Key Latin American FinTech investment stats in Q2 2024:
- Latin America FinTech investments dropped by 31% YoY
- Average deal size increased to $15.3m in Q2 indicating that investors are growing cautious and focusing on more established FinTech companies
- Celcoin secured the biggest deal for Q2 2024 in Latin America with a $125m funding round
In Q2 2024, the Latin American FinTech market saw a sharp decline in both the number of deals and total funding. The number of deals dropped by 69%, from 93 in Q2 2023 to just 29 in Q2 2024. This represents a significant reduction in activity, continuing the downward trend from Q1 2024, which recorded 50 deals. The total funding also saw a substantial decrease, with Q2 2024 reaching $444m, a 31% drop from the $639m raised in Q2 2023 and a 39% decline from the $726m raised in Q1 2024.
When breaking down the deals, the under-$100m segment saw a steep drop in value, falling 43.7% from $389m in Q2 2023 to $219m in Q2 2024. Larger deals, those over $100m, remained more stable but still dipped slightly, from $250m in Q2 2023 to $225m in Q2 2024, a decrease of 10%.
The average deal value in Q2 2024 was $15.3m, a rise from $6.9m in Q2 2023 and $14.5m in Q1 2024, reflecting fewer but larger deals. This shift may indicate that investors are increasingly cautious, focusing on more established FinTech companies and avoiding smaller, riskier ventures in the face of economic challenges and market volatility in the region. The tighter funding conditions and risk aversion could explain the significant reduction in smaller deals, while the larger ones have maintained relative stability.
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+.
Keep up with all the latest FinTech research here
Copyright © 2024 FinTech Global
