“When you've learned to believe in yourself, there's no telling how good a player you can be. That's because you have the mental edge.” - Rod Carew (Panamanian former MLB player and coach)
June 27, End Of Day
The fintech sector in Latin America has clearly been the sector that most investors trust. In the latest research, published by the IDB, they note how the sector is not only expanding rapidly but also evolving in terms of complexity and capability. The key insights include:
Qurable: Qurable’s innovative approach allows businesses to launch loyalty programs 10 times faster, with interoperability between brands and without sharing users’ personal data. They are supported by major enterprises like Adidas, L’Oreal, SkyAirlines, and Despegar. Dive deeper into the case here.
Quantum: Their vision is to provide a comfortable, safe, and 100% electric transportation solution. They have achieved significant milestones with over 400 units sold across 5 countries. Their vehicles are 80% cheaper to operate than gasoline cars. Get to know the case here.
FeedVax: Animal farming is a $2,3T industry that has a $300B loses due to diseases. There are two bad alternatives to prevent diseases: injectable vaccines and antibiotics. The new way to solve these problems → Oral vaccines. Get to know the case here.
Dive deeper into other fundraising firms in LatAm here.
Mexico: President-elect Claudia Sheinbaum pledged responsible spending and controlling the fiscal deficit next year without raising taxes. She aims to reduce the deficit to 3.5% of GDP by 2025. Sheinbaum defended a proposed judicial reform to elect judges by popular vote, assuring it won't lead to authoritarianism. However, the reform has spooked markets, causing an 8.5% drop in the peso since the election, due to fears it could undermine judicial independence.
Brazil: Brazil's bioinputs market is growing at an annual rate of 21%, four times the global average, driven by farmers switching from pesticides and fertilizers. The market reached $924 million in the 2023/2024 season, with bioinputs primarily used on soybean, corn, and sugarcane fields. Mato Grosso state leads with 33% of the domestic market. Bioinputs, derived from enzymes, plant extracts, and microorganisms, are used for pest control, crop yield improvement, and as alternatives to antibiotics.
Guyana: ExxonMobil's $55 billion offshore oil project in Guyana could create the world's last petrostate. While boosting the economy, it raises concerns about environmental impact, societal inequality, and the "resource curse." Critics argue the deal favors Exxon, leading to higher living costs without adequate public benefits. Tensions with Venezuela over territorial claims further complicate the situation.
Check our recently published insights here. Recent post:
The Current State of Edtech in Latin America
As the world embraces digital transformation, Latin America is experiencing a significant surge in EdTech investments, particularly following the COVID-19 pandemic. In 2021, the region saw a sixfold increase in funding, propelled by the demand for a technically skilled workforce and the growing trend of nearshoring.
Key Growth Drivers:
