Key Latin American FinTech investment stats in Q2 2024:
- Latin America market experienced a contraction in Q2 in terms of deal activity with a drop of 69% YoY
- Brazilian companies dominated the investment landscape, completing half of the top 10 deals in Q2 2024
- Celcoin secured the biggest deal for Q2 2024 in Latin America with a $125m funding round
In Q2 2024, the Latin American FinTech sector recorded 29 transactions, reflecting a sharp decline of 69% from the 93 deals completed during the same quarter in 2023 and a 42% drop from the 50 funding rounds in Q1 2024. The total FinTech funding raised during the second quarter amounted to $444.4m, marking a significant decrease of 30% from the $639.3m raised in Q2 2023 and a 39% decline from the $726.3m raised during the first three months of 2024. This trend underscores a notable slowdown in both deal flow and overall funding, with the sector experiencing a contraction in activity and a reduced scale of investments.
The top 10 deals in Q2 2024 were distributed across four countries, with Brazil once again leading with five deals, while Mexico and Chile each secured two deals, and Puerto Rico contributed with one deal. This distribution shows a continued dominance of Brazil, although its share slightly decreased compared to Q2 2023, where it led with six deals. Mexico maintained its presence with two top deals in both periods, while Chile replaced Puerto Rico, which had two deals in Q2 2023 but only one in Q2 2024. This shift highlights an evolving FinTech landscape in Latin America, with Chile emerging as a key player alongside traditional powerhouses like Brazil and Mexico.
Celcoin, a leading company in the Banking as a Service (BaaS) financial technology market, secured the largest funding deal in Latin America for Q2 2024 with a $125m investment led by global growth equity investor Summit Partners. Known for its partnerships with market-leading FinTech companies such as EngageSmart and Corpay, Summit Partners was joined by existing investor Innova Capital and seasoned FinTech executive John Coughlin in this round. Founded in 2016, Celcoin provides financial infrastructure services for banks, FinTechs, and enterprises, focusing on payments, banking, and lending to enable personalized embedded finance solutions. With over 400 financial industry customers and more than 5,000 non-financial companies leveraging its offerings, Celcoin’s robust platform processes over 200m Pix transactions monthly. The new capital will support Celcoin’s expansion plans, further strengthening its leadership position in the BaaS and embedded finance markets, while driving continued innovation. The investment comes as Celcoin experiences strong momentum, recording $63m in annual recurring revenue in Q1 2024—a 140% increase year-over-year—alongside strategic acquisitions like Galax Pay, Flow Finance, Finansystech, and Reg+.
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