Latin American agtechs raised over US$600mn in 2022-23

Latin America is reaping its agribusiness potential with new streams of venture capital flowing into startups that are developing solutions for the industry.

Between January 2022 and end-December 2023, the so-called agtechs collected over 3bn reais (US$603mn) through 116 VC deals, according to a new tracking study carried out by Brazilian startup platform Liga Ventures, in partnership with Bunge and Hub CNA Digital.

Those providing financial solutions, also known as agfintechs, led the way with 26% of the total investments in the period, followed by startups with solutions for low-carbon agriculture (22%), according to the study.

By geographically, the landscape is led by Brazil, with 83% of the region’s mapped agtechs, followed by Argentina (5%), Mexico (4%), Colombia (4%) and Chile (3%).

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Brazilian telcos Algar Telecom and TIM are leveraging on startups through partnerships and equity investments.

Algar Telecom Venture Builder, the telco's open innovation arm, said that it added healthtech Mediquo to its portfolio of startups. The partnership, which did not involve equity, was supported by Algar's R&D and innovation hub Brain.

MediQuo reports having 450,000 users and over 1.5mn consultations carried out on its digital platform last year. In 2023, it reported 5mn reais in revenues, said Algar.

Algar Telecom Venture Builder was created in 2022 in partnership with multinational FCJ Venture Builder. It is focused on co-development of solutions and support of early-stage tech firms. M&A opportunities are assessed on a case-by-case basis.

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Meanwhile, TIM invested in California-based retail media startup Topsort through Upload Ventures. No values were disclosed.

This was the fund's first contribution. Upload Ventures is anchored by the Brazilian operator, but the round also included the participation of Pear VC and Quiet Capital funds.

With clients in Latin America, Topsort provides infrastructure software to marketplaces, enabling the development of advertising businesses using primary data. The funds will be used for technology, workforce growth and expansion in Brazil, said TIM.

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Brazil’s largest software company Totvs completed the acquisition of its Totvs Interior Paulista e Triângulo Mineiro (Totvs IP) franchise, after receiving due regulatory nods for the transaction.

According to the software group, Totvs IP has over 400 employees and 2,000 customers in different cities in São Paulo and Minas Gerais states.

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Grupo EYSA, a Spanish tech company dedicated to managing sustainable mobility, bought Brazilian firm Serbet for an undisclosed sum. 

Serbet offers access control and payment solutions for regulated parking in the country.

The deal expands EYSA's urban mobility presence to 22 cities in Brazil and it is part of a broader push in Latin America, the company said in a statement.

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Cross-border payments and cryptocurrency startup BRLA Digital received an investment from 99 Capital as it builds up its pre-seed round. 

The investment was endorsed by Dave Wang, founder of 99 Capital and former head of crypto at Softbank Latin America, and it brings the total for the round to over 4mn reais, BRLA said. 

The deal comes at a time where Brazil is gradually opening up the crypto market. BRLA Digital said it is looking to strengthen itself in the cross-border payments and crypto infrastructure market.

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VC funds INventures, Mueller Medien, Atmos and PortfoLion invested 25mn reais in edrone, a Polish CRM and marketing automation startup with a branch in São José dos Campos, Brazil.

The branch office is the Polish firm's first in Latin America. The funds will be used mainly to expand the operation in Brazil, doubling the number of local employees. Another move in Latin America is also planned.