Roundup: Motorola R&D, Cisco-Mexico partnership, VC data, deals and more

Motorola R&D

Motorola Solutions is increasing its investments in R&D and workforce in Brazil, with plans to reach 200 professionals at its local development center by year-end. 

At present, 120 professionals work at the center in São Paulo, a headcount that has doubled since 2023, according to the company. 

The center develops solutions for Motorola's local and global operations, with local teams leading squads in the US and India, among others. In 2024, Motorola Solutions celebrates 45 years of operation in the country, its largest regional market. 

Its main Brazilian clients include federal oil firm Petrobras, the army, the metro companies of Rio de Janeiro and São Paulo, and state security forces.

Cisco nearshoring partnership

Cisco signed a partnership with Mexico to offer training to young people and micro, small and medium-sized companies ith a view to prepare them for nearshoring opportunities.

The initiative is called “Relocation in Mexico: Opportunities for developing talent in digital skills,” and can be accessed via Cisco’s online networking academy platform.

The training includes data science, Internet of Things, cybersecurity, programming, computer networks and technical English.

LatAm dealmaking

Dealmaking in Latin America continued to slide, declining 24% by volume and 18% in capital raised year-to-July, according to TTR Data.

Overall, the region saw 1,497 transactions in the period, of which 755 were M&As, and nearly US$40bn in aggregated value for all disclosed deals.

Of all markets assessed, Argentina saw an increase in value and Peru in number of deals. The other countries saw declines in both categories.

Brazil led in both volume and capital raised, followed by Mexico and Chile. 

By volume, Colombia was fourth, followed by Argentina and Peru. However, by value, Argentina was fourth, followed by Colombia and Peru. 

Brazil IT investments

VC companies invested 4.1bn reais (US$745mn) in 70 operations in H1, according to a quarterly report by the Brazilian association of private equity and venture capital, ABVCAP, based on TTR Data.

The IT sector accounted for 68.2% of the total, followed by financial services (10.4%), raw materials and natural resources (10.3%) and overall industry (5.7%).

In Q2, 2.8bn reais were injected into 31 companies, a 75% increase in value compared to the same period last year, said the report.

Meanwhile, 17 Corporate Venture Capital (CVC) investments were made, totaling 500mn reais. IT also led in CVC investments.

The report can be seen here.

Digitt debt facility

Mexican fintech Digitt secured a US$50mn debt facility from New York’s CoVenture Management, for what is reportedly the asset manager's first direct foray into the Latin American market, reported Fintech Global.

Founded in 2018, Digitt is a credit card and debt refinancing platform.

The startup plans to expand its debt refinancing product range, enhance its offerings, and deepen engagement with the customer base.

AssetWatch series B 

Latin American VC firm Oxygea contributed 10.5mn reais to a US$40mn series B round by US IoT and predictive maintenance startup AssetWatch.

The round was led by US asset management firm Wellington Management and followed by previous series A investors G2 Venture Partners, Triangle Peak Partners, Standard Investments, Osage University Partners and JobsOhio Growth Capital Fund.

“We are convinced that we will be able to contribute to the success of the startup by opening doors for our entire ecosystem as well as supporting future internationalization efforts in Latin America,” Oxygea managing director Vitor Moreira said in a release.

This was Oxygea’s fifth investment in 2024. The firm’s investment thesis is centered on startups with industrial solutions and a focus on sustainability.

Sankhya M&As

Brazilian software company Sankhya acquired for an undisclosed sum Minas Gerais-based startup Espresso, focused on expense management systems, news outlet Startups reported.

This is Sankhya’s seventh acquisition, and the expectation is for yet another M&A in 2024. ERP firm Sankhya plans to reach 1bn reais in annual revenues in two years.

Espresso provides solutions for corporate reimbursement, payment management for suppliers, corporate cards and digital accounts. Among its clients are Santander and BMG.