The global fintech ecosystem slowed in the first half of 2023, with funding and deals falling to levels not seen since 2017, according to a study by business analytics platform CB Insights, which has a global database.
Global fintech funding fell 48% quarter-on-quarter to US$7.8 billion in the second quarter of the year, the lowest level since 2017. Counting the entire first half of the year, funding coming into the fintech ecosystem was US$22.9 billion, this is less than half of the same period in 2022.
Read more details about the five Latin American fintech companies that raised the most capital in the first half of the year, and find the latest business news of the day with the born2Invest mobile app.
However, five Latin American fintech companies stood out in this period in terms of raising more capital
According to data compiled by Latam Fintech Hub consulting firm, Mexican fintech company Konfío, which grants loans to small businesses, was the technology and financial company that raised the most capital in the first half of the year. The fintech company obtained a two-year extension of the combined credit lines with Goldman Sachs and Gramercy to reach US$227 million, an increase of 13.8%. The resources will be used to grant close to 10,000 new loans.
Second place went to a Colombian fintech company, Finsocial, which raised around US$201 million in debt for the origination of new loans. This funding was in addition to the US$125 million it received from Morgan Stanley and the resources it raised from Symbiotics and Norfund. Finsocial is known for lending free investment loans in the modality of libranza and consumer credit.
In third place is Mexican fintech company Marco, the startup that offers loans and other services to exporters in Latin America. It received a US$200 million credit line to grow its trade finance business. MidCap Financial Investment Corp. and Castlelake LP provided the credit for the Mexican startup.
Next is the neobank Nubank, which obtained a loan of up to US$150 million from the International Finance Corporation, with a three-year term, to boost the growth of Nu’s local operations and expand access to financial services.
Finally, the top 5 is rounded off by another Mexican fintech company. The financing platform Fairplay raised a US$100 million credit line to support new ventures in Mexico. The loan from Community Investment Management LLC is in addition to US$8.5 million from other internal investors.
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First published in LR LA REPUBLICA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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