Key LatAm FinTech investment stats in Q1 2025:
- LatAm FinTech deal activity dropped by a 21% YoY in Q1
- Brazil reinforced its position as the LATAM FinTech hub with over half of the deals in the quarter
- Azos, a Brazilian InsurTech focused on delivering accessible life insurance solutions, secured one of the largest LatAm deals of the quarter with a $30.5m Series B round
LatAm FinTech deal activity dropped by a 21% YoY in Q1
In Q1 2025, the Latin American FinTech market experienced a substantial downturn in funding, highlighting ongoing challenges for the region.
Total investment dropped to $352m, marking a 52% decrease from the $726m raised in Q1 2024.
Despite this decline in capital, deal volume fell by a smaller margin, down 21% to 48 deals compared to 61 in the same quarter last year.
The contrasting movements between funding and deal activity suggest a shift towards smaller or early-stage deals, with investors showing caution in backing larger rounds amidst a more uncertain environment.
Brazil reinforced its position as the LATAM FinTech hub with over half of the deals in the quarter
Brazil continued to dominate the regional FinTech landscape, accounting for 25 deals (52% share) in Q1 2025, down 14% from the 29 deals recorded in Q1 2024.
Mexico rose to second place with eight deals (17% share), up from seven deals (11% share) the previous year, while Argentina entered the top three with three deals (6% share), replacing Colombia, which had recorded 12 deals (20% share) in Q1 2024.
Despite the overall decline, Brazil’s increased share of deal activity and Mexico’s modest rise in deal count reflect a consolidation of investor interest in select markets within Latin America, even as broader participation has tapered off.
Azos, a Brazilian InsurTech focused on delivering accessible life insurance solutions, secured one of the largest LatAm deals of the quarter with a $30.5m Series B round
The funding round was led by Lightrock, alongside Kaszek Ventures, Prosus, Munich Re Ventures, Maya Capital, and early Facebook investor Kevin Efrusy.
With a mission to democratise financial protection in a market where 82% of the population lacks active life insurance, Azos has built a strong presence through its tech-enabled, broker-aligned approach and a rapidly growing national footprint.
The company has issued approximately $10.8bn in insured capital to date and experienced exponential growth in 2024, doubling its policy issuance and increasing premium volume by more than 2.5 times, all while maintaining a Net Promoter Score above 80.
This latest capital infusion will bolster Azos’s proprietary technology, fuel its product development pipeline, and expand its distribution capabilities across Brazil’s underserved life insurance market, solidifying its position as a leading InsurTech player in Latin America.
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