SoftBank

didn’t let up the circulate of capital to Brazil this month, staying busy regardless of the WeWork debacle. With two extra $100 million-plus rounds in QuintoAndar and MadeiraMadeira, the Japanese investor has funded a minimum of yet another unicorn within the Brazilian ecosystem. Their investments in Brazil from the previous two months alone far outstrip Latin America’s enterprise capital funding in all of 2016.

In early September, SoftBank backed QuintoAndar for a $250 million Collection D spherical alongside Dragoneer, Common Atlantic and Kaszek Ventures, which just lately made headlines for elevating $600 million to put money into Latin America. QuintoAndar is an actual property rental startup that simplifies the method of finding and renting an condominium in Brazil. Though the startup solely has 2% of the leases market share in Brazil, QuintoAndar’s tech resolution enabled them to scale quickly, beating out conventional incumbents within the area’s bureaucratic rental construction.

QuintoAndar’s founders ideated the enterprise mannequin whereas they had been struggling to search out an condominium in São Paulo after ending their MBAs at Stanford. They’ve seen property leases develop 5x on their platform since elevating a $70 million Collection C simply 9 months in the past.

SoftBank stayed bullish in Brazil with a $110 million funding in house items market Madeira Madeira, which has been described because the “Wayfair of Brazil.” This drop-shipping enterprise has grown to promote hundreds of merchandise on-line with a comparatively capital-light mannequin that connects patrons straight with warehouses, saving on overhead prices. The SoftBank funding dwarfs all of Madeira Madeira’s earlier capital raised — $38.eight million — by nearly an element of three.

Madeira Madeira plans to make use of the capital to increase throughout Latin America, in addition to enhance logistics and customer support.

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David Arana, Konfio founder and CEO

Mexico’s Konfio receives $250 million credit score line from Goldman Sachs, Victory Park Capital

Konfio supplies unsecured loans to small and medium companies in Mexico which are at present underserved by the standard banking sector. Goldman Sachs contributed as much as $100 million in secured credit score to Konfio to permit them to make as much as $250 million in loans to 25,000 corporations over the subsequent 12 months. Victory Park Capital additionally contributed to this debt spherical, bringing Konfio’s whole raised to $43 million in fairness and $260 million in debt.

This capital mints Konfio as one of many largest fintech startups within the area. It’s going to additionally enable them to tackle bigger mortgage sizes. Konfio’s common mortgage dimension hovers round $20,000. Konfio makes use of credit score scores to calculate threat and disburse loans inside 24 hours, and at half the speed of a conventional financial institution mortgage.

So far Konfio has served over 1 million shoppers in what’s at present a $100 billion market in Mexico. Mexico’s entry to credit score remains to be considerably decrease than the remainder of Latin America, so Konfio is well-placed to develop inside this market, particularly with this new funding.

Klar, Mexico’s latest challenger financial institution, raises $57.5 million from U.S. buyers

Mexican challenger financial institution Klar, a Chime clone, just lately raised over $57.5 million in debt and fairness in one in all Mexico’s largest seed rounds. The $50 million credit score line got here from San Francisco’s Arc Labs, whereas Quona Capital led the $7.5 million fairness spherical with help from Santander InnoVentures, aCrew Capital, FJ Labs and Western Know-how Funding.

Klar was based lower than 10 months in the past to assist Mexicans entry free and honest monetary companies by means of digital banking. Presently Klar affords a debit and a credit score product with clear charges; in the present day, solely 15% of Mexicans have entry to bank cards, most of which have +60% rates of interest and plenty of hidden charges. Klar desires to make banking accessible for everybody in Mexico by means of their free digital platform.

This startup can be one to observe over the approaching months because it competes with Nubank and different native neobanks to financial institution Mexico’s unbanked.

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U.S. and Mexican buyers again Flat, an Opendoor clone in Mexico

Mexican property-tech startup Flat is taking the Opendoor mannequin to Latin America. This startup raised an unprecedented $4.6 million of their pre-seed spherical led by ALL VP, with help from Liquid2 Ventures, Subsequent Billion, Picus Capital and angels.

Moreover Mexican e-scooter big, Grin, Flat’s pre-seed is the most important ever for Mexico. Flat’s founders, Victor Noguera and Bernardo Cordero, are betting on a $25 billion house gross sales market in Mexico that’s at present caught within the 20th century. Flat will enable householders and patrons to achieve entry to correct details about house costs (assume Zillow within the U.S.), in addition to managing the sluggish strategy of notarizing the acquisition after the actual fact. With Flat, the startup manages every little thing from valuation to possession switch, all by means of their platform, and inside 72 hours of buy.

Flat will use this funding to vertically combine inside the Mexican market, quite than increasing throughout Latin America.

Information and notes: Mexican fintechs in focus, extra VC funds opening in LatAm

  • Different offers in September included Mutuo Financiera’s $100 million credit score facility granted by Crayhill Capital Administration, a New York-based different asset administration agency, originally of the month. Mutuo Financiera is a automobile fleet leasing firm that focuses on clear vitality transportation. The funding will assist the startup purchase new compressed pure fuel autos to serve elevated demand in Mexico for clear transportation alternate options.
  • Brazilian growth-stage VC fund Base Companions closed an additional $135 million to put money into scaling Latin American startups. The fund, based by Fernando Spnola and Arthur Mizne and backed by over 43 restricted companions, has beforehand invested in corporations like ByteDance and Stripe, just lately topped the U.S.’ third most useful startup. Base Companions will now compete towards funding giants like Kaszek and SoftBank to take part in Latin America’s high enlargement stage offers.
  • Mexico’s Credijusto, which affords asset-backed loans and tools leases to SMEs, raised their Collection B this month, topping $42 million led by Goldman Sachs and Level72 Ventures. Credijusto has processed greater than $90 million in loans since they had been based in 2015 and closed a $100 million credit score settlement with Goldman Sachs simply months earlier than this spherical.
  • Looking forward to October, SoftBank is claimed to be evaluating a number of investments in Brazil and can doubtless proceed deploying capital quickly in Latin America’s largest market. We might even see just a few extra unicorns in Brazil earlier than the yr is out. It is usually doubtless that the Innovation Fund will make its means out of Brazil to different large markets like Colombia or Mexico, the place SoftBank has invested previously.
  • Accion Enterprise Lab launched a social impression fund and Ewa Capital started elevating capital for a female-focused fund in September, so hopefully funding in feminine founders and inclusive tech will rise in coming months.
  • Mexico’s Sq. clone, Billpocket, additionally just lately introduced an undisclosed spherical from Axon Capital Companions. Billpocket has been accelerating e-payments in Mexico at a triple-digit tempo because it began, carving out a reputation for itself in a aggressive area the place incumbent Clip has already obtained funding from SoftBank.



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