After a short hiatus, we’re back 😊

My name is Jaime Novoa and I have a new addition to the Dealflow team. Yoel Rodriguez has joined us to take Dealflow to the next level. For now, we’ll be once again sending the LatAm version of the newsletter every Monday and we have a few more things in the pipeline. Stay tuned!

This is a free newsletter supported by sponsors. If you’re interested in sponsorship opportunities, drop me an email at jaime@dealflow.es

Startup funding news 💸

🇧🇷 Scala Data Centers secures $527M from Coatue Tactical Solutions and IMCO to expand operations in Latin America and boost cloud and AI technologies. The funding follows a partnership to develop Scala AI City, positioning Brazil as a leader in AI infrastructure.

🇧🇷 Fintech Asaas raises $144M in a round led by Bond to expand its services and enhance capabilities in the financial tech sector. The investment reflects increasing demand for innovative financial solutions.

🇧🇷 Agrolend, a digital bank for rural producers, secures $53M in a Series C round led by Creation Investments and Syngenta. The funding will expand its capital base to $88M and boost its credit portfolio to $527M, targeting small and medium-sized producers across Brazil.

🇨🇴 Fintech ExcelCredit raises $50M from Japanese bank Nomura to boost financial inclusion for low-income seniors. The company offers loans to pensioners and public employees via payroll deduction, serving 65,000 clients since 2013.

🇧🇷 Real estate fintech Versi raises $8.78M through CRI bonds to expand support for developers building affordable homes under the Minha Casa Minha Vida program. Since 2014, Versi has invested $26M in over 55 projects, focusing on small and medium-sized developers.

🇧🇷 Brazilian fintech Barte raises $8M in a Series A round led by AlleyCorp, with participation from NXTP, VentureFriends, and Force Over Mass Capital. The funds will scale its B2B payments platform, which automates payment reconciliation for businesses.

🇧🇷 Brazilian fintech Gibb raises $5.27M from SRM Ventures to expand operations and grow its customer base. Gibb specializes in payroll streaming, allowing employees early access to earned wages, and currently serves over 10,000 employees.

🇺🇾 Uruguayan biotech Xeptiva raises $2.5M in a seed round led by Zentynel to develop veterinary vaccines for osteoarthritis pain and atopic dermatitis in pets. The vaccines are in clinical trials, aiming to improve treatments for chronic inflammatory conditions in animals.

🇧🇷 Brazilian fintech Tuna raises $2M in a round led by ABSeed to expand its team and prepare for Series A. The platform improves payment approval rates and reduces fraud costs.

🇲🇽 Mend secures a $1.5M credit line from Addem Capital to expand its product offerings and improve access to healthcare services in Mexico. The funding supports Mend's mission to democratize healthcare with transparent financial solutions for life-changing surgeries.

🇺🇾 Amazon invests $1M in Horizon, a Uruguayan startup that helps companies optimize processes with AI. Horizon was selected for the AWS Generative AI Accelerator 2024. The co-founder discusses AI's transformative impact and the challenges ahead.ative impact and the challenges ahead.

🇨🇴 Karrot, founded by Santiago and Juan Pineda, secures $1M to enhance its platform helping Colombian SMEs digitize operations. The app integrates sales channels to boost efficiency, with a goal to reach 10,000 businesses in five years.

🇧🇷 Brazilian proptech Morada.ai raises $1M to enhance its AI chatbot Mia and expand operations. The platform simplifies property buying and renting, automating tasks for developers and brokers. Morada.ai has seen 400% growth, serving nearly 100 developers in 17 states.

🇧🇷 AI startup 2Neuron raises $530K from FUNSES1 to expand its technology, which predicts and prevents industrial machine failures. The funds will support opening a São Paulo office and entering new markets.

🇧🇷 AuraPura, a Brazilian marketplace for holistic therapy, raises $527K in a pre-seed round from undisclosed angel investors. The funds will develop a platform connecting users with wellness specialists, addressing the growing demand for digital solutions in holistic therapy.

🇧🇷 Legaltech startup Intelijus secures $490K in a pre-seed round to enhance LIVIA, its AI-powered legal assistant. The company aims to automate legal tasks and expand services beyond Brazil by 2025.

🇧🇷 TRAG, a parametric agricultural insurance platform, raises $370K in its first round to enhance its AI-driven platform for Brazil's agricultural insurance market. The funds will support new product development and key hires to simplify claims and tackle climate change challenges in agribusiness.

🇧🇷 HR tech startup Mentora raises $300K in a pre-seed round led by DOMO.VC, with support from iFood co-founders. The funds will enhance its GenAI-powered leadership development platform and grow its customer base.

🇨🇱 Blue Express, a logistics company tied to the Angelini family, makes its first venture investment in Chilean startup Reversso, which automates e-commerce returns and exchanges. The investment aims to help businesses retain up to 80% of sales at risk of return through advanced technology

M&A transactions 🎊

🇧🇷 ClearSale announces its acquisition by Serasa Experian in a deal valued at $351M. ClearSale's shares will be exchanged for redeemable preferred shares of Serasa, expanding Experian's presence in Brazil and enhancing its data management capabilities. Last year, ClearSale reported $88M in net revenue and serves 7,400 active customers.

🇧🇷 Zilor, a São Paulo-based sugarcane company, acquires competitor Salto Botelho Agroenergia for $105M after a failed sale to Bahia Etanol. The deal was finalized following the exit of former owner Amerra Capital Management.

🇧🇷 SLC Agrícola agrees to purchase an 18.8% stake in its subsidiary SLC Landco for $92M, payable in two installments. The acquisition aims to increase flexibility in optimizing agricultural assets and support operational expansion.

🇧🇷 Randoncorp (RAPT4) acquires European auto parts distributor EBS Aftermarket for $72M to boost its international presence. The deal will diversify Randoncorp's product offerings and expand its brand portfolio in the auto parts sector.

🇧🇷 Unimed merges its tech companies, Zitrus and Unio, to form Nexdom, a healthtech focused on improving data sharing across its network. Starting with $12.3M in revenue and a $44M valuation, Nexdom aims to serve 80% of Unimed operators in Brazil within three years, leveraging automation and machine learning.

🇧🇷 Italian software giant Zuchetti acquires Brazilian digital signature platform D4Sign for $31.6M. The deal aims to boost D4Sign's growth in Brazil and internationally, following its $6.1M revenue last year. D4Sign's founders will continue managing the company while leveraging Zuchetti's global reach.

🇦🇷 Argentine unicorn Aleph enters the fintech sector by acquiring Localpayment, integrating payment processing to expand its services. The move addresses rising demand for financial services in Latin America and strengthens Aleph’s position in digital advertising and fintech.

🇦🇷 Argentine tech company Globant acquires U.S.-based Exusia, specializing in AI, data engineering, and cloud migration. This acquisition will expand Globant's AI and data services, leveraging Exusia's partnerships with platforms like Microsoft Azure and AWS.

🇨🇴 Colombian bank Davivienda acquires payment gateway ePayco to strengthen its position in the digital payments sector. Founded in 2011, ePayco specializes in online payment processing, offering services like recurring payments and fund splitting for merchants.

🇧🇷 Dexco sells its faucet and electric shower division, including brands Corona and Thermosystem, to competitor Zagonel. However, Dexco retains the Hydra brand, which focuses on flushing systems and water purifiers. This sale aligns with Dexco's strategy to exit the faucet and electric shower market.

🇧🇷 Aneel approved the sale of Amazonas Energia to Âmbar, but imposed conditions, including taking on $1.75B in debts and capping consumer costs at $1.4B. Âmbar has 24 hours to respond, expressing concerns over profitability. The deal has drawn attention from government officials, raising questions about the future of the energy distributor.

🇧🇷 Shoulder acquires a 40% stake in carioca boutique Haight, following its acquisition of men's brand Oriba. The move aims to tap into a younger, high-income demographic and boost international expansion, with Haight already exporting 20% of its business to markets like London and the U.S.

Investor & accelerator news 🚀

🇲🇽 Redwood Ventures partners with Seedstars Capital to invest $200M in Latin American startups. The collaboration aims to boost startup growth by combining local expertise with global networks, helping connect the region’s innovation with international markets.

🇧🇷 Distrito and Santander launch an AI-focused acceleration program offering $4,400 prizes to winning startups and SMEs. Participants will receive mentorship and opportunities to connect with investors.

🇨🇱 Chilean food processing company Carozzi launches a $6M corporate venture fund to invest in agritech, foodtech, supply chain, manufacturing, and pet care startups. The fund will invest $300K to $1M in three startups annually, targeting pre-seed to Series A stages with a capped 10% equity stake.

🇨🇱 Impacta VC selects 13 Latin American startups for its Miami Softlanding Program 2024. The startups, with $6.3M in sales, seek to attract U.S. investors and expand into the U.S. market. CEO David Alvo emphasizes the program's aim to build a growth bridge between Latin America and the U.S.

🇨🇱 Imagine Ventures closes its first fund, aiming to invest $4M in 13-15 pre-seed and seed startups across Latin America by mid-2025. The fund has already partnered with eight startups from four countries. Managing Partner Javier Cueto calls it a key milestone in expanding their regional impact

Startup news 💡

🇨🇴 Mercado Pago, the financial arm of Mercado Libre, launches a digital wallet in Colombia to boost digital payment solutions. The wallet allows users to register bank cards, manage finances, and access discounts. With over 600,000 app downloads, Mercado Pago aims to lead the country's digital payment shift.

🇨🇴 Wenia, a crypto platform by Grupo Bancolombia, is launching WeniaCard, a digital card for cryptocurrency purchases at any MasterCard-accepting store, with Apple Pay and Google Pay integration. Aiming to boost digital asset adoption, Wenia is reducing conversion fees. With 6M crypto users in Colombia, its app has over 40,000 downloads.

🇲🇽 Mexican fintech unicorn Stori launches Inversión+, a fixed-term investment product offering up to 15.5% annual returns. Customers can start with as little as $5 and select 90, 180, or 360-day investment terms, targeting underserved populations in Mexico.

🇨🇴 Platzi partners with DeVry University to offer Latin Americans access to accredited U.S. degrees at discounted rates. Platzi students receive a 50% discount, which can increase to 75% based on exam performance. Programs include online degrees in Software Development and Cybersecurity.

🇧🇷 Sem Parar, in partnership with Liga Ventures, is accepting applications for the 2024 edition of its Inova Sem Parar program until October 27. The initiative focuses on improving fraud prevention and data enrichment for business acceleration. In the past three years, it has led to seven accelerations and four new services launched with startups

Big company & policy news 💡

🇧🇷 Raízen commits to investing $2B in second-generation ethanol (E2G), biogas, and biomethane production as part of a government program to promote sustainable fuels. The company plans to build nine new E2G plants, expanding its operations in São Paulo.

🇧🇷 Eneva launches a $740M follow-on offering of common shares to fund energy generation and natural gas exploration projects. The company will initially offer 228.6 million shares, with the option to increase based on demand.

🇧🇷 Seara, a JBS subsidiary, secures $264M in its first issuance of Agribusiness Receivables Certificates (CRAs). Demand reached $440M, highlighting strong interest in these tax-advantaged investments. This move allows agribusiness companies to issue debt at more favorable rates.

🇧🇷 Warburg Pincus acquires a minority stake in Contabilizei for $125M, becoming the largest shareholder of the Brazilian accounting tech firm. The investment will support Contabilizei’s growth, focusing on automating accounting services for small businesses and expanding financial offerings.

🇧🇷 Grupo FSB, Brazil's largest PR firm, has achieved over $122M through M&As and aims for $175M by 2028. The company has expanded into digital marketing and influencer relations, focusing on automation and AI to improve services. CEO Marcos Trindade highlights the growing importance of reputation management in a complex media landscape.

🇧🇷 Zilor sells 70% of its biotechnology unit, Biorigin, to French company Lesaffre for $117M, retaining a 30% stake. The deal, pending regulatory approval, will see both companies continue to operate independently until finalized.

🇧🇷 Athon Energia secures $105M in the largest incentivized debenture issuance for distributed generation, with demand exceeding supply threefold. The funds will refinance existing solar plants and invest in new projects, aiming to double capacity to 300 MWp in five years

Interesting reads 💡

In Q3 2024, startup investments in Latin America totaled $879M, a 22% drop from the previous quarter and 25% lower than Q3 2023. Brazil raised $509.5M, down 10% year-over-year, falling short of expectations as rising interest rates continue to impact the market