LatAm ICT financing, investment watch

Despite the overall weak year for financing of later-stage startups and a wave of layoffs, venture funding remained readily available for some sectors in Latin America during 2022.

Overall, the region saw 1,251 funding rounds, comprising US$12bn in investment volume with an average of US$12.4mn per round, SlingHub platform said in its 2022 report. In 2021, regional startups had raised a record US$18.4bn. The investment volume in 2022 was down 34% year-over for Latin America and 50% for Brazilian startups.

“With higher interest rates and inflation levels impacting liquidity, the result was more constrained valuations, longer and harder due diligence processes, fewer unicorns, and an overall feeling of caution,” said the report.

Healthtechs and agtechs were the highlights and the segments with most funding rounds. Among other findings, Mexico and Argentina followed Brazil in M&A transactions involving regional startups. The region also saw the emergence of 10 unicorns.

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Payments company Edenred Brasil joined the global Sugar Program, which connects corporates with students from 24 universities on four continents to tackle business challenges.

Through the program, eight engineering students will receive mentoring from Edenred to develop ideas for Ticket Log, its fleet management system. 

Edenred is partnering with Universidade Federal de São Paulo and France’s L’École des Ponts ParisTech.

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Payment startup Yuno plans to attract 100 customers in Latin America this year and over US$1bn in transaction volume processed.

Created by Colombia’s Rappi co-founder Juan Pablo Ortega and former Rappi executive Julián Núñez, the company is focused on Colombia, Mexico and Brazil. 

In March last year Yuno raised US$10mn in its first VC round.

That round was led by Andreessen Horowitz, a Silicon Valley-based VC firm, Kaszek, one of the main early-stage risk capital funds in Latin America, and co-led by Monashees, with the participation of Nazca, Latitud, OneVC, Opera Ventures, Saurabh Gupta (DST Global partner) and angel investors.

Yuno manages different payment methods on a single platform. Among its current customers are McDonald's, Rappi, Tembici and Privacy.

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Brazilian fintech Niky raised 40mn reais (US$7.85mn) in a round led by PJM Investimentos to expand its business and launch new services, namely credit lines for medical procedures and wage anticipation.

The fintech, launched in 2021, estimates to have processed1.2bn reais in 2022, up 282% year-on-year. 

Niky offers payment solutions in the banking-as-a-service model, in addition to operating benefits for company employees and individual workers.

The company claims to have 40 customers in the country.

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SPIC Brasil, deemed one of the country’s largest private power generators, opened a call for its R&D program.

The program aims to attract companies with solutions focused on operational efficiency for the company’s São Simão hydroelectric plant.

Startups, tech-based companies, research centers and universities can participate. SPIC Brasil aims to select four projects to be developed under the themes of operation, modernization and heritage.

It will invest 6mn reais overall. Resources are applied following guidelines of power regulator Aneel‘s research and technological development program. More details are available here.