The Nubank EC-1

Brazil is a country riven with economic contradictions. It has one of the largest and most profitable banking industries in Latin America, and is among the world’s most developed financial markets. Financial transactions that would take days to process in the United States through ACH happen instantaneously in Brazil. This sophistication, however, masks a backward state of affairs plagued by appalling customer service, exorbitant fees and lack of banking access for many.

The country’s financial system is volatile and often leaves its citizens with few or no alternatives. According to an HBS case study, “in December 2018 the interest rate in Brazil for corporate loans was 52.3%, for consumer loans it was 120.0% and for credit card indebtedness it was 272.42%.” Those rates are many multiples higher compared to figures in neighboring countries.

Brazil’s banking system is a massive market, and one ill-served by incumbents. If someone could thread the needle of product development, strategy and political horse trading required to build a bank in a country where it is nearly impossible for foreigners to own or invest in a bank, it would be one of the great startup and economic success stories of this century.

Nubank is on its way to realizing that objective. Its story is one of unmitigated success, even by the standards of our EC-1 series on high-flying companies and their hard-learned lessons. Just last week, this Brazilian credit card and banking fintech raised a $750 million round led by Berkshire Hathaway at a $30 billion valuation, becoming one of the most valuable startups in the world. It has 40 million users across Brazil, as well as Mexico and Colombia.

Yet, it’s a startup with a CEO and co-founder who isn’t Brazilian, didn’t speak the local language of Portuguese, hadn’t started a company before, and didn’t really know a lot about banking to begin with. This is a story of how raw execution, a “faster, faster” mentality and a fanaticism for making customer experience as enjoyable as a trip to Disney World can completely change the history of an industry — and country — forever.

Our lead writer for this EC-1 is Marcella McCarthy. McCarthy, who spent significant time in Brazil growing up and is trilingual in English, Spanish and Portuguese, has been covering the LatAm and Miami ecosystems for TechCrunch with an eye to the disruption underway in these interconnected regions. The lead editor for this package was Danny Crichton, the assistant editor was Ram Iyer, the copy editor was Richard Dal Porto, and illustrations were drawn by Nigel Sussman.

Nubank had no say in the content of this analysis and did not get advance access to it. McCarthy has no financial ties to Nubank or other conflicts of interest to disclose.

The Nubank EC-1 comprises four main articles numbering 9,200 words and a reading time of 37 minutes. Here’s what’s in the bank:

We’re always iterating on the EC-1 format. If you have questions, comments or ideas, please send an email to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.

#banking, #brazil, #credit-card, #david-velez, #ec-brazil, #ec-fintech, #ec-latin-america-and-caribbean, #ec-1, #finance, #latin-america, #nubank, #nubank-ec-1, #startups

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How contrarian hires and a pitch deck started Nubank’s $30 billion fintech empire

For most startups, the hardest early challenge is identifying a market and a product to serve it. That wasn’t the case for Nubank CEO David Velez, who understood the massive potential for success if he could break into Latin America’s most valuable economy with even a moderately modern banking offering.

Instead, the challenge was how to rebuild the concept of a bank in a country where banking is widely hated, all while the incumbents heavily entrenched with the state worked to block every move.

Nubank knew its market and geography, and through tenacious fundraising, inventive marketing and product development, and a series of contrarian hires, Velez and his team stripped bare the morass of Brazilian banking to build one of the world’s great fintech companies.

The challenge was how to rebuild the concept of a bank in a country where banking is widely hated, all while the incumbents heavily entrenched with the state worked to block every move.

In the first part of this EC-1, I’ll look at how Velez brought his skills and experience to bear on this market, how Nubank was founded in 2013, and how the team brought a Californian rather than Brazilian vibe to their first office on — no joke — California Street, in a neighborhood called Brooklin in the city of São Paulo.

The makings of an entrepreneur

The idea of being his own boss was ingrained in Velez from his earliest days in Colombia, where he grew up in an entrepreneurial family, with a father who owned a button factory. “I heard from my dad over and over again that you need to start your own company,” Velez said.

But years would pass and Velez still had no idea what he wanted to do. To “kill time,” and also to surround himself with entrepreneurial energy, Velez attended Stanford University — partially financed by the sale of some livestock — and then worked as an analyst at Goldman Sachs and Morgan Stanley before switching to venture capital at General Atlantic and Sequoia.

#banking, #brazil, #credit-card, #david-velez, #ec-brazil, #ec-fintech, #ec-latin-america-and-caribbean, #ec-1, #finance, #fintech, #nubank, #nubank-ec-1, #online-bank, #online-banking, #startups, #tc

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One woman’s drive to make a neobank as magical as Disney

As we mentioned in part 1 of this EC-1, David Velez had two key co-founding roles he needed to fill to get started building Nubank. For one, he needed a CTO to lead the engineering side of the business, as Velez didn’t have an engineering background.

Edward Wible, an American computer science graduate who spent most of his career in private equity, would take that responsibility. He didn’t bring years of coding experience, but he had qualities that Velez considered more important: A strong belief in the potential of the product and an equally intense commitment to working on it.

Given the occasionally hostile reaction of most incumbent banks to their customers in Brazil, Nubank’s starkly contrasting openness and transparency has garnered a huge following.

That left an even more important role to fill — one that was much harder to define. This other co-founder would need to blend knowledge of the Brazilian market and local savvy with expertise in banking, all while embodying a Silicon Valley ethos of focusing on customers. This person would also have to work in São Paulo for minimal wages out of a small office with just one bathroom, all in the belief that their equity (both stock and sweat) would one day be worth it.

Velez would eventually stumble upon Cristina Junqueira, who was qualified to do all this, and much, much more.

“Once someone said I was the glue of the operation, and that someone else was the brains. And I said, ‘No, I’m the glue and the brains, and I bet my brain is even better than his,”’ Junqueira said.

Junqueira didn’t just lead Nubank’s drive into the Brazilian market, she also upended age-old notions of what it means to be a 21st-century bank. Her inspiration was nothing short of Disney, and her mission was to create a bank as popular as the magical kingdom itself.

A bank. As popular as Disney. Sounds like a fairy tale, frankly.

Raised to be a doer

Unlike her co-founders Velez and Wible, Junqueira grew up in Nubank’s home market of Brazil. The eldest of four sisters, she remembers her parents — both dentists — always assiduously working to maintain their practice.

Their work ethic trickled down, but so did responsibility. As the oldest at home, she was forced to grow up quickly and take on responsibilities from an early age. “I remember being 11 years old and doing grocery shopping for the month,” she said. “I did everything very young.”

#brazil, #credit-card, #cristina-junquiera, #david-velez, #ec-brazil, #ec-fintech, #ec-latin-america-and-caribbean, #ec-1, #finance, #fintech, #nubank, #nubank-ec-1, #online-banking, #startups, #tc

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How Nubank’s CX strategy made it one of the most loved digital banks

As we saw in parts 1 and 2 of this EC-1, by mid-2013, Nubank CEO David Velez had most of what he needed to get started. He’d brought on two co-founders, assembled ambitious engineering and operations teams, raised $2 million in seed funding from Sequoia and Kaszek, rented a tiny office in São Paulo, and was armed with a mission to deliver the kind of banking services that customers in a market as large and lucrative as Brazil’s should expect.

Despite being named Nubank, however, the startup couldn’t actually be a bank: Brazil’s laws made it illegal at the time for a foreigner-run company to operate a bank. That restriction required the team to develop an inventive product strategy to find a foothold in the market while they waited for a license directly from the country’s president.

Nubank was so adamant about differentiating itself from other banks that it chose Barney purple for its brand color and first credit card.

Nubank therefore pursued a credit card as its first offering, but it had to race against a clock counting quickly down to zero. At the time, Brazil didn’t have ownership restrictions on this product segment like it did with banking, but new rules were coming into force in just a few months in May 2014 that would block a company like Nubank from launching.

The company needed to execute rapidly over the next eight months if it wanted to be grandfathered into the existing regulations. The speed of operations was frantic to say the least, and the company would go on to work even faster, ultimately propelling itself into the stratosphere of fintech startups.

Full faith in credit

It’s easy to assume that the name Nubank refers to “new bank,” but that’s not really what the founders were going for. The word “nu” in Portuguese means “naked,” and Velez and his team wanted the name to reflect their vision: To build a 21st-Century bank without any of the shackles imposed by the traditional banks in Brazil.

The team wanted to offer services to as many people as possible, as there is a huge wealth gap in Brazil, where the minimum wage is around $200 a month.

Launching with just a credit card was both a strategic and practical business decision. Credit cards were widely used in the country, and everyone understood how they worked. Additionally, you could only use credit cards to shop online in Brazil, because debit cards weren’t accepted.

#brazil, #credit-card, #david-velez, #ec-brazil, #ec-fintech, #ec-latin-america-and-caribbean, #ec-1, #finance, #fintech, #nubank, #nubank-ec-1, #online-banking, #startups, #tc

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Fintech all-star Nubank raises a $750M mega round

In 2013, Colombian businessman David Velez decided to reinvent the Brazilian banking system. He didn’t speak Portuguese, nor was he an engineer or a banker, but he did have the conviction that the system was broken and that he could fix it. And as a former Sequoia VC, he also had access to capital.

His gut instinct and market analysis were right. Today, Nubank announced a $750 million extension to its Series G (which rang in at $400 million this past January), bringing the round to a total of $1.15 billion and their valuation to $30 billion — $5 billion more than when we covered them in January.

The extension funding was led by Berkshire Hathaway, which put in $500 million, and a number of other investors.

Velez and his team decided now was a good time to raise again, because, “We saw a great opportunity in terms of growth rate and we’re very tiny when compared to the incumbents,” he told TechCrunch.”

Nubank is the biggest digital bank in the world by number of customers: 40 million. The company started as a tech company in Brazil that offered only a fee-free credit card with a line of credit of R$50 (about USD$10). 

It now offers a variety of financial products, including a digital bank account, a debit card, insurance, P2P payment via Pix (the Brazilian equivalent of Zelle), loans, rewards, life insurance and an account and credit card for small business owners. 

Nubank serves unbanked or underserviced citizens in Brazil — about 30% of the population — and this approach can be extremely profitable because there are many more clients available.

The banking system in Brazil is one of the few bureaucracies in the country that is actually quite skillful, but the customer service remains unbearable, and banks charge exorbitant fees for any little transaction. 

Traditionally, the banking industry has been dominated by five major traditional banks: Itaú Unibanco, Banco do Brasil, Bradesco, Santander and Caixa Economica Federal. 

While Brazil remains Nubank’s primary market, the company also offers services in Colombia and Mexico (services launched in Mexico in 2018). The company still only offers the credit card in both countries.

“The momentum we’re seeing in Mexico is terrific. Our Mexican credit card net promoter score (NPS) is 93, which is the highest we’ve had in Nubank history. In Brazil the highest we’ve had was 88,” Velez said.

The company has been on a hiring spree in the last few months, and brought on two heavyweight executives. Matt Swann replaced Ed Wible (the original CTO and co-founder). Wible continues to be an important player in the company, but more in a software developer capacity. Swann previously served as CTO at Bookings.com and StubHub, and as CIO of the Global Consumer Bank at Citi, so he brings years of experience of scaling tech businesses, which is what Nubank is focused on now, though Velez wouldn’t confirm which countries are next.

The other major hire, Arturo Nunez, fills the new role of chief marketing officer. Nunez was head of marketing for Apple Latin America, amongst other roles with Nike and the NBA. 

It may sound a little odd for a tech company not to have had a head of marketing, but Nubank takes pride in having a $0 cost of acquisition (CAC). Instead of spending money on marketing, they spend it on customer service and then rely on word of mouth to get the word out.

Since we last spoke with Velez in January regarding the $400 million Series G, the company went from having 34 million customers to now having 40 million in a span of roughly 6 months. The funds will be used to grow the business, including hiring more people.

“We’ve seen the entire market go digital, especially people who never thought they would,” Velez said. “There is really now an avalanche of all backgrounds [of people] who are getting into digital banking.”

#banking, #berkshire-hathaway, #bradesco, #brazil, #colombia, #credit-cards, #cto, #david-velez, #digital-banking, #engineer, #finance, #financial-services, #funding, #itau-unibanco, #life-insurance, #mexico, #nubank, #p2p, #santander, #tc

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Jeeves emerges from stealth with $131M in debt and equity and a16z as a lead investor

Jeeves, which is building an “all-in-one expense management platform” for global startups, is emerging from stealth today with $131 million in total funding, including $31 million in equity and $100 million in debt financing. 

The $31 million in equity consists of a new $26 million Series A and a previously unannounced $5 million seed round.

Andreessen Horowitz (a16z) led the Series A funding, which also included participation from YC Continuity Fund, Jaguar Ventures, Urban Innovation Fund, Uncorrelated Ventures, Clocktower Ventures, Stanford University, 9 Yards Capital and BlockFi Ventures.

A high-profile group of angel investors also put money in the round, including NFL wide receiver Larry Fitzgerald and the founders of five LatAm unicorns — Nubank CEO David Velez, Kavak CEO Carlos Garcia, Rappi co-founder Sebastian Mejia, Bitso CEO Daniel Vogel and Loft CEO Florian Hagenbuch. Justo’s Ricardo Weder also participated in this round and Plaid co-founder William Hockey put money in the $5 million seed funding that closed in 2020 after the company completed the YC Summer 2020 batch.

The “fully remote” Jeeves describes itself as the first “cross country, cross currency” expense management platform. The startup’s offering is currently live in Mexico — its largest market — as well as Colombia, Canada and the U.S., and is currently beta testing in Brazil and Chile. 

Dileep Thazhmon and Sherwin Gandhi founded Jeeves last year under the premise that startups have traditionally had to rely on financial infrastructure that is local and country-specific. For example, a company with employees in Mexico and Colombia would require multiple vendors to cover its finance function in each country — a corporate card in Mexico and one in Colombia and another vendor for cross-border payments.

Image Credits: Left to right: Jeeves co-founders Dileep Thazhmon and Sherwin Gandhi

Jeeves claims that by using its platform, any company can spin up their finance function “in minutes” and get access to 30 days of credit on a true corporate card, noncard payment rails, as well as cross-border payments. Customers can also pay back in multiple currencies, reducing FX (foreign transaction) fees.

“We’re building an all-in-one expense management platform for startups in LatAm and global markets — cash, corporate cards, cross-border — all run on our own infrastructure,” Thazhmon said. 

“We’re really building two things — an infrastructure layer that sits across banking institutions in different countries. And then on top of that, we’re building the customer-, or end user-facing app,” he added. “What gives us the ability to launch in countries much quicker is that we own part of that stack ourselves, versus what most fintechs would do, which is plug into a third-party provider in that region.” 

Image Credits: Jeeves

Indeed, the company has seen rapid early growth. Since launching its private beta last October, Jeeves says it has grown its transaction volume (GTV) by 200x and increased revenue by 900% (albeit from a small base). In May alone, Jeeves says it processed more transaction volume than the entire year to date, and more than doubled its customer base. It says that “hundreds of companies,” including Bitso, Belvo, Justo, Runa, Worky, Zinboe, RobinFood and Muncher, “actively” use Jeeves to manage their local and international spend. On top of that, it says, the startup has a waitlist of more than 5,000 companies — which is part of why the company sought to raise debt and equity.

The shift to remote work globally due to the COVID-19 pandemic has played a large role in why Jeeves has seen so much demand, according to Thazhmon.

“Every company is now becoming a global company, and the service to employees in two different countries requires two different systems,” he said. “And then someone’s got to reconcile that system at the end of the month. This has been a big reason why we’re growing so fast.”

One of Jeeves’ biggest accomplishments so far, Thazhmon said, has been receiving approval to issue cards from its own credit BIN (bank identification number) in Mexico. It can also run SPEI payments directly on its infrastructure. (SPEI is a system developed and operated by Banco de México that allows the general public to make electronic payments.)

“This gives us a lot of flexibility and allows us to offer a truly unique product to our customers,” said Thazhmon, who previously co-founded PowerInbox, a
Battery Ventures-backed MarTech company that he says grew to $40 million in annual revenue in three years.

Jeeves says it will use the fresh capital to onboard new companies to the platform from its waitlist, scale its infrastructure to cover more countries and currencies as well as do some hiring and expand its product line.

A16z General Partner Angela Strange, who is joining Jeeves’ board as part of the investment, is extremely bullish on the startup’s potential.

Strange says she met Thazhmon about a year ago and was immediately intrigued.

“Not only were they working to provide the financial operating system within a country, starting in Mexico, they were designing their software platform to scale across multiple countries,” she said. “Finally — a multicountry/currency expense management & payouts platform, where increasingly companies have employees and operations in multiple countries from the start and can use a single company to manage their financials.”

Strange, who has been investing in Latin America for the past few years, notes that most companies in the region are unable to get a corporate credit card.

“That’s only the tip of the iceberg,” she told TechCrunch. “It’s cumbersome for companies to make bank to bank payouts, handle wires, and they usually also have expenses in the U.S. (and often other countries) so there is also FX. And they manage multiple bank accounts. Not only is paying hard, reconciliation on the backend takes weeks.”

As such, Strange said, with every country having their own bank transfer system, rules around who can issue a credit card, approved payment processors, currencies and bank accounts — payments and expense management across countries can be complex.

Jeeves, according to Strange, “gets as close to the networks/payment rails as possible” since it has its own issuing credit BIN versus needing to connect through legacy players.

Providing an orchestration layer on top of all the rails gives Jeeves the ability “to handle all the payment and reconciliation complexity” so “their customers don’t have to think about it,” she added.

 

#a16z, #andreessen-horowitz, #andressen-horowitz, #angela-strange, #apps, #bank, #banking, #bitso, #brazil, #canada, #chile, #clocktower-ventures, #colombia, #credit-card, #daniel-vogel, #david-velez, #expense-management, #finance, #financial-infrastructure, #financial-services, #funding, #fundings-exits, #jaguar-ventures, #jeeves, #latin-america, #mexico, #money, #national-football-league, #nfl, #nubank, #online-payments, #operating-system, #payment-card, #payments, #profile, #rappi, #recent-funding, #runa, #software-platform, #stanford-university, #startup, #startups, #tc, #uncorrelated-ventures, #united-states, #urban-innovation-fund, #venture-capital, #william-hockey

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Belvo, LatAm’s answer to Plaid, raises $43M to scale its API for financial services

Belvo, a Latin American startup which has built an open finance API platform, announced today it has raised $43 million in a Series A round of funding.

A mix of Silicon Valley and Latin American-based VC firms and angels participated in the financing including Future Positive, Kibo Ventures, FJ Labs, Kaszek, MAYA Capital, Venture Friends, Rappi co-founder and president Sebastián Mejía (Rappi), Harsh Sinha, CTO of Wise (formerly Transferwise) and Nubank CEO and founder David Vélez.

Citing Crunchbase data, Belvo believes the round represents the largest series A ever raised by a Latin American fintech. In May 2020, Belvo raised a $10 million seed round co-led by Silicon Valley’s Founders Fund and Argentina’s Kaszek.

Belvo aims to work with leading fintechs in Latin America, spanning across verticals like the neobanks, credit providers and personal finance products Latin Americans use every day.

The startup’s goal with its developer-first API platform that can be used to access and interpret end-user financial data is to build better, more efficient and more inclusive financial products in Latin America. Developers of popular neobank apps, credit providers and personal finance tools use Belvo’s API to connect bank accounts to their apps to unlock the power of open banking.

As TechCrunch Senior Editor Alex Wilhelm explained in this piece last year, Belvo might be considered similar to U.S.-based Plaid, but more attuned to the Latin American market so it can take in a more diverse set of data to better meet the needs of the various markets it serves. 

So while Belvo’s goals are “similar to the overarching goal[s] of Plaid,” co-founder and co-CEO Pablo Viguera told TechCrunch that Belvo is not merely building a banking API business hoping to connect apps to financial accounts. Instead, Belvo wants to build a finance API, which takes in more information than is normally collected by such systems. Latin America is massively underbanked and unbanked so the more data from more sources, the better.

“In essence, we’re pushing for similar outcomes [as Plaid] in terms of when you think about open banking or open finance,” Viguera said. “We’re working to democratize access to financial data and empower end users to port that data, and share that data with whoever they want.”

The company operates under the premise that just because a significant number of the region’s population is underbanked doesn’t mean that they aren’t still financially active. Belvo’s goal is to link all sorts of accounts together. For example, Viguera told TechCrunch that some gig-economy companies in Latin America are issuing their own cards that allow workers to cash out at small local shops. In time, all those transactions are data that could be linked up using Belvo, casting a far wider net than what we’re used to domestically.

The company’s work to connect banks and non-banks together is key to the company’s goal of allowing “any fintech or any developer to access and interpret user financial data,” according to Viguera.

Viguera and co-CEO Oriol Tintoré founded in May of 2019, and was part of Y Combinator’s Winter 2020 batch. Since launching its platform last year, the company says it has built a customer base of over 60 companies across Mexico, Brazil and Colombia, handling millions of monthly API calls. 

This is important because as Alex noted last year, similar to other players in the API-space, Belvo charges for each API call that its customers use (in this sense, it has a model similar to Twilio’s). 

Image Credits: Co-founders and co-CEOs Oriol Tintore and Pablo Viguera / Belvo

Also, over the past year, Belvo says it expanded its API coverage to over 40 financial institutions, which gives companies the ability to connect to over 90% of personal and business bank accounts in LatAm, as well as to tax authorities (such as the SAT in Mexico) and gig economy platforms.

“Essentially we take unstructured financial data , which an individual might have outside of a bank such as integrations we have with gig economy platforms such as Uber and Rappi. We can take a driver’s information from their Uber app, which is kind of built like a bank app and turn it into meaningful bank-like info which third parties can leverage to make assessments as if it’s data coming from a bank,” Viguera explained.

The startup plans to use its new capital to scale its product offering, continue expanding its geographic footprint and double its current headcount of 70. Specifically, Belvo plans to hire more than 50 engineers in Mexico and Brazil by year’s end. It currently has offices in Mexico City, São Paulo, and Barcelona. The company also aims to  launch its bank-to-bank payment initiation offering in Mexico and Brazil.

Belvo currently operates in Mexico, Colombia and Brazil. 

But it’s seeing “a lot of opportunity” in other markets in Latin America, especially in Chile, Peru and Argentina, Viguera told TechCrunch. “In due course, we will look to pursue expansion there.” 

Fred Blackford, founding partner of Future Positive, believes Belvo represents a “truly transformational opportunity for the region’s financial sector.”

Nicolás Szekasy, co-founder and managing partner of Kaszek, noted that demand for financial services in Latin America is growing at an exponential rate .

“Belvo is developing the infrastructure that will enable both the larger institutions and the emerging generation of younger players to successfully deploy their solutions,” he said. “ Oriol, Pablo, and the Belvo team have been leading the development of a sophisticated platform that resolves very complex technical challenges, and the company’s exponential growth reflects how it is delivering a product that fits perfectly with the requirements of the market.” 

#alex-wilhelm, #api, #argentina, #bank, #banking, #barcelona, #belvo, #brazil, #ceo, #chile, #co-ceo, #colombia, #cto, #david-velez, #driver, #editor, #finance, #financial-services, #fj-labs, #founders-fund, #funding, #fundings-exits, #kaszek, #kibo-ventures, #latin-america, #mexico, #mexico-city, #nubank, #online-food-ordering, #open-banking, #open-finance, #peru, #rappi, #recent-funding, #sao-paulo, #startup, #startups, #tc, #technology, #twilio, #uber, #vc, #venture-capital, #wise, #y-combinator

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Meet Justos, the new Brazilian insurtech that just got backing from the CEOs of 7 unicorns

Here in the U.S. the concept of using driver’s data to decide the cost of auto insurance premiums is not a new one.

But in markets like Brazil, the idea is still considered relatively novel. A new startup called Justos claims it will be the first Brazilian insurer to use drivers’ data to reward those who drive safely by offering “fairer” prices.

And now Justos has raised about $2.8 million in a seed round led by Kaszek, one of the largest and most active VC firms in Latin America. Big Bets also participated in the round along with the CEOs of seven unicorns including Assaf Wand, CEO and co-founder of Hippo Insurance; David Velez, founder and CEO of Nubank; Carlos Garcia, founder and CEO Kavak; Sergio Furio, founder and CEO of Creditas; Patrick Sigris, founder of iFood and Fritz Lanman, CEO of ClassPass. Senior executives from Robinhood, Stripe, Wise, Carta and Capital One also put money in the round.

Serial entrepreneurs Dhaval Chadha, Jorge Soto Moreno and Antonio Molins co-founded Justos, having most recently worked at various Silicon Valley-based companies including ClassPass, Netflix and Airbnb.

“While we have been friends for a while, it was a coincidence that all three of us were thinking about building something new in Latin America,” Chadha said. “We spent two months studying possible paths, talking to people and investors in the United States, Brazil and Mexico, until we came up with the idea of creating an insurance company that can modernize the sector, starting with auto insurance.”

Ultimately, the trio decided that the auto insurance market would be an ideal sector considering that in Brazil, an estimated more than 70% of cars are not insured. 

The process to get insurance in the country, by any accounts, is a slow one. It takes up to 72 hours to receive initial coverage and two weeks to receive the final insurance policy. Insurers also take their time in resolving claims related to car damages and loss due to accidents, the entrepreneurs say. They also charge that pricing is often not fair or transparent.

Justos aims to improve the whole auto insurance process in Brazil by measuring the way people drive to help price their insurance policies. Similar to Root here in the U.S., Justos intends to collect users’ data through their mobile phones so that it can “more accurately and assertively price different types of risk.” This way, the startup claims it can offer plans  that are up to 30% cheaper than traditional plans, and grant discounts each month, according to the driving patterns of the previous month of each customer. 

“We measure how safely people drive using the sensors on their cell phones,” Chadha said. “This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”

Justos also plans to use artificial intelligence and computerized vision to analyze and process claims more quickly and machine learning for image analysis and to create bots that help accelerate claims processing. 

“We are building a design driven, mobile first and customer experience that aims to revolutionize insurance in Brazil, similar to what Nubank did with banking,” Chadha told TechCrunch. “We will be eliminating any hidden fees, a lot of the small text and insurance specific jargon that is very confusing for customers.”

Justos will offer its product directly to its customers as well as through distribution channels like banks and brokers.

“By going direct to consumer, we are able to acquire users cheaper than our competitors and give back the savings to our users in the form of cheaper prices,” Chadha said.

Customers will be able to buy insurance through Justos’ app, website, or even WhatsApp. For now, the company is only adding potential customers to a waitlist but plans to begin selling policies later this year..

During the pandemic, the auto insurance sector in Brazil declined by 1%, according to Chadha, who believes that indicates “there is latent demand rearing to go once things open up again.”

Justos has a social good component as well. Justos intends to cap its profits and give any leftover revenue back to nonprofit organizations.

The company also has an ambitious goal: to help make insurance become universally accessible around the world and the roads safer in general.

“People will face everyday risks with a greater sense of safety and adventure. Road accidents will reduce drastically as a result of incentives for safer driving, and the streets will be safer,” Chadha said. “People, rather than profits, will become the focus of the insurance industry.”

Justos plans to use its new capital to set up operations, such as forming partnerships with reinsurers and an insurance company for fronting, since it is starting as an MGA (managing general agent).

It’s also working on building out its products such as apps, its back end and internal operations tools as well as designing all its processes for underwriting, claims and finance. Justos’ data science team is also building out its own pricing model. 

The startup will be focused on Brazil, with plans to eventually expand within Latin America, then Iberia and Asia.

Kaszek’s Andy Young said his firm was impressed by the team’s previous experience and passion for what they’re building.

“It’s a huge space, ripe for innovation and this is the type of team that can take it to the next level,” Young told TechCrunch. “The team has taken an approach to building an insurance platform that blends being consumer centric and data driven to produce something that is not only cheaper and rewards safety but as the brand implies in Portuguese, is fairer.”

#airbnb, #apps, #artificial-intelligence, #asia, #assaf-wand, #auto-insurance, #banking, #brazil, #cell-phones, #ceo, #classpass, #creditas, #david-velez, #driver, #finance, #founder, #fritz-lanman, #funding, #fundings-exits, #hippo-insurance, #ifood, #insurance, #insurance-policies, #insurtech, #kaszek, #latin-america, #machine-learning, #mexico, #mobile-phones, #netflix, #nubank, #recent-funding, #silicon-valley, #startup, #startups, #united-states, #venture-capital

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Brazil’s Loft adds $100M to its accounts, $700M to its valuation in a single month

Nearly exactly one month ago, digital real estate platform Loft announced it had closed on $425 million in Series D funding led by New York-based D1 Capital Partners. The round included participation from a mix of new and existing investors such as DST, Tiger Global, Andreessen Horowitz, Fifth Wall and QED, among many others.

At the time, Loft was valued at $2.2 billion, a huge jump from its being just near unicorn territory in January 2020. The round marked one of the largest ever for a Brazilian startup.

Now, today, São Paulo-based Loft has announced an extension to that round with the closing of $100 million in additional funding that values the company at $2.9 billion. This means that the 3-year-old startup has increased its valuation by $700 million in a matter of weeks.

Baillie Gifford led the Series D-2 round, which also included participation from Tarsadia, Flight Deck, Caffeinated and others. Individuals also put money in the extension, including the founders of Better (Zach Frenkel), GoPuff, Instacart, Kavak and Sweetgreen.

Loft has seen great success in its efforts to serve as a “one-stop shop” for Brazilians to help them manage the home buying and selling process. 

Image courtesy of Loft

In 2020, Loft saw the number of listings on its site increase “10 to 15 times,” according to co-founder and co-CEO Mate Pencz. Today, the company actively maintains more than 13,000 property listings in approximately 130 regions across São Paulo and Rio de Janeiro, partnering with more than 30,000 brokers. Not only are more people open to transacting digitally, more people are looking to buy versus rent in the country.

“We did more than 6x YoY growth with many thousands of transactions over the course of 2020,” Pencz told TechCrunch at the time of the company’s last raise. “We’re now growing into the many tens of thousands, and soon hundreds of thousands, of active listings.”

The decision to raise more capital so soon was due to a variety of factors. For one, Loft has received “overwhelming investor interest” even after “a very, very oversubscribed main round,” Pencz said.

“We have seen a continued acceleration in our market share growth, especially in São Paulo and Rio de Janeiro, the two markets we currently operate in,” he added. “We saw an opportunity to grow even faster with additional capital.”

Pencz also pointed out that Baillie Gifford has relatively large minimum check size requirements, which led to the extension being conducted at a higher price and increased the total round size “by quite a bit to be able to accommodate them.”

While the company was less forthcoming about its financials as of late, it told me last year that it had notched “over $150 million in annualized revenues in its first full year of operation” via more than 1,000 transactions.

The company’s revenues and GMV (gross merchandise value) “increased significantly” in 2020, according to Pencz, who declined to provide more specifics. He did say those figures are “multiples higher from where they were,” and that Loft has “a very clear horizon to profitability.”

Pencz and Florian Hagenbuch founded Loft in early 2018 and today serve as its co-CEOs. The aim of the platform, in the company’s words, is “bringing Latin American real estate into the e-commerce age by developing online alternatives to analogue legacy processes and leveraging data to create transparency in highly opaque markets.” The U.S. real estate tech company with the closest model to Loft’s is probably Zillow, according to Pencz.

In the United States, prospective buyers and sellers have the benefit of MLSs, which in the words of the National Association of Realtors, are private databases that are created, maintained and paid for by real estate professionals to help their clients buy and sell property. Loft itself spent years and many dollars in creating its own such databases for the Brazilian market. Besides helping people buy and sell homes, it offers services around insurance, renovations and rentals.

In 2020, Loft also entered the mortgage business by acquiring one of the largest mortgage brokerage businesses in Brazil. The startup now ranks among the top-three mortgage originators in the country, according to Pencz. When it comes to helping people apply for mortgages, he likened Loft to U.S.-based Better.com.

This latest financing brings Loft’s total funding raised to an impressive $800 million. Other backers include Brazil’s Canary and a group of high-profile angel investors such as Max Levchin of Affirm and PayPal, Palantir co-founder Joe Lonsdale, Instagram co-founder Mike Krieger and David Vélez, CEO and founder of Brazilian fintech Nubank. In addition, Loft has also raised more than $100 million in debt financing through a series of publicly listed real estate funds.

Loft plans to use its new capital in part to expand across Brazil and eventually in Latin America and beyond. The company is also planning to explore more M&A opportunities.

This article was updated post-publication to reflect accurate investor information

#andreessen-horowitz, #baillie-gifford, #better-mortgage, #better-com, #brazil, #co-founder, #d1-capital-partners, #david-velez, #dst, #finance, #financial-services, #funding, #fundings-exits, #instacart, #instagram, #joe-lonsdale, #latin-america, #loft, #max-levchin, #mike-krieger, #money, #new-york, #nubank, #palantir, #paypal, #proptech, #real-estate, #real-estate-tech, #recent-funding, #sao-paulo, #startup, #startups, #tc, #tiger-global, #united-states, #venture-capital, #zillow

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Fintech darling Nubank raises blockbuster $400M Series G at $25B valuation

While the pandemic has left some startups strapped for cash, the aptly-named Brazilian neobank Nubank is swimming in it. This morning, the company announced that it has raised a $400 million Series G round, putting their total funding to date at $1.2 billion. But even more remarkable, in addition to their new $25 billion valuation (up from $10 billion in 2019), is their customer base of 34 million users, which they’ve built up since the fintech’s launch in 2013.

“We’ve gone from 12 million customers in 2019 to 34 million solely based on word of mouth,” said David Velez, the company’s co-founder and CEO. By September last year, the company was onboarding 41,000 new customers per day. NuBank prides itself on having a $0 customer acquisition cost. Velez said the startup spends what would be marketing money on “great salaries” and superior customer service, which in turn creates “fanatic” customers who share their love for the brand with others.

The new valuation places NuBank as the fourth most valuable financial institution in Latin America and the largest digital bank in the world by the number of customers and app downloads. 

The round was led by both private and public investors including Singapore’s GIC, Whale Rock, and Invesco. Current investors Tencent, Dragoneer, Ribbit Capital, and Sequoia also participated in the round. Velez is a former Sequoia partner and is originally from Colombia though he attended Stanford University and worked in the U.S. for many years.

NuBank, based in São Paulo — the financial capital of Latin America and home to 12.8 million people — has expanded to Colombia and Mexico and plans to use the new funding to flesh out its operations in those markets while continuing to build out its product offerings in Brazil.

What started as a credit card company now functions as a full-service bank, minus the cumbersome bank branches, which is one way the company has been able to allocate its funding primarily toward growth.

“People were really done with being mistreated and paying high fees,” said Velez, speaking to Brazil’s notoriously bureaucratic and dreadful banking experience (liken it to going to the DMV, but regularly). Historically, to pay your monthly bills in Brazil, you had to go to a bank branch and wait in line — often outside in the heat — until it was your turn. The lines wrapped around the block like that of an Apple Store upon the release of the latest iPhone.

“It’s like they are doing you a favor by opening an account for you and then charging you 450% interest rate per year,” said Velez. “Our bet was that people would really like to be treated like humans,” he added.

In 1994, when the Brazilian real currency was introduced, it was pegged at 1:1 with the U.S. dollar. However, in recent years, with the country’s largest corruption scandal in history which saw three consecutive presidents jailed, impeached, and incriminated, respectively, the economy has plummeted. And COVID-19 certainly hasn’t helped. The exchange rate is now 1 USD to 5.40 BRL. With low exchange rates in Brazil, Colombia, and Mexico, a $400 million USD investment creates a sizable runway, especially since Nubank’s Brazil operation has been cash-flow positive since 2018.

The company is known for reaching the unbanked population in Brazil, especially those who simply weren’t in the financial position to get a credit card. Traditional banks are present in about 80% of Brazilian municipalities, but considering that Nubank’s app-based product is location-agnostic, it’s able to reach 100% of the municipalities, the company said. In addition, it’s been helping Brazilians build credit. Its Barney-purple credit card starts at a monthly limit of $50 reals per month (roughly $10 USD). If a customer pays on time the first month, their credit continues to increase over the following months. 

Amongst its slew of products, Nubank also offers a debit card and savings account, and while it doesn’t have branches of its own, money can be withdrawn from network ATM’s, as is common in the U.S.

“Nubank was born out of the conviction that people deserved better, more transparent and human financial services that would allow them to be in control of their money and their future. We started seven years ago in Brazil, a country with one of the most concentrated banking sectors in the world, and we were able to free millions of people of the bureaucracy and the pain. Through technology and human customer service, we were able to have a positive impact on their daily lives,” said Velez.

#brazil, #colombia, #david-velez, #finance, #funding, #fundings-exits, #mexico, #nubank

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La Haus is bringing US tech services to Latin America’s real estate market

The alchemy for a successful startup can be hard to parse. Sometimes, it’s who you know. Sometimes it’s where you go to school. And sometimes it’s what you do. In the case of La Haus, a startup that wants to bring U.S. tech-enabled real estate services to the Latin American real estate market, it’s all three.

The company was founded by Jerónimo Uribe and Rodrigo Sánchez Ríos, both graduates of Stanford University who previously founded and ran Jaguar Capital, a Colombian real estate development firm that had built over $350 million worth of retail and residential projects in the country.

Uribe, the son of the controversial Colombian President Daniel Uribe (who has been accused of financing paramilitary forces during Colombia’s long-running civil war and wire-tapping journalists and negotiators during the peace talks to end the conflict) and Sánchez Ríos, a former private equity professional at the multi-billion-dollar firm Lindsay Goldberg, were exposed to the perils and promise of real estate development with their former firm.

Now the two entrepreneurs are using their know-how, connections and a new technology stack to streamline the home-buying process.

It’s that ambition that caught the attention of Pete Flint, the founder of Trulia and now an investor at the venture capital firm NFX. Flint, an early investor in La Haus, saw the potential in La Haus to help the Latin American real estate market leapfrog the services available in the U.S. Spencer Rascoff, the co-founder of Zillow, also invested in the company.

“Latin America is very early on in its infancy of having really professional agents and really professional brokerages,” said Flint.

La Haus guides home buyers through every stage of the process, with its own agents and salespeople selling properties sourced from the company’s developer connections.

“The average home in the U.S. sells in six weeks or less,” said La Haus chief financial officer Sánchez Ríos in an interview. “That timing in Latin America is 14 months. That’s the dramatic difference. There is no infrastructure in Latin America as a whole.”

La Haus began by reaching out to the founders’ old colleagues in the real estate development industry and started listing new developments on its service. Now the company has a mix of existing and new properties for sale on its site and an expanded geographic footprint in both Colombia and Mexico.

“We have a portal… that acts as a lead-generating machine,” said Sánchez Ríos. “We aggregate listings, we vet them. We focus on new developers.”

The company has about 500 developers using the service to list properties in Colombia and another 200 in Mexico. So far, the company has facilitated more than 2,000 transactions through its platform in three years.

“Real estate now is turning fully digital and also in this market professionalizing,” said Flint. “The publicly traded online real estate companies are approaching all-time highs. People are just prizing the space that they spend their time in… the technologies from VR and digital walkthroughs to digital closes become not just a nice to have but a necessity. “

Capitalizing on the open field in the market, La Haus recently closed on $10 million in financing led by Kaszek Ventures, one of the leading funds in Latin America. That funding will be used to accelerate the company’s geographic expansion in response to increasing demand for digital solutions in response to the COVID-19 epidemic.

“Because of Covid-19, consumers’ willingness to conduct real estate transactions online has gone through the roof,” said Sánchez Ríos, in a statement. “Fortunately we were in the position to enable that, and we expect to see a permanent shift online in how people conduct all, or at least most, of the home-buying process. This funding gives us ample runway to build the end-to-end real estate experience for the post-Covid Latin America.”

Joining NFX, Rascoff, and Kaszek Ventures are a slew of investors, including Acrew Capital, IMO Ventures and Beresford Ventures. Entrepreneurs like Nubank founder David Velez; Brian Requarth, the founder of Vivareal (now GrupoZap); and Hadi Partovi, CEO and founder of Code.org, also participated in the financing.

“We backed La Haus because we saw many of the same ingredients that resulted in a fantastic outcome for many of our successful companies: A world-class team with complementary skills; a huge addressable market; and an almost religious zeal by the founders to solve a big problem with technology,” said Hernan Kazah, co-founder and managing partner of Kaszek Ventures. 

#acrew-capital, #colombia, #david-velez, #hadi-partovi, #kaszek-ventures, #la-haus, #latin-america, #mexico, #nfx, #nubank, #online-real-estate, #pete-flint, #real-estate, #recent-funding, #spencer-rascoff, #stanford-university, #startups, #tc, #trulia, #united-states, #vivareal, #zillow

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Belvo scores $10M from Founders Fund and Kaszek to scale its API for financial services

Belvo, a Latin American fintech startup which launched just 12 months ago, has already snagged funding from two of the biggest names in North and South American venture capital.

The company is aiming to expand the reach of its service that connects mobile applications in Mexico and Colombia to a customer’s banking information and now has some deep-pocketed investors to support its efforts. 

If the business model sounds familiar, that’s because it is. Belvo is borrowing a page from the Plaid playbook. It’s a strategy that ultimately netted the U.S. startup and its investors $5.3 billion when it was acquired by Visa in January of this year.

Belvo and its backers, who funneled $10 million into the year-old company, want to replicate Plaid’s success and open up an entire new range of financial services companies in Latin America.  

The round was co-led by Silicon Valley’s Founders Fund and Argentina’s Kaszek. With the new arsenal of capital complimented by the Founders Fund’s network and Kaszek’s deep knowledge of the Latin American market, Belvo hopes to triple its current team of 25 that is spread across operations in Mexico City and Barcelona. 

Since its initial establishment in May 2019, the company has raised a total of $13 million from Y Combinator (W20) along with some of the biggest players in Latin America’s startup scene. Those investors include David Velez, the co-founder of Brazil’s multi-billion dollar lending startup, Nubank; MAYA Capital and Venture Friends. 

The company’s co-founders, Pablo Viguera and Oriol Tintoré are no stranger to startups themselves. Viguera served as COO at European payments app Verse, and is a former general manager of one of the big European neo-banks, Revolut. Tintoré is a former NASA aerospace engineer, and while working for his Stanford MBA, founded Capella Space, an information collection startup that went on to raise over $50 million. 

The company said it aims to work with leading fintechs in Latin America, spanning across verticals like the neobanks, credit providers and personal finance products Latin Americans use every day.

Belvo has built a developer-first API platform that can be used to access and interpret end-user financial data to build better, more efficient and more inclusive financial products in Latin America. Developers of popular neobank apps, credit providers and personal finance tools use Belvo’s API to connect bank accounts to their apps to unlock the power of open banking.

Viguera says the capital will be used to open a new office in Sao Paulo, and invest in new product and business development hires. Notably, Belvo is only one year old, having launched in January 2020 and operative in Mexico and Colombia. 

Co-founders Pablo Viguera and Oriol Tintoré are a former Revolut GM and former NASA aerospace engineer.

 

Belvo’s latest funding also marks another instance of a U.S.-Latin America investment teamup for a Latin American company.

Nuvocargo, a logistics startup that wants to bolster the Mexico – U.S. trade lane with its freight transportation technology, also recently raised a round co-led by Mexico’s ALLVP and Silicon Valley-based NFX. American investors may be starting to take note of the co-investment opportunity of putting capital into startups serving the Latin American market in partnership with successful new wave domestic funds like Mexico’s ALLVP and Argentina’s Kaszek.  

#aerospace, #api, #argentina, #banking, #barcelona, #belvo, #brazil, #capella-space, #co-founder, #colombia, #companies, #coo, #david-velez, #economy, #engineer, #finance, #fintech-startup, #founders-fund, #latin-america, #mexico, #mexico-city, #nubank, #nuvocargo, #revolut, #sao-paulo, #startup-company, #tc, #the-founders-fund, #united-states, #venture-capital, #visa, #y-combinator

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Latin America Roundup: Big rounds, big mergers and a $3.8M pandemic fund from Nubank

Despite the global panic caused by the current pandemic, startups in Latin America have continued to attract international capital. In April, Mexico’s Alphacredit, Colombia’s Frubana and Brazil’s CargoX were among those that raised particularly large rounds to support their growth during this challenging time. All three companies target markets that may have grown since the start of the pandemic, namely lending, food delivery and cargo delivery, respectively.

Alphacredit, a Mexican lending startup, raised a $100 million equity round from SoftBank and previous investors to continue to expand its digital banking services across Mexico. This round comes just months after the startup received a $125 million Series B round from SoftBank in January of this year. Alphacredit’s CEO explained that the round would enable the company to help clients during the current liquidity crisis, increasing financial inclusion in Mexico.

Meanwhile, fresh produce delivery platform Frubana raised a $25 million Series A led by GGV and Monashees, with support from SoftBank, Tiger Global and several other private investors. The startup delivers fresh produce to restaurants and small retailers directly from farmers across Colombia, and participated in Y Combinator in 2019.

Frubana has seen a boom in demand for its products since the start of the COVID-19 pandemic. People have shied away from visiting large grocery stores, preferring to visit local mom-and-pop shops that receive the startup’s deliveries. Frubana raised $12 million in mid-2019 to help scale into Mexico and Brazil after it hit a monthly growth rate of 50% in the Colombian market. The startup’s founder, Fabián Gomez, started Frubana after serving as head of Expansion at Rappi, one of Latin America’s fastest-growing startups and Colombia’s first unicorn.

Finally, Brazil’s “Uber for Trucks,” CargoX raised an $80 million Series E round led by LGT Lightstone Latin America, with contributions from Valor Capital, Goldman Sachs and Farallon Capital. The startup has quietly grown to become one of the largest players in Brazil’s inefficient trucking industry, managing a fleet of nearly 400,000 truck drivers, without owning a single truck.

This investment brings CargoX’s total capital raised to $176 million and has enabled the company to launch a $5.6 million fund for the delivery of essential goods in Brazil during COVID-19. This fund will help CargoX keep drivers employed and ensure the proper delivery of essential goods like medication, food and cleaning products.

Nubank launches $3.8 million COVID-19 fund to support clients

Brazil’s largest neobank, Nubank, announced a $3.8 million (R$20 million) fund to help its clients survive the current pandemic. The fund also relies on partnerships with iFood, Rappi, Hospital Sírio-Libanês and Zenklub to help struggling clients access food, supplies, medical care and online psychological treatment throughout the pandemic.

Nubank will use the fund to grant credits to people who cannot leave their home, providing them with discounted groceries and free delivery service. Through the partnership with Hospital Sírio-Libanês, the neobank will pay for more than 1,000 free online consultations with doctors for its home-bound clients.

Nubank has more than 20 million clients across Brazil and Mexico, where it launched in 2019. CEO David Velez stated that he believed the fund could serve tens of thousands of people in need by the end of April. Customers who wished to receive these benefits were directed to reach out to Nubank via phone, email or chat to be connected with a representative who could grant the appropriate credits.

iFood merges with Domicilios to fight Rappi in its home territory

Brazil’s largest food deliverer, iFood, recently announced a partnership with Delivery Hero to merge with their Colombian subsidiary, Domicilios. The parties did not disclose the price of the deal but have shared that iFood is now the majority shareholder in Domicilios, holding 51% of the company.

IFood operates in Mexico and Colombia, as well as Brazil, but has struggled to gain traction in Spanish-speaking Latin America. This merger makes iFood geographically the largest food delivery company in the country, with more than 12,000 restaurants in its network. However, local last-mile delivery startup Rappi continues to dominate the market, using SoftBank backing to blitzscale across the region.

By comparison, iFood has focused on developing its technology, using artificial intelligence to improve the user experience across its platforms in Mexico, Colombia and Brazil. Using these systems, iFood processes more than 26 million deliveries each month, helping restaurants across the region adapt to the new protocols caused by the virus and social-distancing policies. IFood hopes the merger will help provide a more competitive delivery service for Colombians, as well as helping boost growth for local restaurants.

News and Notes: Nuvocargo, Kueski, Magma Partners, SouSmile

Freight-forwarding startup Nuvocargo raised $5.3 million in seed funding to support the growth of its trade routes across the U.S.-Mexico border. Founded by Ecuadorian-born Deepak Chhugani in 2018, Nuvocargo has grown quickly since participating in Y Combinator, although this funding was their first institutional round. The round drew investors from both sides of the border, including Mexico’s ALLVP. Nuvocargo also marks the first investment by new partner Antonia Rojas Eing. Nuvocargo is working hard to ensure its truck drivers are safe as they continue to deliver essential supplies across the border through the pandemic.

Mexican online credit platform Kueski announced that it would lay off employees due to the economic crunch caused by COVID-19. Kueski provides microloans to more than 500,000 Mexicans and has been struggling financially as business slows during the pandemic. While Kueski did not disclose an official number, it is estimated that they laid off around 90 employees.

Latin American venture capital firm Magma Partners acquired Guadalajara-based accelerator Rampa Ventures to intensify its investments in Mexico. Rampa’s headquarters will serve as a Mexican base for Magma Partners as it continues to invest in the country, where it already has 12 startups in its portfolio. As a part of the deal, Rampa’s founder Mak Gutierrez will take over as CEO of Magma Partners’ internal agency, Magma Infrastructure, which helps startups grow and market themselves in the region.

The Brazilian direct to consumer dental tech startup SouSmile raised a $10 million Series A this month, closing the deal before investors began to show concerns about COVID-19. SouSmile uses 3D scanners to rapidly create invisible alignment devices for customers to provide them with affordable orthodontics for 60% cheaper than current models. This model has proved highly successful in Latin America, where access to orthodontics is quite low and cost-prohibitive.

Despite an impending global economic crisis, startup investment in Latin America showed signs of resilience in April. Startups in industries like delivery, healthcare and essential services have seen growth this month, and many are providing support to their customers and suppliers in this challenging time.

It is hard to predict what the world will look like for startups, let alone for anyone, by the end of next month. The resilience of Latin America’s startups provides hope that some businesses will bounce back and continue to support their customers throughout the global recovery from this pandemic.

#antonia-rojas-eing, #artificial-intelligence, #brazil, #business, #cargox, #colombia, #column, #david-velez, #delivery-hero, #economy, #ecuador, #food, #food-delivery, #funding, #goldman-sachs, #healthcare, #ifood, #latin-america, #latin-america-roundup, #ma, #magma-partners, #mexico, #movile, #nubank, #nuvocargo, #online-food-ordering, #rappi, #softbank, #softbank-group, #sousmile, #startup-company, #tiger-global, #uber, #valor-capital, #venture-capital, #y-combinator

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