VC's Biggest Bets on LatAm Fintech Startups
LatAm fintech sees 39% of VC funding, minting 6 unicorns in 2021, with BBVA backing two $300M rounds.
It’s an exciting time to start a fintech startup in LatAm, with 39% of the VC funding dedicated to that sector. The vast pour of capital minted six new fintech unicorns in 2021. The disruption potential is very appealing to investors, who recognize the old banks and institutions with poor customer service and antiquated technology as fintech companies’ target.
We can confirm the disruption from our own experience in Mexico: Last year, it took us 5 minutes to open a bank account with albo and a credit card with Nubank; but with BBVA, the country’s biggest bank, we were instructed to visit our local branch and wait in line to open a new account, which often takes an hour or more.
On Monday, Chilean Xepelin broke a record by receiving the largest Series B funding round by a Spanish-speaking startup in LatAm ($111M). Most of the big players have been coming from Brazil. Argentinian Ualá is the other exception, having received more funding than any current startup (Nubank isn’t counted since it’s now publicly traded).
The big three from Brazil are Neon, EBANX, and C6 Bank. Neon has had its last two rounds worth a whopping $300M each, both led by BBVA. EBANX is a digital payments solution that operates in most Latin American countries. C6 Bank has the highest seed round on the list with $96M that came from “undisclosed investors,” according to CB Insights.