"Deserve your dream.” - Octavio Paz
January 25, End Of Day
Preauth: Based in Lima, Peru, Preauth is player in the Fintech sector, focusing on B2B2C services. The company's innovative approach is building a collateral for everything, which is not only reducing the risk of credit payment defaults but also allowing the pre-authorization of various digital assets as collateral. Preauth has already made significant advancements in the market, boasting over 100 B2B clients across 5 countries. They have successfully processed 35k pre-authorized transactions and manage 5M guarantees. A notable achievement is their technology's 95% confidence rate, demonstrating the effectiveness and reliability of their solutions. Dive deeper into the case here.
Mobi: Mobi is transforming the landscape of last-mile delivery. This innovative company has reached a significant milestone by achieving break-even in November 2022. Mobi stands out with its moped subscription model, featuring solar-powered swappable battery stations. Mobi's impressive seed round funding of $1.38 million, off a $5 million valuation, marks the largest ever for a startup in Bolivia. Their collaboration with PedidosYa, a leading delivery service in Latin America, underline their commitment to technological advancement and improved delivery times. Dive deeper into the case here.
Kigui: Kigui, is at the forefront of combating food waste. Kigui made significant strides, including market expansion to Mexico and achieving over 5k monthly active users with operations in two countries. Kigui's impact is substantial, having reduced 460k tons of CO2 emissions, saved 440k products from being wasted, and conserved 174.6M liters of water in 2022 alone. They incentivize consumers to purchase products close to their best buy date in supermarkets, effectively reducing food waste and contributing to environmental sustainability. Their unique business model includes a 10% commission on net sales generated for Consumer Packaged Goods (CPGs) and retailers, along with selling valuable consumer behavior data obtained from purchase receipts. Dive deeper into the case here.
Dive deeper into other fundraising firms in LatAm here.
Remittances market would be LatAm’s 7th biggest economy. A recent report by IDB highlights several key trends in remittances, and their meaning for the tech ecosystem. Here are the key takeaways:
1. Increased Remittance Flows: The year 2023 witnessed a significant rise in remittances to Latin America and the Caribbean. This trend highlights the growing importance of these funds in the regional economies, contributing to financial stability and development.
2. Economic and Social Impact: Remittances have a profound impact on the economies and families of recipient countries. They contribute to poverty alleviation, improved living standards, and offer opportunities for investments in education and healthcare.
3. Future Outlook and Trends: The report offers insights into future trends in remittance flows, taking into account global economic conditions, migration policies, and technological advancements in financial transfers.
Guyana: The Guyanese government is embarking on selling millions of carbon credits linked to forest conservation, aiming to generate significant revenue while facing the challenge of Venezuela's territorial claims. This venture is set to test investor confidence in a largely unregulated global carbon credit market. Most of Guyana's forest, key to the carbon credits, is located in the Essequibo region, a target for Venezuelan ambitions. The initiative, though promising economically, raises concerns about the effectiveness and regulation of carbon credit markets, as well as geopolitical tensions with Venezuela.
Argentina: In his debut address at the World Economic Forum in Davos, Argentina's President Javier Milei warned of the West being in danger due to a shift towards socialism. Milei, an ardent libertarian, criticized international organizations for adopting collectivist and radical ideologies, claiming they lead to poverty. His speech was well-received by some attendees, including a European buyout firm head and JPMorgan's president. Milei's administration has already made bold economic moves, including a significant devaluation of the peso and seeking IMF support. IMF's deputy managing director praised Milei's initiatives, but concerns remain about his ability to implement reforms and navigate the challenges of high poverty and opposition from labor unions.
Chile: In Chile, the lower house of Congress has provisionally approved a reform of the private pension system, a key initiative of President Gabriel Boric. This reform aims to address issues like low retirement incomes under the current system, where workers contribute to individual accounts managed by private funds. The bill's final form is pending, as the Senate will review it after a February recess. While President Boric's coalition is in the minority, this step keeps pension reform prospects open, potentially leading to a significant policy shift in the country's approach to retirement savings.
Check our recently published insights here, to read more about latam’s tech ecosystem.
Recent posts:
Insurtech in Latin America: Claiming the Future
Latin America exhibits a lower insurance penetration compared to other regions. For instance, less than 15% of the population has life insurance, and less than 25% of vehicle fleets are insured. This low penetration presents a significant opportunity for growth in the insurtech sector.
🔍 Read the rest of the analysis here.
SportTech in Latin America: New Accelarations
Factors affecting the market potential of SportTech in LatAm:
Regional Economic Dynamics: The economic growth and stability of Latin American countries are crucial. Regions with robust economies tend to have more disposable income for leisure activities like sports, directly impacting the demand for SportTech solutions.
Cultural Passion for Sports: In Latin America, where sports like football are deeply ingrained in the culture, there's a natural inclination towards adopting SportTech innovations that enhance the sports experience.
International and Regional Sports Events: Hosting international sports events can act as a catalyst for technology adoption in sports. Latin America's participation in and hosting of such events can drive technological advancements in the sector.
Changing Consumer Behaviors: Trends such as increased focus on health and fitness, the rising popularity of esports, and demand for immersive sports experiences influence SportTech adoption in Latin America.
🔍 Read the rest of the analysis here.
Legal Tech in Latin America: Redefining the Legal Landscape
Key Developments:
🔍 Read the rest of the analysis here.
