Dealmaking value grows

Latin America’s dealmaking activity fell 18% year-on-year in volume but grew over 5% in aggregate value in January-October, according to the monthly M&A report on the region published by TTR Data. 

Overall, Latin America saw 2,307 transactions in the period, including venture capital and private equity deals, M&As and asset acquisitions, with US$66.8bn in aggregate value for the deals with disclosed amounts. Venture capital deals fell 35% to 522.

Of the top six markets in the region, Brazil led in both deal volume (1,342 deals) and aggregate value (US$41.3bn). It was followed by Mexico (283 deals and US$13.7bn), Chile (281 and US$8.3bn), Colombia (221 and US$2.9bn), Argentina (178 and US$3.6) and Peru (139 and US$2.6bn). 

IDB, DFC joins Kamay Ventures

IDB Lab and the US government’s Development Finance Institution (DFC) joined Kamay Ventures, one of Latin America’s biggest VC funds, as investors.

“Following the addition of Grupo Bimbo last year, this alliance significantly strengthens Kamay Ventures’ ability to lead innovation in key sectors such as agtech, environmental solutions, logistics, fintech, biotech and food tech," Kamay said in a release.

Headquartered in Buenos Aires, Kamay Ventures' investment thesis focuses on early-stage startups (Seed-Pre A) with solutions in one of seven verticals: agtech, environment, Industry 4.0, logistics, fintech, point-of-sale automation and foodtech.

Since its launch in 2019, it has analyzed more than 1,500 projects. Its current portfolio includes 16 startups in Latin America, in markets such as Argentina, Mexico, Brazil, Ecuador and Colombia. These include Wiagro, Auravant, INI, Zippin, Kilimo, Webee, Ruedata, BACU, Aerialoop, Altscore, NUDE, Sensei and Sensify.

IoT firm Tractian raises more funds

Brazilian IoT industrial asset monitoring company Tractian raised 700mn reais (US$120mn) in a funding round led by SAP Ventures' arm Sapphire followed by existing investors General Catalyst and Upload Ventures.

Founded in 2019, Tractian is specialized in software and hardware to monitor industrial equipment. The latest round boosts the company’s valuation to US$700mn. The company is growing in the US and already operates in Mexico, in addition to Brazil.

In August 2023, Tractian raised US$45mn led by General Catalyst, with participation from existing investor Next47 and strategic angels, including Rónán de Hooge, VP of the cloud platform of AVEVA, Ron Gill, former SAP and Netsuite CFO, and Andy McCall, former Samsara CRO.

Blip secures US$60mn from Softbank, Microsoft

Conversational AI startup Blip raised US$60mn in a Series C round led by SoftBank with participation from Microsoft, in what is deemed the latter's first direct venture in Latin America.

The proceeds will be used to accelerate international expansion and develop new products, especially those that use AI, said Blip.

The startup has offices in Brazil, Mexico and Spain and operates in more than 30 countries. In addition to strengthening its presence, the company aims to explore new markets, such as the United States.

Colombian microfinance bank gets Accion backing

Washington-based nonprofit organization Accion invested US$15mn through its Accion Digital Transformation Fund in Colombian rural microfinance bank Banco Contactar.

The proceeds will be used to leverage Contactar’s digital technologies “to better serve underserved rural customers across the country,” said Accion.

Launched in March this year, Contactar is now present across 18 departments of Colombia, offering credit for microentrepreneurs and SMEs, along with savings and investment solutions.

Accion’s Digital fund is cushioned with US$153mn in resources. The fund targets banks and finance companies connecting people and small businesses to the digital economy.

Bemobi announces M&A

Brazilian fintech and payment solutions company Bemobi acquired a stake in payment institution Friday, which is licensed with the central bank to operate as a payment transaction initiator.

The transaction is a bet on offering recurring payments with PIX, the Brazilian digital instant payments system. The value of the acquisition was not disclosed.

Bemobi, which launched its IPO during the 2021 boom, reported 154mn reais (US$26.5mn) in net revenue in 3Q24, up 14.7% year-on-year, 442mn reais in January-September (+9.6%) and 571mn reais in cash. When announcing the results, the company also said it was preparing to resume acquisitions.

IDC Ventures expands in Brazil

IDC Ventures, the VC arm of Danish firm IDC Network, is expanding its operations in Brazil by opening a new office, allocating more resources and appointing a new general manager, Felipe Cruz, for the country.

The company is looking at US$30mn to invest in startups in the country through its Flagship Fund II, according to market reports. The goal is for the fund to reach US$200mn in capital.

In 2021, IDC invested in Brazilian company RecargaPay, a platform that simplifies digital payments, and in SuperSim, which specializes in microfinance for unbanked populations.

Across Capital boots up LatAm bets

Miami-based, LatAm-focused investment manager Across Capital closed its first fund at US$120mn for growth equity investments.

The fund has already made four startup investments – QI Tech, Slope, Zig, and Akad. ACP’s focus is on inflection-stage software businesses; Typical investments range from US$5mn to US$25mn, with an emphasis on “profitable or capital-efficient businesses with mission-critical products,” according to the company.

Founded in 2022, ACP is led by co-founders Mike Silva, Rafael Costa and Alexandre Noschese. Silva and Costa previously collaborated for over seven years at Vulcan Capital, the investment arm of Microsoft co-founder Paul G. Allen, where they steered global growth equity investments. Their experience also spans roles at firms such as Summit Partners and FTV Capital.

Source: Business News Americas / BN Americas - Chile