FinTech companies in Mexico have raised over $736m across 126 deals since 2014, with 47.5% of this capital being invested in transactions valued at $100m and above. Funding increased at a CAGR of 128.5% between 2014 and 2018 reaching a record of $114.4m last year across 22 transactions.
Investment in FinTech has grown nearly 15-fold since 2016 and can be attributed to government initiatives to increase access to financial services. The National Financial Inclusion Strategy (NFIS) launched in Mexico in 2016 with the goal to improve access to financial services and education. FinTech companies offer an alternative to traditional financial services and give the large unbanked population in Mexico financial access, particularly in rural areas.
Average deal size has increased 63-fold from just $302.2k in 2014 to $18.9m in the first nine months of 2019, as investors in the country look to back more later-stage deals as FinTech innovation spreads across Mexico. 2019 saw the introduction of deals valued at or above $100m, driving investment to a new record of $428.8m only three quarters into the year.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2019 FinTech Global
