Fintech iInvestment LATAM 2019

BY
February2020
www.finnovating.com/reports/
FinTech Investment
Latam 2019

Finnovating®
FinTech Open Innovation Platform that enables the global collaboration
between startups, corporates & investors.

Finnovating Copyright 2020
CEO Letter
Rodrigo García de la Cruz
CEO of Finnovating
Finnovating has been analysing and generating FinTech ecosystems for over 5 years. Our goal is to create the largest FinTech Platform
connecting 50.000 startups and corporates in the same place. We are proud to be a pioneer once again with the first FinTech investment
report in Latin America.
During 2019 we have brought together more than 500 CEOs and founders of startups and scaleups in the region in our renowned private
meetings called Unconferences. This initiative has allowed us to get to know these companies in depth and detect the great opportunities that
the region presents, highlighting the variety of sustainable FinTech with a great impact on the financial inclusion of society.
Investment in FinTech companies within the region presents a growth of more than 180% in 2019, in addition to an important growth in the
number of companies, situation reflected in the different maps made by Finnovating.
For this reason, our Intelligence team has developed this report on the state of FinTech investment in Latin America, aiming to highlight the
great investment opportunities that exist in the region. As an example, we have selected 8 companies to watch during 2020. These FinTech
are in different stages of growth and investment, all of them providing an important growth potential for their market, growth status and
vertical activity.
As a summary, we could say that 2019 has been the year of Brazil but we expect a very positive year 2020 in terms of investment, especially
for countries like Mexico, Colombia, Argentina, Chile or Peru. We hope that this report will help to encourage investment in Latin America, to
have more visibility for FinTech and that together we will form a unique ecosystem at the global level. Finnovating remains at your disposal to
work towards this goal.
"If you want to go fast, go alone, but if you want to go far, go together"

1. Situation in Latam
Brief Review of the sector (4)
Evolution of investment in FinTech companies (5)
Top 10 rounds (6)
Ranking of Latam countries (7)
Top rounds per country (8)
Percentages of rounds per range (9)
Investment per FinTech Vertical (10 & 11)
2. Most active VCs
Most active VCs (13)
Financial institutions (CVC) (14)
3. FinTech to watch 2020 (15)
4. Main countries Analysis
FinTech investment status:
Brazil (26)
Mexico (28)
Argentina (30)
Colombia (32)
Chile (34)
Peru (36)
Table of Contents
Index

1.
Situation in Latam 2019

| FinTech Investment Latam 2019 | Situation in Latam > 4
Latin American FinTech raised a total of US$2.66 B (US$1.92 B in equity and US$0.74 B in debt) in 94 deals in 2019.
Of the 94 rounds, 14 were undisclosed.
Only investments in FinTech and
InsurTech companies are
considered. Investments in
PropTech companies such as Quinto
andar (US$ 250 M) or Loft (US$ 70
M) are not included.

July was the month with the highest
investment volume, although
September was the month with the
highest number of rounds (12).

Of the 82 investment rounds in
FinTech companies in Latam in
2019, the top 10 represent about
77% of the total investment.

FinTech's investment in Latin
America is highly concentrated,
Brazil and Mexico accounting for
over 90% by 2019.

Top rounds per country
(Investment in Latam 2019)
Argentina
Mexico
Brazil
Chile
The countries with the largest investments in FinTech
are Brazil, Mexico and Argentina These three
countries accumulate 98% of the total investment.
Source: Finnovating
Peru
Colombia
$400 m
$150 m
$3 m
$12,5 m
$100 m
$1 m

More than 50% of the rounds have an
investment ticket of less than 10
million dollars.
Finnovating Copyright 2020www.finnovating.com/reports/

90% of the total investment was
concentrated in three verticals,
Neo & Challenger Banks, lending and
payments.

60% of the investment (deals) was
concentrated in three verticals,
lending, payments and Neo &
Challenger Banks.

2.
Most active VCs 2019

Nine funds participated in more than
one round during 2019, one of them
participated in 6 (Y Combinator).
| FinTech Investment Latam 2019 | Most Active VCs > 13

About 10% of the funds that have
participated in these rounds belong
to traditional financial entities.
| FinTech Investment Latam 2019 | Most Active VCs > 14

3.
FinTech to watch in 2020

4.
Main Countries Analysis

Brazil

Bruno Diniz
(Head of the FinTech Committe)
“Latin America is considered by different global
investment funds as a place of great "upside” to
invest. Many challenges are to be overcome in
the región, coming up with solutions represents
a great business opportunity. Specially in Brazil,
the year 2020 will be crucial in terms of
regulation and infrastructure. Open Banking,
Regulatory Sandbox and Instant Payment are the
main issues on the agenda for local regulators.
All these changes will further accelerate the
FinTech revolution in Brazil.”
| FinTech Investment Latam 2019 | Main countries analysis > 26

Mexico

Jorge Ortiz
(Co-Founder)
“Growing investment in Mexican FinTech sector
reflects 3 circumstances. Lack of adequate
financial services and products for an increasingly
demanding population, with strong growth
potential. Entrepeneurs professionalization
together with an increased maturity of FinTech
offer, and the confidence of the international
investors. The juncture of the first two
circumstances suggest an exponential growth of the
sector in the short term.”
Full screen map

Argentina

“In spite of a complicated economic situation in
2019, number of companies in local FinTech sector
grew 67% year-on-year, in an economy where
practically no sector shows positive balances or
projections.”
“Argentina has different comparative advantages to
develop a technological financial sector which
increasingly attracts global investment. While bank
account penetration is high (80%), usage level is
low (50%). There are as many smartphones as
inhabitants and connection level is above the
regional average. On the other hand, according to
the World Bank, Argentina is the 7th country with
the lowest credit placement.”
Mariano Biocca
(General coordinator)
Ignacio Carballo
(Program director Fintech & Digital Banking UCA)
Full screen map

Colombia

Juan Saldarriaga
(President Board of Directors)
“Colombia has consolidated itself as the
third FinTech ecosystem in the region right
behind Brazil and Mexico. However,
Colombia is the leader in number of
FinTech companies per capita. We are very
happy as the foreign investment is
increasing and the investment funds look at
the Colombian FinTech ecosystem as one
of the greatest opportunities for
development and consolidation.”
Full screen map
“We have pending tasks in the regulation
of payments and the industry
"deregulation" to improve innovation and to
encourage collaboration with banks, but
overall 2019 was a very good year for
Colombian FinTech.” Finnovating Copyright 2020

Chile

Angel Sierra
(Executive Director)
“FinTech sector continued to grow in 2019 from
110 to 140 companies (+27%). The approval of
FinTech law is imminent in 2020. From FinteChile
we visualize a very powerful year and full of
opportunities for the sector in the country.”
“Chilean FinTech companies are beginning to
look favorably for Colombia and Mexico as a
destination to scale up their operations.
Gradually, traditional financial sector is getting
closer to the FinTech sector.”
Full screen map

Peru

Maria Laura Cuya
(Association President)
Full screen map
“Currently, Peruvian entrepreneurial
ecosystem is clearly expanding. The
appearance of more than one hundred FinTechs
is contributing, not only to the reduction of the
financial gap, but also to the democratization
of services by promoting the arrival of
vulnerable populations.”
“Another valuable characteristic is diversity. In
Fintech Peru, there are more than 40% female
directors and founders in the regional
ecosystem. Regional expansion and greater
sophistication in business models in the
process of internationalization is coming. With
the new crowdfunding regulation, a world of
opportunity begins.”

Related Initiatives
The first FinTech sustainable
summit organized by Finnovating
will take place in Madrid on the 19th
of March.
Link to summit
Link to the report

Accelerating Open Innovation
Finnovating is a OpenInnovation Platformas a Service that enables corporations to accelerate their digital transformation using through investmentsand
collaboration with the best startups & scaleups. We have analyzed more than 5.000X-Techand we help them to scale with corporates, investors and to reach
new markets.
We meet more tan 2.000 CEOs and Founders of X-Tech(FinTech, InsurTech,PropTech,WealthTech,RegTechand LegalTech)from +30 countries in our
International Unconferences.
We are committed to the SDGs:we have more than 1,000 sustainableX-Techand launch the FinTech4 Sustainability Summit.
Open Innovation Platform Open Innovation Ecosystems
Startups & Scaleups Analyzed
+5000
+30
Countries In Europe, Latam
& North America
Every year bringing together +1.500 CEOs of the most important startups & scalups X-Tech
contacto@finnovating.com | www.finnovating.com | www.theunconferences.com

Follow us at our Unconference(s) 2020

Contacts
Contacts
rodrigo.garciadelacruz@finnovating.com
Santiago Molina
santiago.molina@finnovating.com
Jaime Fernandéz
jaime.fernandez@finnovating.com
Webs
Finnovating
www.finnovating.com
Unconference(s)
www.theunconferences.com
FinTech Plaza
www.fintechplaza.es

Disclaimer
This document is for information purposes only and its contents may not be relied upon in support
of any claim or appeal.
Finnovating assumes no responsibility for the information, opinion or action based on such content,
regardless of whether Finnovating has made every effort to ensure the accuracy of the information
contained in its pages.
Finnovating´s data, analytics and insights on FinTech stem from our Deep domain knowledge and
the firm´s propietary database, which has been meticulously and methodically compiled.
Finnovating research team assembles and curates this information through primary research and it
represents years of focus and diligence.

February2020

Fintech iInvestment LATAM 2019

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