickly gaining relevance. Following them, Colombia
is trying to positioning itself as the third fintech market in the region, Rappi success case helped foster an
entrepreneurial culture and attract investors interest.
Following a global trend, the most relevant segment is digital banking with Nubank, Neon, and Ualá as the
leading players. Lending and Payments are still quite relevant, however, Mortgage & Real Estate is a relevant
emerging trend that is attracting high profile investors to the region.
Continue in the next slide
Thiago Paiva
Final Thoughts
Of course, Latin America has still a long way to go to compete with the main fintech hubs in the world. Although
moving in the right direction, banking and fintech regulation in the region is evolving at slower pace than Europe
and Asia.
The lack of technical talent such as developers and product managers is a key challenges fintechs face, leading
many of them to import talent and even a few to structure teams outside of the region.
This in-flow of foreign talent and investors is bringing a stronger startup culture as well as the state of the art
techniques. This combination is helping strengthening the local ecosystem.
The lack of more relevant exits was a low-light of 2019, with XP Investimentos IPO been the only major deal.
Despite that, 2020 has all the ingredients to have a more active M&A environment with well-funded fintechs
looking to aggressively expand regionally.
Despite of the challenges, the region is at a turning point now! We have never seen so much capital and talent
invested in creating amazing companies, trying to become the next Nubank!
Do you agree with me? I would love to hear your opinion! Send me a message at thiago.o.paiva@gmail.com
Share this Report
Thiago Paiva
RESOURCES
Thiago Paiva
Materials by the Author
● Report:
○ Banking and Fintech Market in Latin America 2019
○ Fintech Investment Report Latin America 1H2019
○ Fintech Investment Report Latin America 3Q2019
○ Fintech Market in Singapore 2018
● Iupana Monthly Column :
○ Fintech Snapshot of the Latin American Market
● TechCrunch Article:
○ The Emergence of Super Apps in Latin America
○ The Battle to Become the Mexican Nubank Just Started
○ A Look at Latin America's Emerging Fintech Trends
Thiago Paiva
Resources
● IDB Report - Financial Latin America 2018: Growth and Consolidation
● LAVCA Report - Latin America Startup Heatmap
● GSMA Intelligence Report - The Mobile Economy Latin America and the caribbean
2018
● Finnovista Fintech Radar Mexico 2019
● Finnovista Fintech Radar Brazil 2018
● Finnovista Fintech Radar Colombia 2019
● Finnovista Fintech Radar Argentina 2018
● Finnovista Fintech Radar Chile 2019
● ALLVP - Early Stage VCs Active in Latin America
● Crunchbase
● EY Fintech Adoption Index 2019
Thiago Paiva
Fintech Radar - Mexico
Source: Finnovista Fintech Radar Mexico 2019
Thiago Paiva
Fintech Radar - Brazil
Source: Finnovista Fintech Radar Brazil 2018
Thiago Paiva
Fintech Radar - Colombia
Source: Finnovista Fintech Radar Colombia 2019
Thiago Paiva
Fintech Radar - Argentina
Source: Finnovista Fintech Radar Argentina 2018
Thiago Paiva
Fintech Radar - Chile
Source: Finnovista Fintech Radar Chile 2019
Thiago Paiva
THANKSFORREADING!
Please, don't be shy and share this material!
@ThiagoPaivaFollow me at:
1 of 43

Recommended

Fintech investment latin america 2020 by
Fintech investment latin america 2020Fintech investment latin america 2020
Fintech investment latin america 2020Thiago Paiva
2.6K views41 slides
Banking and Fintech Market in Latin America 2019 by
Banking and Fintech Market in Latin America 2019Banking and Fintech Market in Latin America 2019
Banking and Fintech Market in Latin America 2019Thiago Paiva
3K views81 slides
Fintech Investment Latin America 2021 Q2 by
Fintech Investment Latin America 2021 Q2Fintech Investment Latin America 2021 Q2
Fintech Investment Latin America 2021 Q2Thiago Paiva
838 views37 slides
Fintech Investment Latin America 3Q2019 by
Fintech Investment Latin America 3Q2019Fintech Investment Latin America 3Q2019
Fintech Investment Latin America 3Q2019Thiago Paiva
1.5K views34 slides
Fintech Investment Latin America 2021 Q1 by
Fintech Investment Latin America 2021 Q1Fintech Investment Latin America 2021 Q1
Fintech Investment Latin America 2021 Q1Thiago Paiva
876 views33 slides
Fintech Investment Report - Latin America 1H2019 (Last updated: 01 Aug 2019) by
Fintech Investment Report - Latin America 1H2019 (Last updated: 01 Aug 2019)Fintech Investment Report - Latin America 1H2019 (Last updated: 01 Aug 2019)
Fintech Investment Report - Latin America 1H2019 (Last updated: 01 Aug 2019)Thiago Paiva
2.1K views31 slides

More Related Content

What's hot

State Of European FinTech: Current Trends & Prediction 2017 by
State Of European FinTech: Current Trends & Prediction 2017State Of European FinTech: Current Trends & Prediction 2017
State Of European FinTech: Current Trends & Prediction 2017Innovate Finance
7.5K views24 slides
H1 2018-pulse-of-fintech by
H1 2018-pulse-of-fintechH1 2018-pulse-of-fintech
H1 2018-pulse-of-fintechSociété Tripalio
137 views58 slides
Opening Presentation - Sthlm Fintech Week 2019- How to work together? by
Opening Presentation - Sthlm Fintech Week 2019- How to work together?Opening Presentation - Sthlm Fintech Week 2019- How to work together?
Opening Presentation - Sthlm Fintech Week 2019- How to work together?MichalGromek
240 views22 slides
Islamic FinTech Landscape 2017 by
Islamic FinTech Landscape 2017   Islamic FinTech Landscape 2017
Islamic FinTech Landscape 2017 Innovate Finance
4.5K views5 slides
Australia FinTech Report 2021 – Executive Summary by
Australia FinTech Report 2021 – Executive SummaryAustralia FinTech Report 2021 – Executive Summary
Australia FinTech Report 2021 – Executive SummaryMEDICI Inner Circle
1.3K views14 slides
2O19 Fintech Trends To Watch by
2O19 Fintech Trends To Watch 2O19 Fintech Trends To Watch
2O19 Fintech Trends To Watch Peerasak C.
4.3K views106 slides

What's hot(20)

State Of European FinTech: Current Trends & Prediction 2017 by Innovate Finance
State Of European FinTech: Current Trends & Prediction 2017State Of European FinTech: Current Trends & Prediction 2017
State Of European FinTech: Current Trends & Prediction 2017
Innovate Finance7.5K views
Opening Presentation - Sthlm Fintech Week 2019- How to work together? by MichalGromek
Opening Presentation - Sthlm Fintech Week 2019- How to work together?Opening Presentation - Sthlm Fintech Week 2019- How to work together?
Opening Presentation - Sthlm Fintech Week 2019- How to work together?
MichalGromek240 views
Islamic FinTech Landscape 2017 by Innovate Finance
Islamic FinTech Landscape 2017   Islamic FinTech Landscape 2017
Islamic FinTech Landscape 2017
Innovate Finance4.5K views
Australia FinTech Report 2021 – Executive Summary by MEDICI Inner Circle
Australia FinTech Report 2021 – Executive SummaryAustralia FinTech Report 2021 – Executive Summary
Australia FinTech Report 2021 – Executive Summary
MEDICI Inner Circle1.3K views
2O19 Fintech Trends To Watch by Peerasak C.
2O19 Fintech Trends To Watch 2O19 Fintech Trends To Watch
2O19 Fintech Trends To Watch
Peerasak C.4.3K views
2021 MENA Industry Venture Report (Sample) by RashedRawashdeh
2021 MENA Industry Venture Report (Sample)2021 MENA Industry Venture Report (Sample)
2021 MENA Industry Venture Report (Sample)
RashedRawashdeh3K views
MAGNiTT Q3 2020 - MENA Venture Investment Report | Sample by Katia Kachan
MAGNiTT Q3 2020 - MENA Venture Investment Report | SampleMAGNiTT Q3 2020 - MENA Venture Investment Report | Sample
MAGNiTT Q3 2020 - MENA Venture Investment Report | Sample
Katia Kachan6.1K views
MENA Technology and VC Overview (23Apr2018) by Andrew Lim
MENA Technology and VC Overview (23Apr2018)MENA Technology and VC Overview (23Apr2018)
MENA Technology and VC Overview (23Apr2018)
Andrew Lim71 views
2021 MENA Venture Investor Ranking Report (SAMPLE) by RashedRawashdeh
2021 MENA Venture Investor Ranking Report (SAMPLE)2021 MENA Venture Investor Ranking Report (SAMPLE)
2021 MENA Venture Investor Ranking Report (SAMPLE)
RashedRawashdeh4K views
MAGNiTT 2021 MENA Venture Investment Report Sample by Katia Kachan
MAGNiTT 2021 MENA Venture Investment Report SampleMAGNiTT 2021 MENA Venture Investment Report Sample
MAGNiTT 2021 MENA Venture Investment Report Sample
Katia Kachan13.8K views
White Star Capital Eastern US Venture Capital Landscape 2019 by White Star Capital
White Star Capital Eastern US Venture Capital Landscape 2019White Star Capital Eastern US Venture Capital Landscape 2019
White Star Capital Eastern US Venture Capital Landscape 2019
White Star Capital754 views
Data on venture capital in the Middle East by Ramzy Ismail
Data on venture capital in the Middle EastData on venture capital in the Middle East
Data on venture capital in the Middle East
Ramzy Ismail4.7K views
Innovate Finance Global Summit 2017 Roundup Report by Innovate Finance
Innovate Finance Global Summit 2017 Roundup ReportInnovate Finance Global Summit 2017 Roundup Report
Innovate Finance Global Summit 2017 Roundup Report
Innovate Finance3.1K views
White Star Capital Canadian Venture Capital Landscape 2019 by White Star Capital
White Star Capital Canadian Venture Capital Landscape 2019White Star Capital Canadian Venture Capital Landscape 2019
White Star Capital Canadian Venture Capital Landscape 2019
White Star Capital2.3K views
Government Grants & Incentives to Power Your Startup by Nifty Grants
Government Grants & Incentives to Power Your StartupGovernment Grants & Incentives to Power Your Startup
Government Grants & Incentives to Power Your Startup
Nifty Grants215 views
Celebrating Diversity in FinTech by Innovate Finance
Celebrating Diversity in FinTech Celebrating Diversity in FinTech
Celebrating Diversity in FinTech
Innovate Finance2.8K views

Similar to Fintech Investment Latin America 2019

Atlantico LatAm Digital Report 2022.pdf by
Atlantico LatAm Digital Report 2022.pdfAtlantico LatAm Digital Report 2022.pdf
Atlantico LatAm Digital Report 2022.pdfLeandroRafael29
535 views200 slides
CB Insights Global Fintech Report Q3 2019 by
CB Insights Global Fintech Report Q3 2019CB Insights Global Fintech Report Q3 2019
CB Insights Global Fintech Report Q3 2019Jeff Martinez
2.1K views88 slides
HASS Intro by
HASS IntroHASS Intro
HASS IntroIgnacio Fern
398 views4 slides
2019 Fintech Trends To Watch by CBInsights by
2019 Fintech Trends To Watch by CBInsights2019 Fintech Trends To Watch by CBInsights
2019 Fintech Trends To Watch by CBInsightsRoman Pravorskyi
1.5K views106 slides
KPMG study Pulse of fintech 2018 by
KPMG study Pulse of fintech 2018KPMG study Pulse of fintech 2018
KPMG study Pulse of fintech 2018Gaudefroy Ariane
423 views58 slides
Fintech M&A: From threat to opportunity by
Fintech M&A: From threat to opportunityFintech M&A: From threat to opportunity
Fintech M&A: From threat to opportunityWhite & Case
534 views28 slides

Similar to Fintech Investment Latin America 2019(20)

Atlantico LatAm Digital Report 2022.pdf by LeandroRafael29
Atlantico LatAm Digital Report 2022.pdfAtlantico LatAm Digital Report 2022.pdf
Atlantico LatAm Digital Report 2022.pdf
LeandroRafael29535 views
CB Insights Global Fintech Report Q3 2019 by Jeff Martinez
CB Insights Global Fintech Report Q3 2019CB Insights Global Fintech Report Q3 2019
CB Insights Global Fintech Report Q3 2019
Jeff Martinez2.1K views
2019 Fintech Trends To Watch by CBInsights by Roman Pravorskyi
2019 Fintech Trends To Watch by CBInsights2019 Fintech Trends To Watch by CBInsights
2019 Fintech Trends To Watch by CBInsights
Roman Pravorskyi1.5K views
Fintech M&A: From threat to opportunity by White & Case
Fintech M&A: From threat to opportunityFintech M&A: From threat to opportunity
Fintech M&A: From threat to opportunity
White & Case534 views
How is fin tech enabling financial inclusion in latin america by nimbleappgenie
How is fin tech enabling financial inclusion in latin americaHow is fin tech enabling financial inclusion in latin america
How is fin tech enabling financial inclusion in latin america
nimbleappgenie45 views
How Is FinTech Enabling Financial Inclusion in Latin America by Nimble Appgenie LLP
How Is FinTech Enabling Financial Inclusion in Latin America How Is FinTech Enabling Financial Inclusion in Latin America
How Is FinTech Enabling Financial Inclusion in Latin America
Chile FinTech Landscape by Varun Mittal
Chile FinTech LandscapeChile FinTech Landscape
Chile FinTech Landscape
Varun Mittal 15.4K views
Philippines Fintech Report 2020 by Jocelyn Cheung
Philippines Fintech Report 2020Philippines Fintech Report 2020
Philippines Fintech Report 2020
Jocelyn Cheung146 views
Cento Ventures Southeast Asia Tech Investments 2018 by Renata George
Cento Ventures Southeast Asia Tech Investments 2018Cento Ventures Southeast Asia Tech Investments 2018
Cento Ventures Southeast Asia Tech Investments 2018
Renata George506 views
Start up nation central fintech industry report 2018 by Paperjam_redaction
Start up nation central fintech industry report 2018Start up nation central fintech industry report 2018
Start up nation central fintech industry report 2018
Paperjam_redaction1.3K views
The future of fin tech and financial services by Varun Mittal
The future of fin tech and financial servicesThe future of fin tech and financial services
The future of fin tech and financial services
Varun Mittal 372 views
Venture Capital funding report highlights 2019 by nfinitiv
Venture Capital funding report highlights 2019Venture Capital funding report highlights 2019
Venture Capital funding report highlights 2019
nfinitiv717 views

More from Thiago Paiva

Projeto - Astronauta Parte II by
Projeto - Astronauta Parte IIProjeto - Astronauta Parte II
Projeto - Astronauta Parte IIThiago Paiva
888 views21 slides
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup? by
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?Thiago Paiva
6K views11 slides
Business Model - B2Blue by
Business Model - B2BlueBusiness Model - B2Blue
Business Model - B2BlueThiago Paiva
4.2K views1 slide
Consultoria Startup Biz Model - Modelagem de Negócios by
Consultoria Startup Biz Model - Modelagem de NegóciosConsultoria Startup Biz Model - Modelagem de Negócios
Consultoria Startup Biz Model - Modelagem de NegóciosThiago Paiva
4.3K views5 slides
Business Model - Instagram if they start to sell pictures by
Business Model - Instagram if they start to sell picturesBusiness Model - Instagram if they start to sell pictures
Business Model - Instagram if they start to sell picturesThiago Paiva
20.3K views1 slide
Business Model - Instagram by
Business Model - InstagramBusiness Model - Instagram
Business Model - InstagramThiago Paiva
27.3K views1 slide

More from Thiago Paiva(20)

Projeto - Astronauta Parte II by Thiago Paiva
Projeto - Astronauta Parte IIProjeto - Astronauta Parte II
Projeto - Astronauta Parte II
Thiago Paiva888 views
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup? by Thiago Paiva
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?
Qual Aceleradora do Startup Brasil é Melhor para Minha Startup?
Thiago Paiva6K views
Business Model - B2Blue by Thiago Paiva
Business Model - B2BlueBusiness Model - B2Blue
Business Model - B2Blue
Thiago Paiva4.2K views
Consultoria Startup Biz Model - Modelagem de Negócios by Thiago Paiva
Consultoria Startup Biz Model - Modelagem de NegóciosConsultoria Startup Biz Model - Modelagem de Negócios
Consultoria Startup Biz Model - Modelagem de Negócios
Thiago Paiva4.3K views
Business Model - Instagram if they start to sell pictures by Thiago Paiva
Business Model - Instagram if they start to sell picturesBusiness Model - Instagram if they start to sell pictures
Business Model - Instagram if they start to sell pictures
Thiago Paiva20.3K views
Business Model - Instagram by Thiago Paiva
Business Model - InstagramBusiness Model - Instagram
Business Model - Instagram
Thiago Paiva27.3K views
Business Model - EuDecido by Thiago Paiva
Business Model - EuDecidoBusiness Model - EuDecido
Business Model - EuDecido
Thiago Paiva2.7K views
Business Model - WeHeartIt by Thiago Paiva
Business Model - WeHeartItBusiness Model - WeHeartIt
Business Model - WeHeartIt
Thiago Paiva4.9K views
Business Model - EasyTaxi by Thiago Paiva
Business Model - EasyTaxiBusiness Model - EasyTaxi
Business Model - EasyTaxi
Thiago Paiva24.9K views
Business Model - Bedoo by Thiago Paiva
Business Model - BedooBusiness Model - Bedoo
Business Model - Bedoo
Thiago Paiva2.3K views
Métricas para Startups by Thiago Paiva
Métricas para StartupsMétricas para Startups
Métricas para Startups
Thiago Paiva3.6K views
Business Model - Kekanto by Thiago Paiva
Business Model - KekantoBusiness Model - Kekanto
Business Model - Kekanto
Thiago Paiva6.4K views
Busines Model - Lemon by Thiago Paiva
Busines Model - LemonBusines Model - Lemon
Busines Model - Lemon
Thiago Paiva3.1K views
Business Model - Zazcar by Thiago Paiva
Business Model - ZazcarBusiness Model - Zazcar
Business Model - Zazcar
Thiago Paiva5.2K views
Business Model - Dabee by Thiago Paiva
Business Model - DabeeBusiness Model - Dabee
Business Model - Dabee
Thiago Paiva1.8K views
Customer Development Manifesto by Steve Blank by Thiago Paiva
Customer Development Manifesto by Steve BlankCustomer Development Manifesto by Steve Blank
Customer Development Manifesto by Steve Blank
Thiago Paiva5.3K views
Manitesto do Desenvolvimento de Clientes do Steve Blank by Thiago Paiva
Manitesto do Desenvolvimento de Clientes do Steve BlankManitesto do Desenvolvimento de Clientes do Steve Blank
Manitesto do Desenvolvimento de Clientes do Steve Blank
Thiago Paiva2.7K views
Business Model - Airbnb by Thiago Paiva
Business Model - AirbnbBusiness Model - Airbnb
Business Model - Airbnb
Thiago Paiva54K views
Business Model - Hotmart by Thiago Paiva
Business Model - HotmartBusiness Model - Hotmart
Business Model - Hotmart
Thiago Paiva4.6K views
Business Model - Fashion.me by Thiago Paiva
Business Model - Fashion.meBusiness Model - Fashion.me
Business Model - Fashion.me
Thiago Paiva4K views

Recently uploaded

HTTP headers that make your website go faster - devs.gent November 2023 by
HTTP headers that make your website go faster - devs.gent November 2023HTTP headers that make your website go faster - devs.gent November 2023
HTTP headers that make your website go faster - devs.gent November 2023Thijs Feryn
22 views151 slides
Data Integrity for Banking and Financial Services by
Data Integrity for Banking and Financial ServicesData Integrity for Banking and Financial Services
Data Integrity for Banking and Financial ServicesPrecisely
25 views26 slides
Melek BEN MAHMOUD.pdf by
Melek BEN MAHMOUD.pdfMelek BEN MAHMOUD.pdf
Melek BEN MAHMOUD.pdfMelekBenMahmoud
14 views1 slide
STPI OctaNE CoE Brochure.pdf by
STPI OctaNE CoE Brochure.pdfSTPI OctaNE CoE Brochure.pdf
STPI OctaNE CoE Brochure.pdfmadhurjyapb
14 views1 slide
PharoJS - Zürich Smalltalk Group Meetup November 2023 by
PharoJS - Zürich Smalltalk Group Meetup November 2023PharoJS - Zürich Smalltalk Group Meetup November 2023
PharoJS - Zürich Smalltalk Group Meetup November 2023Noury Bouraqadi
132 views17 slides
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院 by
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院IttrainingIttraining
58 views8 slides

Recently uploaded(20)

HTTP headers that make your website go faster - devs.gent November 2023 by Thijs Feryn
HTTP headers that make your website go faster - devs.gent November 2023HTTP headers that make your website go faster - devs.gent November 2023
HTTP headers that make your website go faster - devs.gent November 2023
Thijs Feryn22 views
Data Integrity for Banking and Financial Services by Precisely
Data Integrity for Banking and Financial ServicesData Integrity for Banking and Financial Services
Data Integrity for Banking and Financial Services
Precisely25 views
STPI OctaNE CoE Brochure.pdf by madhurjyapb
STPI OctaNE CoE Brochure.pdfSTPI OctaNE CoE Brochure.pdf
STPI OctaNE CoE Brochure.pdf
madhurjyapb14 views
PharoJS - Zürich Smalltalk Group Meetup November 2023 by Noury Bouraqadi
PharoJS - Zürich Smalltalk Group Meetup November 2023PharoJS - Zürich Smalltalk Group Meetup November 2023
PharoJS - Zürich Smalltalk Group Meetup November 2023
Noury Bouraqadi132 views
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院 by IttrainingIttraining
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院
【USB韌體設計課程】精選講義節錄-USB的列舉過程_艾鍗學院
TouchLog: Finger Micro Gesture Recognition Using Photo-Reflective Sensors by sugiuralab
TouchLog: Finger Micro Gesture Recognition  Using Photo-Reflective SensorsTouchLog: Finger Micro Gesture Recognition  Using Photo-Reflective Sensors
TouchLog: Finger Micro Gesture Recognition Using Photo-Reflective Sensors
sugiuralab21 views
Voice Logger - Telephony Integration Solution at Aegis by Nirmal Sharma
Voice Logger - Telephony Integration Solution at AegisVoice Logger - Telephony Integration Solution at Aegis
Voice Logger - Telephony Integration Solution at Aegis
Nirmal Sharma39 views
Special_edition_innovator_2023.pdf by WillDavies22
Special_edition_innovator_2023.pdfSpecial_edition_innovator_2023.pdf
Special_edition_innovator_2023.pdf
WillDavies2218 views
SAP Automation Using Bar Code and FIORI.pdf by Virendra Rai, PMP
SAP Automation Using Bar Code and FIORI.pdfSAP Automation Using Bar Code and FIORI.pdf
SAP Automation Using Bar Code and FIORI.pdf
Igniting Next Level Productivity with AI-Infused Data Integration Workflows by Safe Software
Igniting Next Level Productivity with AI-Infused Data Integration Workflows Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Igniting Next Level Productivity with AI-Infused Data Integration Workflows
Safe Software280 views
Future of AR - Facebook Presentation by ssuserb54b561
Future of AR - Facebook PresentationFuture of AR - Facebook Presentation
Future of AR - Facebook Presentation
ssuserb54b56115 views
GDG Cloud Southlake 28 Brad Taylor and Shawn Augenstein Old Problems in the N... by James Anderson
GDG Cloud Southlake 28 Brad Taylor and Shawn Augenstein Old Problems in the N...GDG Cloud Southlake 28 Brad Taylor and Shawn Augenstein Old Problems in the N...
GDG Cloud Southlake 28 Brad Taylor and Shawn Augenstein Old Problems in the N...
James Anderson92 views
Case Study Copenhagen Energy and Business Central.pdf by Aitana
Case Study Copenhagen Energy and Business Central.pdfCase Study Copenhagen Energy and Business Central.pdf
Case Study Copenhagen Energy and Business Central.pdf
Aitana16 views

Fintech Investment Latin America 2019

  • 2. Thiago Paiva 1. Intro 2. The Author 3. Fintech Ecosystem 4. Investments ○ Total Investments in the Region ○ Investments per Country ○ Investments per Month ○ Investments per Industry Segment ○ Main Investments Rounds ○ Most Active Investors in Fintech ○ Debt Financing Deals 5. Merger & Acquisitions 6. Final Thoughts 7. Resources ○ Fintech Radars Index
  • 3. Thiago Paiva Intro First of all, thanks for reading this material! My name is Thiago Paiva and I'm a fintech entrepreneur, investor, and columnist. I've been working with startups and innovation for the past 9 years in Brazil, Mexico, US, and Singapore. I have invested and accelerated more than 60 startups from which more than 20 were fintech startups from 8 different countries while working at Wayra in Brazil and Startupbootcamp Fintech in Mexico. Since I started to invest in fintechs, in 2013, the market radically changed. In less than 6 years, we saw the birth of the first fintech unicorns in the region, as well as IPOs from Stone (NASDAQ) and Pagseguro (NYSE) in the US. My goal with this report is to shed some light to the fintech ecosystem in Latin America that has been under-appreciated for a long time despite its huge potential. Finally, if you like this material, please, share it! Thiago Oliveira de Paiva
  • 4. Thiago Paiva The Author I'm a fintech entrepreneur, investor, and columnist! I have been actively engaged in the Latin American ecosystem since 2010. During this period, I have evaluated 2,600+ and invested in 60+ startups from 9 different countries while working at Wayra Brazil and Startupbootcamp Fintech Mexico. I studied Fintech at MIT and Business with Concentration in Finance at UCLA. I write about fintech in Latin America in international and regional publications and also develop reports analyzing the ecosystem. I'm currently a Product Manager at Oyster Financial, a Neobank for SMEs in Latin America, leading its marketplace initiative. I'm also a TechCrunch contributor.
  • 6. Thiago Paiva The fintech ecosystem in Latin America has been growing quite strongly through the past few years, drawing attention from reputable investors such as Andreessen Horowitz, Sequoia Capital, and SoftBank. In Latin America, I believe we have an interesting combination that creates a perfect setup for fintechs to thrive and prosper. Just to highlight some of the main issues: ● People in the region suffered many financial crises, making them very skeptical of banks; ● Poor financial infrastructure excludes people from accessing basic financial services such as payments and credit, leading to a high level of informal economy ; ● Half of it's 640 million population is unbanked; ● In most countries, there is an oligopoly of financial institutions, leading to poor customer support, abusive and hidden fees, and weak efforts to digitalize; On the other side, Latin America has 68% of smartphone penetration with a highly connected population, looking for solutions beyond the traditional financial systems to solve their problems. Under these circumstances, fintechs are starting to draw more and more attention from customers and investors. Fintech Ecosystem in Latin America Source: The Mobile Economy Latin America and the Caribbean 2018
  • 7. Thiago Paiva 124 Updated Mar/19 394 Updated Jun/19 Number of Fintechs per Country Source: IDB-Fintech Latin America 2018 , and Fintech Radars from Finnovista According to IDB, Latin America has around 1166 fintechs. Brazil (377) and Mexico (394) are leading in number of fintechs, with Mexico having a few more but with Brazilian data a little outdated. The other countries in the region are way behind with Colombia (124) and Chile (112) trying to establish themselves as the third largest ecosystem. 377 Updated May/18 110 Updated Mar/18 112 Updated Aug/19
  • 9. Thiago Paiva Fintech Adoption Source: https://fintechauscensus.ey.com/2019/Documents/ey-global-fintech-adoption-index-2019.pdf Consumer Fintech Adoption Index - EY Average 64% Latin America is one of the regions with fastest fintech adoption, according to EY Consumer Adoption Index 2019. It had 3 countries in the Top 10 (Colombia, Peru, and Mexico) and all of the largest economies above the average, 64%, of the 27 researched countries.
  • 10. Thiago Paiva Most Funded Fintechs ● BR - Nubank (US$ 820M): The largest neobank outside of China with more than 20M customers, worthing US$ 10 billion; ● BR - Quinto Andar (US$ 335M): An unicorn proptech that facilitates the rent of properties by offering financial services; ● BR - Creditas (US$ 314M): A secured online loan to consumers; ● AR - Ualá (US$ 194M): Neobank for personal accounts; ● MX - Clip (US$ 160M): A card payment provider similar to Square; ● MX - Konfio (US$ 143M): An unsecured online loans to SMEs; ● BR - Neon (US$ 121M): A neobank with personal and business account; ● BR - Loft (US$ 88M): Is a proptech that facilitates the purchase and sale of properties; ● BR - GuiaBolso (US$ 66M): PFM and lending, similar to Mint; ● AR - Technisys (US$ 64M): Digital transformation; ● MX - Credijusto (US$ 53M): A secured online loans to SMEs; ● BR - WEEL (US$ 44.5M): Online factoring; ● AR - Ripio (US$ 44.4M): Bitcoin wallet and exchange; ● BR - ContaAzul (US$ 37M): SMEs financial management; ● BR - Ebanx (US$ 30M): An unicorn online payment processor; Source: Crunchbase and startup press releases * Only equity deals were considered
  • 11. Thiago Paiva Emerging Trends Source: https://techcrunch.com/2019/12/05/a-look-at-latin-americas-emerging-fintech-trends/ ● Financial services for the gig economy ● Rethinking insurance ● Providing basic financial services to MSMEs ● Everyone wants to be a bank (Banking-as-a-Service) ● Proptech meets fintech Although the fintech ecosystem in the region was impulsed by startups in payment (Stone, Pagseguro, Clip), neobank (Nubank, Ualá, Neon), and lending (Creditas, Konfio, Credijusto), we're starting to see some other emerging trends. Find them below: (if you want to know more, check my TechCrunch article: "A look at Latin America’s Emerging Fintech Trends")
  • 13. Thiago Paiva Since 2011, venture capital investment in Latin America has boomed, achieving more than 150% average compound annual growth. In 2019, according to Crunchbase data, the region reached US$ 4.2 billion raised in 430 equity deals; a 213% increase from the previous year. Fintech is the leading segment in the region with a total of US$ 2.94 B raised (US$ 2.22 B in equity and US$ 720.2 M in debt). Investments in Latin America Source: Data from LAVCA (2011-2018) and Crunchbase (2019)
  • 14. Thiago Paiva Total Investments in the Region Latin American fintechs raised a total of US$ 2.94 B (US$ 2.22 B in equity and US$ 720.2 M in debt) in 147 deals in 2019, with 26 not disclosing the amount invested. In the Q4 alone, there were US$ 1.089 B in 22 deals. The amounts includes the Softbank equity investment in Banco Inter (BIDI4.SA) (a listed challenger bank) of US$ 331.7 M. Source: proprietary data from deals
  • 15. Thiago Paiva Number of Equity Investments per Country Source: proprietary data from deals In 2019, Brazil led the investments in the region with 45.5% of all the deals in the region. Mexico secured its second spot while Colombia is positioning itself as the third most dynamic fintech country in the region.
  • 16. Thiago Paiva Volume of Equity Investments per Country Considering the volume of investments, the Brazilian fintechs captured an impressive 72.2% of all the disclosed investments in the region while Mexico remained in the second position with 16.8%. Although Colombia had more deals, Argentina was able to raise a few large rounds, which enabled it to get the third place. Source: proprietary data
  • 17. Thiago Paiva Volume of Equity Investments per Month Although the year started with a good amount of deals, the volume invested was not significant compared to the rest of the year. Q2 and Q3 were the most important quarters of the year with most of the activity but also concentrating 73% of all the volume invested, with July saw the most investment, with US$ 733.9 M. Source: proprietary data
  • 18. Thiago Paiva Equity Investment by Industry Segment Lending (consumer and business) is still a relevant fintech segment in Latin America with a little over 30% of all deals on a total of US$ 519 M in equity investment. Even so, Digital Banking became the hottest segment attracting the largest share of the investors money, 54.3%, on total of US$ 1.058 B. Another trending segment is Mortgage and Real Estate attracting US$ 269.5 M. Source: proprietary data
  • 19. Thiago Paiva Equity Investment by Industry Segment - 4Q 2019 In the Q4, Digital Banking dominated the VCs interest, attracting 67.5% of all money invested in the quarter. We also saw many Mortgage and Real Estate deals with small value, this is probably the reverberation of the large investments of Loft, Flat, and QuintoAndar generating entrepreneurs and investors interest in this market. Source: proprietary data
  • 20. Thiago Paiva US$ 96 Million (BR - Nov 19) US$ 150 Million (AR - Jun 19) Largest Deals in 2019 US$ 100 Million (MX - May 19) US$ 231 Million (BR - Jun 19) US$ 400 Million (BR - Jul 19) US$ 331.7 Million Listed Company (BR - Jul 19) US$ 250 Million (BR - Sep 19) Source: proprietary data. Selected investors in the round US$ 100 Million (MX - Dec 19)
  • 21. Thiago Paiva TOP 10 Deals - Comparative Chart Source: proprietary data Last year was we saw many mega-rounds (over US$ 100 M), Nubank, QuintoAndar, Creditas, Ualá, Clip, and Konfio all raised mega-rounds with Neon almost reaching that mark. Another mega-round was the Softbank investment in the listed company Banco Inter.
  • 22. Thiago Paiva TOP 10 Deals - Share of Equity Investments Source: proprietary data Venture Capital is a power-law business where usually a few deals concentrate a large share of the total. We can clearly see this happening in 2019 fintech deals, where the TOP 10 deals accumulated 67% of the total volume of equity investments of the total 134 deals.
  • 23. Thiago Paiva GROWTH-STAGE Highlighted VCs Actively Investing Local Foreigners BRAZIL MEXICO CHILE EARLY-STAGE ARGENTINA
  • 24. Thiago Paiva Here are the most active equity investors (with exception of accelerators) in 2019. Eight investors had 4 or more investments in fintech; Five are regional funds and three are global funds. Most Active Equity Investors (1 of 2) 7 7 Investors Disclosed Deals Source: proprietary data 8
  • 25. Thiago Paiva 6 Most Active Equity Investors (2 of 2) 6 6 6 4 Source: proprietary data * Mountain Nazca participated in 2 rounds of investment in Albo in 2019 4
  • 26. Thiago Paiva Debt Financing Deals On the debt side, although Brazil had almost half of all deals, Mexico led the debt financing in the region with US$ 400 M, 51.9% of all amount in debt financing. Goldman Sachs is positioning it as the most relevant debt finance investor in the region, investing a total of US$ 475 M in 2019. Although there are many investors interested in investing in larger rounds, fintechs are having problems to raise rounds smaller than US$ 50 M. Source: proprietary data
  • 27. Thiago Paiva Merger & Acquisitions
  • 28. Thiago Paiva Last year, there were only 13 M&A deals in fintech. Most of them had the amount undisclosed but most likely weren't large exits. The only major deal was the long awaited XP Investimentos IPO, the Brazilian digital broker was listed in NASDAQ, raising US$ 1.96 billion at a US$ 14.9 billion valuation. As the market matures and more money is invested, we should expect to see more deals. Nubank and Creditas both mentioned that they are looking for acquisitions that could fuel their growths. Merger & Acquisitions Source: proprietary data
  • 29. Thiago Paiva Fintech Exits Acquired by Neon Undisclosed amount (Sep 19) Acquired by Carrefour Undisclosed amount (Oct 19) Acquired by Kushki Pagos Undisclosed amount (Aug 19) Acquired by Yonder Media Mobile Undisclosed amount (Aug 19) IPO - NASDAQ:XP (Dec 19) Market Cap US$ 14.9B Acquired by Rappi Undisclosed amount (Feb 19) Source: proprietary data * Spun-off its e-wallet, now called Mibo
  • 30. Thiago Paiva Fintech Exits Acquired by Foxbit Undisclosed amount (Nov 19) Acquired by Advent 51% for US$ 725M (Jan 19) Acquired by Polygon Fintech Undisclosed amount (May 19) Acquired by Omni US$ 24.4 M (May 19) Acquired by Grin Undisclosed amount (Jun 19) Acquired by Capital Tech Undisclosed amount (Aug 19) Source: proprietary data
  • 31. Thiago Paiva Fintech Exits Acquired by Creditas Undisclosed amount (Aug 19) Source: proprietary data
  • 33. Thiago Paiva Final Thoughts Fintech in the region is booming! Latin American fintechs attracted over US$ 2 billion on equity investment in 2019, overcoming the previous year total venture capital investment in the region. The success of Stone, Nubank and other fintechs is attracting attention from global investors that are eager to invest in the potential of the region. Softbank started the year commiting a US$ 5 billion fund for the region, and started to deploy this capital quite fast. With so many mega-rounds, some local investors are worried about high valuations and excess cash in the market. I don't think that is the case, we're still far away from other more developed regions and even compared regions such as Southeast Asia. Brazil is still the leading market in the region but Mexico is quickly gaining relevance. Following them, Colombia is trying to positioning itself as the third fintech market in the region, Rappi success case helped foster an entrepreneurial culture and attract investors interest. Following a global trend, the most relevant segment is digital banking with Nubank, Neon, and Ualá as the leading players. Lending and Payments are still quite relevant, however, Mortgage & Real Estate is a relevant emerging trend that is attracting high profile investors to the region. Continue in the next slide
  • 34. Thiago Paiva Final Thoughts Of course, Latin America has still a long way to go to compete with the main fintech hubs in the world. Although moving in the right direction, banking and fintech regulation in the region is evolving at slower pace than Europe and Asia. The lack of technical talent such as developers and product managers is a key challenges fintechs face, leading many of them to import talent and even a few to structure teams outside of the region. This in-flow of foreign talent and investors is bringing a stronger startup culture as well as the state of the art techniques. This combination is helping strengthening the local ecosystem. The lack of more relevant exits was a low-light of 2019, with XP Investimentos IPO been the only major deal. Despite that, 2020 has all the ingredients to have a more active M&A environment with well-funded fintechs looking to aggressively expand regionally. Despite of the challenges, the region is at a turning point now! We have never seen so much capital and talent invested in creating amazing companies, trying to become the next Nubank! Do you agree with me? I would love to hear your opinion! Send me a message at thiago.o.paiva@gmail.com Share this Report
  • 36. Thiago Paiva Materials by the Author ● Report: ○ Banking and Fintech Market in Latin America 2019 ○ Fintech Investment Report Latin America 1H2019 ○ Fintech Investment Report Latin America 3Q2019 ○ Fintech Market in Singapore 2018 ● Iupana Monthly Column : ○ Fintech Snapshot of the Latin American Market ● TechCrunch Article: ○ The Emergence of Super Apps in Latin America ○ The Battle to Become the Mexican Nubank Just Started ○ A Look at Latin America's Emerging Fintech Trends
  • 37. Thiago Paiva Resources ● IDB Report - Financial Latin America 2018: Growth and Consolidation ● LAVCA Report - Latin America Startup Heatmap ● GSMA Intelligence Report - The Mobile Economy Latin America and the caribbean 2018 ● Finnovista Fintech Radar Mexico 2019 ● Finnovista Fintech Radar Brazil 2018 ● Finnovista Fintech Radar Colombia 2019 ● Finnovista Fintech Radar Argentina 2018 ● Finnovista Fintech Radar Chile 2019 ● ALLVP - Early Stage VCs Active in Latin America ● Crunchbase ● EY Fintech Adoption Index 2019
  • 38. Thiago Paiva Fintech Radar - Mexico Source: Finnovista Fintech Radar Mexico 2019
  • 39. Thiago Paiva Fintech Radar - Brazil Source: Finnovista Fintech Radar Brazil 2018
  • 40. Thiago Paiva Fintech Radar - Colombia Source: Finnovista Fintech Radar Colombia 2019
  • 41. Thiago Paiva Fintech Radar - Argentina Source: Finnovista Fintech Radar Argentina 2018
  • 42. Thiago Paiva Fintech Radar - Chile Source: Finnovista Fintech Radar Chile 2019
  • 43. Thiago Paiva THANKSFORREADING! Please, don't be shy and share this material! @ThiagoPaivaFollow me at: