Latin America saw 1,883 M&A, private equity, venture capital and asset acquisition transactions in the first seven months, a decrease of 6 per cent year-over-year, according to data compiled by Transactional Track Record (TTR) in partnership with Datasite.
Of the total, 830 deals disclosed valuations that amounted to a combined US$59.6bn, which was down 38 per cent over the same period in 2021, said TTR.
The figures confirm the cool-off in risk capital inflows to the region, mostly to late-stage startups.
In January-July, there were 95 private equity operations worth US$5.73bn, down 19 per cent and 41 per cent, respectively.
TTR also registered 595 venture capital transactions with 2 per cent annual growth, with an aggregate value of US$6.09bn, down 44 per cent.
Brazil was the leader with 1,297 operations (down 4%) worth US$35.3bn (down 39%). Mexico followed with 242 deals totaling US$9.32bn, up 12 per cent and down 23 per cent, respectively. Next were Chile, Colombia, Argentina and Peru.
The internet, software & IT sector continued as the largest deal segment in both Brazil and the rest of the region. In the Brazilian market there were 259 transactions in the first seven months, a 34 per cent decline from the same period last year, said TTR.
Colombia’s Amazóniko, developer of an app of the same name, said in a release that it reached 8,000 users in the greater Bogotá area, where its operations are concentrated.
Amazóniko enables corporates and households to schedule the collection of their usable waste and to measure their carbon footprint reduction.
The startup is investing to expand its presence and reach more users, taking the collection routes to more districts.
Amazóniko said its users have contributed to the recovery of more than 1,100t of waste.
Brazilian digital identity solutions provider Unico said it acquired local player MakroSystems in a 150mn-real (US$29.6mn) deal.
MakroSystems develops security solutions for people’s digital transactions at banks, non-bank financial institutions, payment networks and fintechs.
The deal represents Unico’s seventh acquisition in 15 years of operation. It is also the first since it received financing in April from Goldman Sachs, which raised Unico’s valuation to US$2.6bn.
Brazilian open banking fintech Klavi raised US$15mn in a Series A round led by private equity funds Iporanga Ventures and Parallax Ventures, with participation of GSR Ventures, banking infra provider CIP and Vivo Ventures, the VC vehicle of Telefônica Brasil (Vivo).
Vivo Ventures contributed US$3mn to the round, the telecom operator said in a separate filing. This investment is the first in a fintech since the telco’s VC fund was created last April.
Klavi will use the proceeds to enhance product development, R&D and engineering.
Founded in 2020, the fintech is focused on the development of application programming interfaces (APIs), structures that allow financial institutions to plug into a shared open banking platform.
Klavi’s clients include fintech and credit providers, as well as Telefônica Brasil itself.
Chilean paper and pulp group CMPC inked a partnership with Israel-based open innovation group Sosa to foster partnerships with startups.
The partners will co-develop solutions to reduce costs and improve efficiency at its Brazilian operations.
The main objective is to optimize and modernize the transport of pulp and wood, which is currently carried out by waterways and land, CMPC Brasil said in a statement.
“Selected startups will have the opportunity to carry out POC [proofs of concept] of their solutions on an industrial scale and potentially support CMPC’s efforts to have a more efficient and sustainable supply chain,” said the company.
Sosa performs search and validation of startups for corporations and governments. The multinational has had an agreement with the Brazilian industries confederation (CNI) since 2021.
Mexican proptech and fintech DD360 said it raised US$91mn in a round led by US venture capital fund Creation Investments Capital Management, with participation of several other investors.
The fresh capital complements US$140mn in committed lines of credit previously secured by the company.
It will use the funds to accelerate the expansion of its credit portfolio for residential real estate developers, scale its individual mortgage loan product through the Compa platform, and enhance the development of its technology platforms, including the hiring of software engineers.
According to the release, DD360 has financed over 120 real estate projects and built a loan portfolio of over US$230mn.
