Welcome to the 7th edition of the Dealflow LatAm newsletter: a weekly summary of everything that happened in the LatAm startup and investment ecosystem.

This is newsletter is put together by Yoel Rodriguez with the help of Jaime Novoa. Yoel 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!

Startup funding news 💸

🇧🇷 Shopper, a Brazilian virtual supermarket, raised $26 million in a new funding round with significant investments from iFood, GIC, and Minerva. Pending CADE approval, the investment is expected to proceed as it represents a minority stake. This round follows a Series C in 2021, after two years of discussions between Shopper and iFood.

🇨🇴 Latii, a New York-based proptech startup founded by three Colombians, raised $5 million in a seed round led by Leadout Capital to streamline the carpentry supply chain and reduce costs for U.S. clients. The funds will support AI tool development to improve the quoting process, with over $1 million in orders already projected for 2024.

🇵🇪 Augmental, a Peruvian-American neurotech startup, raised $4 million in a seed round to launch MouthPad, a wearable interface enabling digital communication via neuromotor signals. With backing from multiple investors, Augmental aims to enhance human-computer interaction and secure FDA approval to integrate its technology with electronic wheelchairs.

🇧🇷 Brazilian fintech Oxpay raised $3.5 million from SRM Ventures to enhance its digital account services for transportation companies and drivers. The funds will support Oxpay’s client expansion and a tenfold increase in payment volume by next year, strengthening its credit offerings for Brazil's freight drivers.

🇧🇷 Lerian, a core banking startup founded in 2023 by former Dock executives, raised $3.1 million in an early-stage round led by MAYA Capital, with additional investors participating. The funds will help expand Lerian’s tech team and accelerate the development of its open-source core banking ledger, Midaz, to attract global clients.

🇧🇷 Central da Visão, a Brazilian healthtech, raised $1.7 million in a Series A round led by HT3 Investimentos to expand access to affordable eye surgeries. With over 50 affiliated clinics and 200 surgeons across 14 states, the company aims to perform 100,000 surgeries by 2026, using technology to optimize the patient surgical journey.

🇧🇷 Multiledgers, a Brazilian startup with a blockchain solution for managing environmental assets, raised $1 million in a joint investment from Oxygea and Indicator Capital. The funding will support technology improvements and growth in the Renewable Energy Certificates (RECs) market, enhancing the reliability of sustainable business models.

🇨🇱 Brota Superfoods, a Chilean foodtech startup, raises $630,000 from Manutara Ventures after winning the Manutara Ventures Challenge. The funds will support its U.S. expansion, starting with a launch in Miami, as Brota develops AI-enhanced plant-based foods.

🇲🇽 Revi, a startup developing an AI marketing copilot for businesses on WhatsApp, raised $436,000 in a pre-seed round led by U.S.-based Veredas Partners. Revi plans to grow its team and enhance AI features to drive revenue for online stores.

🇦🇷 Samu.ai, an Argentine sales assistance startup, secures $300,000 from 500 Global to expand into Mexico and Colombia. With over 300 users, the company aims to grow fivefold within the next year.

🇦🇷 Ualabee, an urban mobility startup, raises $125,000 from accelerator Magical to expand operations in Chile and enter the Peruvian market. With over 3.7 million users, Ualabee aims to improve urban life and plans to reach 15 Latin American cities by 2025.

🇧🇷 Katalista, a platform helping professionals build personal brands on LinkedIn, raised $95,000 from WOW Accelerator and announced changes to its founding team. Since its founding in 2021, the startup has raised over $260,000 to expand its market presence and enhance its product.

🇧🇷 Mercado de Recebíveis, a fintech serving small and medium-sized businesses, raised funds to boost its valuation from $12.2 million to $19.1 million. The round will support product development, user experience improvements, and team expansion, with a goal of reaching $174 million in total payment volume by 2025.

M&A transactions 🎊

🇧🇷 Globo acquired an additional 47.1% of Eletromidia, increasing its ownership to 74.1%, in a deal valued at $296.5 million. This acquisition, which resulted in a 43% rise in Eletromidia's stock price, supports Globo’s strategy to expand in the out-of-home (OOH) media market.

🇧🇷 Vinci Partners acquired 67% of Outback Brasil’s Brazilian operations, including Abbraccio and Aussie, for $243.2 million, in a deal valuing the operation at $357.5 million. This acquisition will support Vinci Partners in expanding these brands in Brazil, working with the current management to boost Outback Steakhouse’s performance.

🇧🇷 Gerdau (GGBR4) completed the acquisition of Dales Recycling Partnership, a scrap operation and recycling specialist, through its North American subsidiary, Gerdau Ameristeel US Inc., for approximately $60 million. This acquisition aims to boost Gerdau’s ferrous scrap supply to enhance cost competitiveness in raw materials.

🇧🇷 Totvs announced its second acquisition of 2024, purchasing VarejOnline for $8.5 million as part of its M&A growth strategy. CEO Dennis Herszkowicz emphasized VarejOnline's strategic fit within Totvs’ portfolio and noted ongoing interest in acquiring Linx, citing potential synergies. Totvs is also focusing on improving its ERP Banking solutions to streamline business financial management.

🇧🇷 KPTL completed three startup exits in just 40 days, including the sale of Augen and a share repurchase by Akmey's founding family. Despite a sluggish M&A market, KPTL's early-stage investments have shown strong returns, with the CEO highlighting the value of capitalizing on opportunities amid lower transaction valuations.

🇧🇷 Atlas Governance, a corporate governance tech startup, acquired Precisão-I to accelerate its entry into digital assembly management. This acquisition expands Atlas's client base to include major companies like Petrobras and Vale, supporting its plans to grow in Latin America and other international markets.

Investor & accelerator news 🚀

🇧🇷 Yards Capital launched Brazil's first ESG-focused infrastructure debenture fund, targeting $34.88 million from professional investors. The fund will invest in infrastructure projects via incentivized debentures, prioritizing ESG criteria to attract capital from pension funds and wealth managers.

🇦🇷 Bolsa de Comercio de Rosario (BCR) and Banco Interamericano de Desarrollo (BID) signed an agreement to invest $1.8 million to strengthen the agribiotech startup ecosystem in Santa Fe. BCR will open a call for innovative startups to join its network, aiming to boost investor participation and support tech solutions in the agroindustry.

🇧🇷 The fourth edition of Sebrae Startups' INOVA Program is open for applications until November 11, offering up to $131,000 per startup along with a training track for participants.

🇦🇷 The Ventures Argentina initiative supports Latin American startups by connecting them with leading investors and experts to drive growth and global expansion. Open to early-stage startups across industries, selection is based on business models and potential global impact. The awards ceremony, celebrating achievements in multiple categories, is set for November 15.

🇵🇷 The 18th Dimension Fest by Parallel18, scheduled for November 19 in Puerto Rico, will bring together entrepreneurs, investors, and mentors to showcase the island's entrepreneurial potential. The event will feature presentations, educational content, networking opportunities, and a summit where alumni will pitch their startups to international investors.

🌎 Pygma launched the sixth edition of its fintech accelerator, "PY6: The Future of Fintech," to select 15 pre-seed or early seed fintech startups from Latin America and beyond. The 10-week program provides mentorship, expert sessions, and investor connections, ending with a Demo Week for top participants. Applications are free and open until December 6, 2024.

🇧🇷 The Next.vc Conference, organized by Investidores.vc, will take place in São Paulo on December 6, bringing together investment leaders and founders to discuss Brazil's economic outlook and future of venture capital. The event will feature prominent speakers, strategic insights, and high-level networking.

🇧🇷 Futurum Capital launched a new venture capital fund for qualified investors, requiring a minimum of $174,000 in investments. The fund targets early-stage startups in deep tech and life sciences, with plans to expand to Portugal. Co-CEO Eduardo Zaidan highlights its mission to broaden access to venture capital.

🇨🇱 Chilean fintech Holdo launched the "Chile Smart Fund", the country’s first AI-managed mutual fund focused on IPSA stocks. With a minimum investment of $515, it removes human bias by using AI to optimize portfolios. Developed with Toesca, it offers a data-driven investment option.

Startup news 💡

🇲🇽 Amazon has partnered with Mexican online supermarket startup Jüsto to enhance delivery services in Mexico. The collaboration aims to optimize logistics and provide customers with a faster, more efficient shopping experience.

🇨🇱 Miss Berni launches Edbinder, a Chilean platform connecting Latino educators with schools in the U.S. and Latin America to streamline hiring. With a network of over 17,000 teachers, Edbinder uses technology to ensure cultural fit and is developing an AI-driven tool, Finder, to enhance recruitment.

🇲🇽 Cuenta Nu expanded its deposit network through a partnership with Financiera para el Bienestar, enabling customers to deposit and soon withdraw cash at 1,700 FINABIEN branches across Mexico. This move promotes financial inclusion, especially for cash-dependent users in urban and rural areas, reinforcing Nu’s commitment to accessible financial services.

🇲🇽 Mexican fintech Klar aims to reach $500 million in revenue as it targets an initial public offering (IPO) by late 2026, according to VP of Finance Juan Salcedo. Despite a challenging IPO landscape in Latin America, Klar remains optimistic, expecting favorable signals from the upcoming political administration as it expands its user base and strengthens financial metrics.

🇧🇷 Brazilian company Meta is forming a joint venture with Toronto-based startup DataH to develop AI solutions for global clients. Meta will hold a 51% stake in the new entity, MetaDataH, aiming to generate $26 million in revenue over the next three years by serving the AI market in North America and Brazil.

🇨🇴 Colombian startup Carryt announced its expansion into Portugal with an $11 million investment. This move aims to strengthen its presence in the European market and bring its innovative services to a broader audience.

Big company & policy news 💡

🇦🇷 Mercado Libre’s stock dropped 17% on the NYSE following its Q3 earnings report, which showed $5.3 billion in net revenue—a 35% year-over-year increase—but missed EPS estimates. Originally an e-commerce platform, Mercado Libre has expanded into financial services, including Mercado Pago, and benefits from tax exemptions in Argentina.

🇦🇷🇲🇽 Banco CMF, in partnership with fintech Mendel, launched a new corporate credit card aimed at optimizing financial management for organizations. The card enables companies to assign cards to employees and gain better expense control through Mendel’s tech platform, enhancing financial administration and improving employee purchasing experiences.

🇧🇷 SP Negócios partnered with Polkadot to offer free blockchain programming training for companies in São Paulo, Brazil. This initiative supports innovation in the crypto economy, strengthening São Paulo’s role as a tech hub. The program is open to all companies in the region, with no prior qualifications needed.

🇦🇷 Carrefour announced a $300 million investment in Argentina, expected to create 2,500 jobs by late 2025 and early 2026. This plan includes opening 27 Maxi and 60 Express stores, demonstrating the company’s confidence in the Argentine market despite a decline in sector sales.

Interesting reads 💡

🌎 In October, Latin American startups set a record in Series C funding, raising $765 million across 61 deals—a 69% increase over the same month in 2023. Brazil led with two-thirds of the funding, driven largely by fintechs, and the growth trend is expected to continue despite a reduction in the number of rounds.