Key Latin American FinTech investment stats in Q1 2024
• Latin American FinTech deal activity reached 46 transactions in Q1 2024, 48% reduction YoY
• Latin American FinTech companies raised a combined $257m in Q1 2024, a 52% increase from Q1 2023
• Brazil was the most active Latin American FinTech country with 18 funding rounds, a 39% share of deals.
In the first quarter of 2024, Latin American FinTech companies experienced a significant shift in their financial landscape. Deal activity in the region saw a total of 46 deals, marking a 48% reduction compared to the same period in the previous year. Despite the decrease in deal numbers, these companies raised a combined total of $257m, representing a substantial 52% increase in funding from the first quarter of 2023.
Simetrek, which automates financial and accounting control, had the largest Latin American FinTech deal in Q1 2024 after raising $55m in their latest Series B funding round, led by Goldman Sachs Asset Management. Simetrik has developed intuitive solutions to simplify and automate key financial tasks like record centralization, reconciliations, controls, reporting, and accounting. Its products are based on Simetrik Building Blocks (SBBs), a scalable, adaptable, and intuitive concept based on no-code development and generative AI technologies. Tailored to the dynamic needs of CFOs and their teams, these SBBs are set to further evolve with the Series B funding, enhancing their AI capabilities and reinforcing Simetrik’s dedication to advancing these solutions. Simetrik clients base includes large companies such as PayU, Mercado Libre, Rappi, PagSeguro, Falabella, Oxxo, Itaú, and Nubank, and partnerships with leading firms like Deloitte. The company’s global footprint spans over 35 countries, monitoring over 200 million records daily, including in key Asian markets such as India and Singapore. Simetrik intends to use funds from this Series B to help expand its international reach, targeting major payment companies and consumer marketplaces worldwide.
Brazil was the most active Latin American FinTech country with 18 deals, a 39% share of deals. Colombia was the second most active country with 11 deals, a 24% share of deals. Mexico was third with seven deals, a 15% share of deals.
The latest Latin American finance regulation came from Brazil’s National Monetary Council has implemented tighter regulations on the issuance of private debt securities associated with real estate and agribusiness financing. These securities, including CRAs, CRIs, LCAs, LCIs, and LIGs, have witnessed substantial growth in Brazil recently and offer tax exemptions to investors. However, only a fraction of these securities were found to be fulfilling their intended purpose of initiating new credit operations, prompting the government to anticipate a reduction in issuance volume. Real estate-linked securities like LCI and LIG amount to 460 billion reais ($93.57 billion), while LCAs, tied to agribusiness, also represent the same value. The changes entail stricter rules for eligible underlying assets in new issuances and aim to improve the effectiveness of public policy in supporting these sectors, according to a joint statement by the finance ministry and the central bank.
