Proptechs, internet, IT companies boosting Mexico’s fundraising

The real estate sector, with so-called proptechs, and the internet, software and IT services sector have been the fundraising standouts in Mexico this year, according to TTR Data.

The Mexican market saw M&A, private equity, venture capital and asset acquisition deals worth a total of US$11.8bn in January-October, according to TTR’s monthly country tracking. 

That was a drop of 19% compared with the same period of 2022.

There were also some 280 fundraising rounds in the first 11 months of the year, which was a 23.9% year-on-year drop. Of the total deals in the period, there were 123 M&As worth US$9.16bn, according to TTR. 

There were 37 transactions in the real estate sector and 36 in the internet, software and IT services sector in the period.

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The rollercoaster of startup funding continues in Latin America. 

In October, in 58 funding rounds, the region's startups secured some US$442mn, down 21% month-on-month and -54% year-on-year, according to a report by SlingHub and Itaú BBA.

Despite the drop, equity rounds are gaining more traction as opposed to debt and receivable funds, according for 93% of the total rounds in October, the report. The month also saw the year's largest equity round, with Brazilian startup QI Tech raising US$200mn in series B funding.

Another highlight was Chile, where startups raised US$$56mn in October, over five times the amount collected in October 2022.

Meanwhile, M&As have cooled, with October seeing the lowest number of transactions so far this year, according to SlingHub/Itaú.

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Brazilian logistics startup Logcomex raised 165mn reais (US$31.8mn) in a funding round led by Riverwood Capital, with participation from Endeavor Catalyst.

Current investors such as Igah Ventures, Alexia Ventures and Caravela Capital also participated in the round, reported Scale-Up Ventures, Logcomex's accelerator and first investor.

The money will be used to expand product offerings for logistics operators and importers, and to launch industry-specific features to serve new customers, including exporters, banks, insurers, automotive and pharmaceutical companies, according to Scale-Up.

Logcomex also has plans to enter new markets in Latin America, it said.

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Brazil’s BuyBye, a smart retail startup founded in 2020, said it completed its acquisition of autonomous store chain Zaitt, which is said to be the first company in this segment in Latin America.

The process began about a year ago, when multinational Sapore – Zaitt's majority shareholder – entered into a partnership with BuyBye related to management and supply of technology. BuyBye said.

With the takeover, Zaitt stores will have “cutting-edge resources such as the use of artificial intelligence algorithms that control supply, consumption and customer behavior, as well as personalized services according to purchase data – collected in applications, at self-checkout (when the customer passes their purchases at the checkout) or even through facial scanning,” it said.

The value of the deal and contract specifics were not disclosed.

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Argentina’s Agrotoken, focused on linking commodities to digital assets for the purchase of inputs, machinery and other products, closed a pre-Series A financing round led by its partner Visa.

The value of the round was not disclosed, but market sources said that Visa alone invested US$2mn.

Agrotoken said it will use the investment to accelerate growth and develop new products. The company also said it is extending its partnership with Visa to expand card issuance to more countries.