Key LatAm FinTech investment stats in Q2 2025:
- LatAm FinTech funding increased by 13% QoQ in Q2 2025
- Average deal value increased to $15.9m as investors’ interest recovers
- Crabi, Mexico’s first fully digital and tech-native auto insurance provider, secured one of the top LatAm FinTech deals for the second quarter with a $13.6m equity raise
LatAm FinTech funding increased by 13% QoQ in Q2 2025
In Q2 2025, the LatAm FinTech market saw a modest decline in both funding and deal activity compared to the same quarter in the previous year.
Total funding in Q2 2025 stood at $398m, representing a 10% drop from the $444m raised in Q2 2024.
The number of deals also declined slightly, falling from 29 to 25, which reflects a 14% decrease YoY.
This downward trend underscores a cautious investor outlook, as macroeconomic headwinds and tightening global capital conditions continue to shape investment behaviour across the region.
Compared to Q1 2025, funding increased from $352m to $398m—an improvement of 13% QoQ.
However, deal activity continued to slow, slipping from 27 to 25 deals, a 7% decline.
This contrasting movement in funding and deal volume suggests that while fewer deals are taking place, capital is being concentrated into slightly larger transactions, possibly reflecting a focus on scaling existing investments rather than diversifying into new, early-stage ventures.
Average deal value increased to $15.9m as investors’ interest recovers
The average deal size in Q2 2025 was $15.9m, up from $13.0m in Q1 2025 and relatively flat compared to the $15.3m average in Q2 2024.
This moderate growth in average deal value suggests that investors are favouring slightly larger rounds, potentially in more mature FinTech companies with established market traction.
While deal count continues to taper, the sustained level of average investment size indicates selective optimism in the LatAm FinTech ecosystem, with funding likely directed toward high-confidence opportunities in an otherwise cautious environment.
Crabi, Mexico’s first fully digital and tech-native auto insurance provider, secured one of the top LatAm FinTech deals for the second quarter with a $13.6m equity raise
The raise was led by Kaszek and IGNIA.
Focused on transforming Mexico’s underpenetrated auto insurance market—where over 70% of vehicles remain uninsured—Crabi uses AI to automate policy issuance, pricing, and claims, delivering instant, mobile-first coverage.
Its platform integrates with brokers, dealerships, and lenders to streamline operations and improve underwriting accuracy.
With rapid annual growth, enhanced loss ratios, and improved operational efficiency, Crabi aims to use the new capital to expand its distribution footprint and deepen its AI capabilities, reinforcing its mission to modernise insurance infrastructure and increase access to affordable, intelligent coverage across the country.
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