Business

Four countries lead Latin America's fintech funding ranking in 2020, with over 99% of the total raised

Fintechs from Mexico, Colombia and Uruguay received, respectively, $567 million, $210 million and $187 million. Brazil amassed 66% of all investment in the region: $1.97 billion

Brazil's fintech unicorn C6 Bank. Photo: Shutterstock

Financial tech companies in Latin America raised almost US$ 3 billion in investment over 198 deals during the year of 2020, according to data from Colombian platform Latam Fintech Hub. From the $2.98 billion, $2.5 billion were raised via equity while $458 million came into the hands of fintech companies through debt financing.

As the most mature ecosystem, Brazil leads the ranking grabbing as much as 66% of all volume invested, or $1.97 billion. The country saw massive deals in the year with $300 million round raised by Nubank and Neon’s same value round – the latter became a unicorn company along with C6 Bank and Creditas.

Mexico ranks second in the list with a 19% share and 567 million dollars invested in companies such as AlphaCredit, which received $125 million in early 2020 through an equity investment round from SoftBank.

READ ALSO: From Kavak to Bitso: 10 major investment rounds raised by Mexican startups in 2020

In third place, Uruguay appears ahead of Colombia, pulled by its first unicorn company dLocal, which surpassed the $1 billion valuation milestone after raising US$ 200 million from General Atlantic back in September.

READ ALSO: The fintech behind Colombia’s private instant payments system Transfiya

83%

of total funding came to three business segments: Neobanks, B2B and B2C digital lending, and payments

Trailing just behind Uruguay is Colombia, which amassed over $187 million in investment for its fintech companies. With a 6.3% share of the volume invested, the country has the fintech focused on credit products to the end-user Avista, which raised US$ 75 million in a debt financing round in April.

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