Sector roundup: LatAm dealmaking, Brazil cyber acquisition, El Salvador insurtech round

Dealmaking fell 14% by volume and 16% by disclosed value across Latin America in February 2024 compared with the same period 2023, according to a monthly M&A report by TTR Data.

Among the top six M&A markets regionally, Brazil led the region by deal volume and aggregate value, said TTR. Based on deal volume, Colombia and Mexico took second place, followed by Chile, Peru and Argentina.

However, based on aggregate value, Argentina took fifth place and Peru, sixth.

Brazil in particular reported total aggregated value of US$24.7bn in the first two months of the year, up 17.7%.

Internet, software and IT services continue at the top, with 65 deals in the two months. According to TTR, the US invested the most in Brazil, with 23 acquisitions.

STEFANINI ACQUISITION

Brazilian IT company Stefanini acquired São Paulo’s Protega Managed Cybersecurity for an undisclosed amount to bolster its presence in this segment.

The Brazilian multinational, which aims to invest 1bn reais (US$200mn) by 2026 in AI, security and M&As, is targeting extra revenues of 200mn reais for its cybersecurity line of business with Protega’s takeover.

Protega is based in Campinas, São Paulo state, and reports around 300 clients in the portfolio, among them banks, insurers and retailers.

STARTUP SERIES A

Brazilian Foodtech Nuu raised further 1.2mn reais in a follow-on of its 20mn-real series A round to reinforce cash and expand points of presence.

The extra resources came from the groups of angel investors FDC Angels and Investidores.vc.

DATA INTELLIGENCE DEAL

Data Stone, a platform that provides corporate data intelligence, acquired startup Sales Rush, which provides solutions focused on the advertising market.

Values were not disclosed.

With the acquisition, Sales Rush will become a specialized vertical within Data Stone focused on the ads and creation segment, the latter said in a statement.

Data Stone reports over 4mn active decision-making professionals registered to use its platform.

TIM UPLOAD VENTURES

The round led by TIM’s Upload Ventures for California-based retail media startup Topsort, founded by Chilean entrepreneur Francisco Larraín, was worth US$20mn according to Chilean newspaper Diario Financiero.

The round was announced last month as TIM's first under the Upload Ventures initiative.

With the new funds, the total collected by Topsort surpasses US$28.6mn.

PULSAR FUNDING

US-based manufacturing IoT and analytics platform Pulsar, which serves factories in the US and Mexico, raised US$8mn in a round led by Cometa fund.

Other participants included Seaya Cathay Latam, Arca Ventures and Kayyak Ventures, the latter of which entered with a follow-on to its previous round.

Among Pulsar’s clients are giants such as cement company Cemex and Femsa. 

The company operates in a segment that has increasingly drawn the interest of early-stage firms and specialty funds. While eventually targeting different sector niches, rising players in the Latin American IoT scene include Tractian, Constanta and Altave.

INSURTECH ROUND

El Salvador-based insurtech Sostengo collected US$3.8mn from private investors in a seed round led by PeopleFund.

“This funding round will allow us to continue growing in Central America and introduce our solution to US Hispanics, with key investors and industry experts by our side,” CEO Estuardo Escobar was quoted by Latamfintech as saying.

The 2021-launched startup also operates in Guatemala.

The company is focused on policies for cars, motorcycles and app delivery workers and aims to use the funds to expand operations and enhance platforms.

CLAROTY EYEING LATIN AMERICA

Israeli cyber-physical systems protection company Claroty raised US$100mn to strengthen its presence in emerging markets, including Latin America.

New York-headquartered Claroty raised US$635mn in investments to date. 

The round was led by Delta-v Capital, together with AB Private Credit Investors of AllianceBernstein, Standard Investments, Toshiba Digital Solutions, SE Ventures, Rockwell Automation and Silicon Valley Bank.

The company said that the new investment cycle “further solidifies its leadership position in the critical infrastructure cybersecurity market.”