Welcome to the 6th 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 💸

🇧🇷 Eve, an Embraer subsidiary, secures $50M from Citibank to accelerate development of its electric vertical takeoff and landing (eVTOL) aircraft, set for operation by 2026. This funding boosts Eve’s liquidity to approximately $480M, underscoring investor confidence in its strategic plan.

🇲🇽 Fairplay, a Mexican financial institution, secures a $33M loan from BBVA to support SMEs in Latin America’s retail sector. The funding will aid small and medium-sized businesses through a dedicated trust controlled by Fairplay.

🇲🇽 Mexican fintech Bravo secures $27M from BBVA Spark to expand its growth and credit division. Bravo specializes in debt repair and financial advisory, helping over 450,000 clients manage debts totaling around €965M since 2009.

🇬🇹 Osigu, an AI-driven healthcare revenue cycle platform for Latin America and the Caribbean, raises $25M led by IDC Ventures, with Visa as a strategic investor. The funding will enhance real-time payment solutions to streamline healthcare transactions and tackle inefficiencies in the region's healthcare payment systems.

🇨🇴 AgriCapital secures $7.4M to expand financial access in Colombia's agricultural sector. Led by Alive Ventures, the round will help AgriCapital use tech and data to provide tailored solutions for rural producers facing credit challenges.

🇧🇷 Brazilian fintech CredAluga raises $3.7M in a round led by Caravela Capital to expand its rental property financial solutions. Founded in 2022, CredAluga partners with real estate agencies to streamline rentals without guarantors, aiming for $60M in revenue and 15% market share by 2029.

🇧🇷 São Paulo-based pension startup Stay raises $3M in seed funding led by Better Tomorrow Ventures and MAYA Capital. The investment will support team growth and scaling of its digital platform, which provides customizable pension plans via WhatsApp to help companies retain talent.

🇺🇾 Uruguayan startup Neuratek raises $500K to expand its AI-driven workflow automation platform for the financial industry. With plans to enter Chile, Argentina, and Mexico, Neuratek aims to strengthen its local presence before taking its Maverick platform global.

🇨🇴 Colombian startup Mavity secures $250K from Morgan Stanley's Inclusive Ventures to expand into new markets. Mavity’s Design-as-a-Service platform uses AI to streamline creative services for startups and SMEs. With $2M raised to date, Mavity operates in Colombia, the U.S., Europe, and LATAM, expecting to close 2024 with an ARR of $1.2M.

🇧🇷 DNA Financeiro raises $204K through crowdfunding on EqSeed to expand its AI-powered accounting platform for SMEs. With this funding, the Sorocaba-based fintech aims to triple its customer base by the end of next year and enhance its AI assistant, Mirela, to further automate financial processes.

M&A transactions 🎊

🇧🇷 BRF Arabia acquires a 26% stake in Saudi Arabia's Addoha Poultry Company for $84.3M to strengthen its role in local chicken production and support Saudi food security. The investment strengthens BRF’s position in the halal market, focusing on quality, efficiency, and sustainability.

🇧🇷 SmartFit completes acquisition of Grupo Velocity for $27.8M to strengthen its position in Brazil’s fitness market. The deal includes 100% of Velocity’s shares, with potential additional payments of up to $3.4M over the coming years.

🇵🇪 EIG’s MidOcean Energy acquires an additional 15% stake in Peru LNG from Hunt Oil Company, increasing its total interest in PLNG to 35%. This acquisition strengthens EIG’s investment in the LNG sector as part of its energy infrastructure strategy.

🇧🇷 Crescera Capital acquires Segware to expand its electronic security software ecosystem in Brazil and Latin America. New CEO Renato Martins will lead Segware’s continued focus on B2B innovation and client growth.

🇨🇴 Ashmore Colombia acquires a majority stake in Liceo Pino Verde, a leading K-12 school in Pereira. The investment strengthens Ashmore’s role in Colombian education, supporting quality development through its Legacy Schools initiative. Liceo Pino Verde serves over 1,400 students with an internationally recognized curriculum.

🇧🇷 Funcional Health Tech acquires BeFlex to expand its corporate benefits platform, aiming for three million users by 2025. With new features like Multi CashCare and RH Analytics, the company projects 20% growth and $170.3M USD in transactions next year, strengthening its leadership in health and wellness benefits.

🇧🇷 Afinz acquires Tappaggo, a mobile payment solution enabling card, PIX, and QR Code transactions, to expand its financial services ecosystem. This acquisition provides an alternative to major banks, tapping into Brazil's growing demand for proximity payments.

Investor & accelerator news 🚀

🇲🇽 Industrial Gate, created by TC Latin America Partners, forms a joint venture with a global investor to develop Class A industrial properties in Mexico with a $450M investment. The project targets 21 million square feet of industrial space, driven by nearshoring demand and a focus on sustainable, efficient operations.

🇧🇷 Brazilian asset manager Vinci raises $340M for a climate-focused infrastructure fund, attracting investment from major European and Asian banks. The $340M fund aims to drive sustainable infrastructure projects without "reinventing the wheel."

🌎 Endeavor Catalyst has invested over $150M in Latin American startups over the past decade, backing resilient entrepreneurs despite regional challenges. The fund focuses on rigorous selection and supports international expansion, emphasizing the need for validated business ideas to unlock growth potential.

🇧🇷 Across Capital launches a $134M fund to invest in tech companies across Latin America and the U.S., focusing on software-driven businesses with strong revenue models. Backed by major family offices and institutions, the fund provides $5M-$25M investments and supports portfolio growth with strategic connections and industry expertise.

🌎 Borderless Capital launches a $50M fund to drive Web3 innovation in Latin America, focusing on blockchain solutions for regional challenges. The fund, joined by Matias A. from the Avalanche Foundation, highlights cautious investment to address both opportunities and risks in blockchain adoption.

🇲🇽 Wayra, Telefónica Movistar's open innovation arm, has invested $4.2M in Mexican startups since 2011, contributing to over $20M invested across Latin America. A quarter of Wayra’s active startups in the region are Mexican, generating significant revenue through collaborations with Telefónica.

🇧🇷 55% of Brazilian VCs are actively investing in ESG-focused startups, prioritizing sustainable solutions to address environmental challenges. Top criteria include unique value propositions, strong founding teams, and transparent communication. However, concerns remain about AI overuse without clear differentiation among startups.

🌎 The rise of digital nomads in Latin America, especially in Mexico, is fueling eSIM market growth as travelers seek easy connectivity without traditional SIM cards. While challenges like device compatibility persist, the eSIM market is set for significant expansion in the coming years.

🇵🇪 The Peru Venture Capital Conference 2024 on November 6 will connect investors, leaders, and entrepreneurs to boost startup investment and collaboration. Now in its ninth year, the event includes keynotes, panels, and a Pitch Competition.

Startup news 💡

🇨🇴 Salva Health, a Colombian startup, has won TechCrunch's Startup Battlefield 2024 with its AI-powered wearable, “Soy Julieta,” for breast cancer risk assessment. The victory and $100K prize highlight Latin America’s growing influence in healthtech innovation.

🇧🇷 Nubank launches NuCel, its mobile carrier service, offering flexible, no-commitment data plans. The service will roll out gradually, initially for eSIM-compatible devices, and includes perks from the Nubank ecosystem.

🇵🇪 Kushki and J.P. Morgan Payments partner to expand payment solutions in Latin America, aiming to strengthen infrastructure for businesses and consumers. This collaboration combines Kushki’s tech expertise with J.P. Morgan’s financial services to drive innovation in the region.

🇨🇴 DRUO, a Colombian fintech, has processed over $100M in international transactions since launching in April 2022. Known for its streamlined payment collection service, DRUO aims to triple or quadruple its transaction volume by the end of 2024 and expand into new markets.

🇦🇷 Salvaje, a luxury Argentine beef brand founded by Héctor Gatto, Kevin Chochlac, and Juan Ignacio Barcos, is in its seed round to raise $2M. The funds will support global expansion and branding efforts to position Argentine beef as a premium, gourmet product.

🇨🇴 Plataform, a Colombian fintech, has financed over $800M for 1,740 companies since 2022 through invoice discounting. With services like factoring and crowdfactoring via Mesfix, Plataform aims to reach $1 billion in annual funding to support business liquidity.

Big company & policy news 💡

🇦🇷 Mercado Libre opens two new distribution centers in Hidalgo and Estado de México with a $300M investment, creating thousands of jobs. Equipped with advanced technology, these centers will handle up to 400,000 shipments daily, strengthening Mercado Libre’s logistics network and e-commerce growth in Mexico.

🇧🇷 Azul raises $500M in new debt to strengthen its financial structure, with $150M available immediately. Despite this funding boost, Azul’s stock has fallen 7.2% over the past 20 days, highlighting ongoing short-term debt challenges.

🇧🇷 V.tal, a Brazilian fiber company, launches Tecto, a new data center subsidiary, with the Mega Lobster facility in Fortaleza and a planned site in São Paulo. With an investment of $93.7M USD, Tecto is part of V.tal's $1 billion plan to expand its data center presence in Brazil.

🇧🇷 Brazil advances crypto regulation and develops its CBDC, DREX, with robust support from 16 consortia. Leveraging blockchain, Brazil's regulatory push and the popular PIX system are driving digital payment innovation.

Interesting reads 💡

🇨🇱 Cristóbal Valenzuela, CEO of Runway, claims the era of AI companies is over, viewing AI as universal infrastructure like electricity or the internet. He emphasizes that Runway is now focused on media and entertainment, with true innovation stemming from how AI fosters new expressions and storytelling. Valenzuela believes the future lies with those who creatively use these tools to craft meaningful experiences.